XRP Ready For Clarity Act Bullrun

[00:00:00]All right, folks. Things are starting to heat up in DC as the Clarity Act comes back into focus. We are down to the final countdown here before that August 7th recess, but we have statements that I'm going to share with you here. It looks like we might be getting a vote on the Clarity Act next week. But I also want to discuss how XRP is positioned for a bull run. Either way, we already have institutional adoption and we have a quote here from Brad Goinghouse. I'm going to play a clip of really a hidden uh really a hidden chat. Not many people I think have pulled clips from this fireside chat that he just did at Kansas. But one of the comments in particular where Brad Ginghouse is confirming that US growth is happening after the SEC case has concluded with or without the Clarity Act. We're in the clear and our institutional adoption is growing. And this sets us up for a bull run no matter whether or not the Clarity Act gets done or not. So, let's get you straight on into the update. If you guys are new here, make sure you guys have subscribed and hit that notification bell so you don't miss any of our content. And let's get you right on into the update. This is from both sides of the aisle. Democratic Senator Mark Warner. He says he's done with this.

[00:01:13]He's tired of being in crypto hell and he wants America to lead in digital assets. Let's run it. Um, I tend to work with you and and and the secretary, you know, I want this done and I am tired of being in crypto hell, but we got to do it in a way that doesn't make this circumstance worse. I want America to lead in digital assets, but if we get it wrong, uh, the downside ramifications could be huge as well.

[00:01:39]>> So, this urgency is now showing up. Both sides of the aisle saying we need to get this done. Now, Mark Warner, he's concerned about, you know, what the Trump family could do or anybody else in office. And so, he's urging we got to get this done so that this, you know, that this can stop, right? But either way, hey, let's get that sense of urgency to spread throughout DC because that's what it's going to take to get us across the finish line here. Brian Steele, he's saying that we could actually pass the Clarity Act next week.

[00:02:12]quote, "It's absolutely essential that the United States sets the gold standard for regulation in the digital asset space. Let's run it."

[00:02:18]>> You and other members of the Financial Services Committee are in New York to hold a field hearing on this bill. What can you tell us about the Clarity Act?

[00:02:25]>> This is our opportunity to put real and substantive legislation on the floor and provide regulatory clarity in the digital assets space. Again, this is an example of the House doing its job. We passed this now approximately a year ago. The Senate has been struggling to move this forward. I'm optimistic that we get this across the line next week in the United States Senate. It's absolutely essential that the United States sets the gold standard for regulations in the digital asset space.

[00:02:53]That we unlock so much capital, human capital, and financial capital that will come into these markets in the United States of America in a regulatory regime that protects consumers. Clarity does that. It's passed the House. It's time for the Senate to act. Well, I mean, the Senate is is wrangling with uh Democrats over the language on ethics.

[00:03:12]Congressman, you know that.

[00:03:13]>> Well, individuals that are concerned about the broader ethics reforms, and I think that there is a need to look at this, actually should be supportive of the bill. If an individual is concerned about how memecoins were treated under President Biden's appointment of Gary Gensler, all the more reason to move forward clarity to put a regulatory structure in place to make sure that we're regulating good and bad actors.

[00:03:35]The good actors in the space want the bad actors to be regulated. We all want the bad actors out. The Clarity Act provides a regulatory environment to be able to do just that. And so the individuals uh that grandstand on the on the ethics side should be more supportive than anyone else about moving clarity across the line.

[00:03:53]>> All right, we will leave it there.

[00:03:54]>> I think that that's exactly what Mark Warner was leaning in on, right? Is because we have to stop Trump. So now we have to get the Clarity Act done. And if that's the motivation they need, then let them have it, right? I just want to get past the political grandstanding and get to the results because on the other side of this, the US market unlock literally unlocks this space to go to tens of trillions and even hundreds of trillions of dollars with real utility.

[00:04:24]And just like he said, the good actors in the space have been acting, you know, asking for these rules of the road. We want to be regulated. We want to be in compliance. And Brad Goinghouse in this fireside chat that he just did at Kansas University, he explains how he personally went into the SEC offices multiple times without lawyers in an effort of good faith to explain that during this whole time they never never treated never expected that XRP was going to be deemed a security. They treated it as a virtual currency or commodity since the very beginning.

[00:05:01]Tried to act in good faith. tried to go into the SEC and the SEC just used that to build this case and come after us.

[00:05:08]Now, two clips that I'm going to play here from Brad Ging House speaking at Kansas and I encourage you guys to check out this full interview. I'll put the uh link for it down below in the description of this video.

[00:05:21]What he's going to outline right here is how the telecom telecommunications act was the big unlock for the.com bubble and allowing the internet to blossom.

[00:05:31]The same thing's going to happen for crypto. Let's run the clip right here.

[00:05:34]>> Okay, so you just heard why XRP is so important to the business that Ripple does. So why was the SEC so mad at you?

[00:05:43][laughter] >> They're jerks.

[00:05:46]>> Well, actually, I will comment on that in a minute. Like there is something inherent that's interesting. So a new thing comes along and you take old laws and old regulations. You say, how do you apply those regulations to this new thing? That happened with the internet right uh in the early kind of I got involved first introduced the internet in 1994 and uh you know we didn't have laws well then along comes the late 90s and yes Al Gore didn't really invent the internet but he did help create regulation around the internet and there was something in 1996 called the telecom dereg act which provided certainty about how these technologies would be regulated and by that certainty then you have investors lean in and say oh if you're an entrepreneur now you clarity and you're not worried about getting sued. Crypto was kind of clamoring for the same type of thing like how do we make sure that we understand how these will be regulated uh what laws we need to follow because the point I have made time and time again the vast majority of people I know in crypto they want to be good actors >> but you got to give them the rules of the road and if you won't give them the rules of the road then like that makes it hard. So the SE, the United States Securities Exchange Commission, which of course regulates securities, they took the contention that XRP, the digital asset kind of native to our technology stack, that that was a security and not a currency or not a commodity. It was a security. Okay. So what does that mean?

[00:07:12]We're in the school of business. Well, if it's a security, typically that means you have right title or interest in a company. Now, if you went out and bought XRP, you did not own shares of Ripple.

[00:07:24]Ripple is a private company today, still a private company. We raised venture capital in 2015, well 2012, 2015 and 2016. And we issued shares. Those are securities. And those are things that give the rights to vote on who's on the board of directors or should there be dividends and all those kinds of things.

[00:07:43]XRP is more analogous to Bitcoin, >> right?

[00:07:46]>> There isn't a company. There's Ripple cares about a lot. We own a lot of XRP, but we can't control it because it's open source. So the SEC took the contention and they sued the company saying you have been selling unregistered securities. That's illegal.

[00:08:01]You can't do that. Now it isn't a criminal issue, but it's a parking, you know, a parking ticket kind of thing. In this case, the parking ticket would have cost a lot a lot a lot of money. And we were kind of like, wait a minute. And look, I I said earlier about them being good actors or bad actors. And it I'll even reference the canen thing. I personally went into the SEC's offices four times between 2017 and 2019. Not once did I take a lawyer with me because like why do I need a lawyer? I'm just telling you here's how we use this technology. To me, as a Harvard Business School graduate, not once did I think XRP was a security.

[00:08:38]>> And and the real point here is that unlock when you get the rules of the road, when you get the regulation, it allows the money to pour in like never before. In fact, if you look, money's still kind of pouring in into this internet technology. If we kind of all lump it in together, this fourth industrial revolution, money's still coming in, right? It was coming in during the dotcom era. And that, of course, and and this new technologies always lead to a speculative bubble.

[00:09:06]That's nothing new. That's been happening since the railroads, right?

[00:09:10]But it really opens up the investment capital to go out here, invest in the entrepreneurs, the capitalists, the the capitalists, the builders that are going to bring you real utility with this technology, solve real use case, real problems.

[00:09:28]And how big are these problems? We've been able to quantify it now, right? We know how big of a flow the DTCC is moving on a yearly basis. It's 4.7 quadrillion with a Q.

[00:09:41]And you have enough clarity here because we know XRP is not a security. So you have clarity on XRP and between the different rule making, the forward guidance and the no action letter that the DTCC got, right? Some of these institutions, they're moving forward regardless of whether or not the clarity act's getting done. the DTCC, they're going live and they're not even going live on XRP, they're going live on Canton. So, they clearly are in a spot where they believe they have enough clarity where they can use Canton to start to tokenize their, you know, tokenized securities and start to go live. They're not waiting for Clarity Act. In the same way, Ripple is not waiting for the Clarity Act either.

[00:10:28]And I think I still remaining optimist that we will get the Clarity Act done.

[00:10:33]But regardless, I know that Ripple is expanding in the US with their partners right now. How do I know this? Well, let's play this clip uh from the same fireside chat, Brad Ginghouse of Kansas, where he explains this exact point. that money. Now, we decided to go and instead of go signing up in individuals, we sell our technology to banks, financial institutions around the world. I'm sure we'll talk about we ended up getting sued by the US government, which meant that our US business was very stagnant for about 5 years. Uh that's changed now, but uh hopefully that was the simple description that I kind of gave then >> it.

[00:11:10]>> So, you heard him right there, right?

[00:11:12]Their business was stagnant for about 5 years. That's changed now. I believe that you have the DTCC.

[00:11:20]They have that no action letter from the SEC. That's enough clarity for them to flip the switch and go live. Are they at full scale production? No, not yet. But they're going live. In the same way, Ripple has clarity for XRP. Now, do you have all of the clarity for how XRP can be used in DeFi? No. But do you have enough clarity for how XRP can be used in payment flows? 1,000%.

[00:11:46]And so this is why I want to I wanted to make this video to make the point here that we have clarity. We have growth. We have institutional adoption. We have inflows coming in regardless of whether or not the clarity act gets done. Now still looks like it's going to get done.

[00:12:04]Are we going to get a vote on it next week? Let's see. I'm not holding my breath. But I am remaining optimistic. I believe that now it's become a point for both sides. And that's what we need. And once you bring it to the floor for a vote, then it gets people on the record.

[00:12:19]Then we can start to have the conversations and hash out what are the issues. If you're concerned about ethics for President Trump, that's great. I'm concerned about ethics for everybody from President Trump to Nancy Pelosi to every representative that's supposed to be serving the American people in DC.

[00:12:34]I'm concerned about the ethics and I'd love to open up that can of worms, which I don't think that most people grandstanding that issue are actually ready to go into. It's easy to talk about ethics when we're pointing at President Trump, when we're pointing at Pelosi. I want to talk about everybody regardless of if there's a D or an R next to your name. And I want America to become the crypto capital of the world.

[00:12:57]No matter who is president, no matter what we what we think somebody might use this technology for, give the good operators the rules of the road and let them build. Will there be bad actors that come along? Of course. We have plenty of enforcement agencies and regulatory bodies for those bad actors.

[00:13:19]And the funny part, the most ironic part about all of this, for catching bad actors, the crypto technology makes it easier than ever before. That's the big joke is that we pretend like, and I'm talking about the the the dinosaurs in DC that pretend that it's going to be easier for criminals and bad actors to use uh this technology and not be caught. It's the complete opposite.

[00:13:43]I I still it blows me away. How stupid could you be as a criminal to use this technology to commit your crimes. But anyways, uh they love Bitcoin and Tether for those purposes. Um but all that being said, I want you guys to take that point that Brad Ginghouse outlines here that the US institutional adoption is not stagnant anymore. It is growing. It is happening. Monica Longest told us that we're going to see institutional adoption at scale.

[00:14:11]Now, does that mean XRP goes to a,000 bucks this year? I'll let you guys answer that question. That's not my baseline thesis, but I think that we have an incredible opportunity just to ride XRP back up to double digits, let alone those higher prices that some of us like to talk about, some of us like to dream about. I think it's okay to dream, but let's just acknowledge that with or without the Clarity Act, this is happening now. The opportunity is in front of you right now. And I just updated my Discord group on our weekly call that we do every Saturday at 11:30 a.m. Eastern. I just updated them on my buy orders. I'm adding more buy orders for multiple positions, not just XRP, and I shared those with my Discord group. If you guys want to get tapped in with us, it's linked up down below. Sign up through Patreon to get access to Discord. We'd love to have you in the vest investment community that we've created over there. But the point being, we're not going to let this the bare market lows pass us by. I've already been dollar cost averaging. Just yesterday, I added an additional half a dozen orders on different cryptos. We're taking advantage of this now. I'm not going to have the same regret that I have for not buying XRP at 10 cents in March of 2020. I'm not going to have the same regret of not buying more XRP under 30 cents in 2022. I'm not going to miss buying XRP under a dollar for the last time if that's what presents itself or buying XRP for the last time between a$130 and a dollar. I've already been buying in that range. Buying more H bar, buying more Zbecki, looking at getting back in at Hyperlid, looking at actually adding to Canton.

[00:15:48]I'm moving right now. I'm getting my orders on the books and we are not going to let this opportunity pass us by because we see the writing on the wall.

[00:15:56]With or without clarity, the institutions are coming in. The institutions are moving forward. The institutions are flipping the switch.

[00:16:03]And just because the DTCC going live this last week didn't lead to price action, doesn't mean that it doesn't lead to price action down the road. We weren't expecting price action last week, we're expecting price action over the next uh couple years, carrying us into the top of the next cycle. We're following the liquidity. Follow the money.

[00:16:24]Liquidity is not here. that presents the buying opportunity. Load yourself up before the liquidity comes back. This game's simple. Get tapped in with us. If you appreciate our content, please help us out by liking, hyping, sharing it out far and wide. Everything else is at my website, zackrector.com. And I am going to plug our sponsor real quick, iTrust Capital. If you guys haven't already been able to get exposure to digital assets or precious metals within your retirement funds, we have a solution for you. And in fact, iTrust Capital has a few different products. The premium cussy account and the treasury account for your business, your trust, your nonprofit. Those are the two nonretirement fund products. But this IRA is why I wanted to partner up with IT Trust Capital because we need to get exposure to digital assets and precious metals through our retirement funds. And it hasn't really been possible up until now. You got award-winning award-winning platform right here with iTros Capital.

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[00:17:54]When you use my link down below and you get your account funded, you can get a $100 funding bonus. I trust Capital linked up down below. A huge shout out to them for being our sponsor and a huge shout out to all of you guys for supporting our show here today. Really do appreciate your support. It means the world to me. We'll see you guys in the next one. Have a fantastic weekend. God bless.