Today Bitcoin and ether are in the red To kick off the week a federal court Rejects kraken's motion to dismiss an SEC lawsuit against the crypto exchange And Senator Cynthia lumus sits down with Us at the Wyoming blockchain Symposium Where she discussed the latest on her Proposal to build a US strategic Bitcoin [Music] Reserve welcome to cnbc's crypto world I'm McKenzie sigalos cryptocurrencies Are headed lower this morning by new Eastern Bitcoin dropped a little less Than 1% and was trading at 63545 ether fell by 1.5% to 2722 and salana slipped a little more Than 1% to 15770 but that only tells Part of the story if we look at Bitcoin's performance since our last Episode on Friday that cryptocurrency is Actually Up 3 and a qu% while ether's up Nearly 2% in that Time okay let's talk about the top Stories a federal rejected kraken's Motion to dismiss an SEC lawsuit against The crypto exchange that's according to This court filing from Friday which says That the defendants have 20 days to Answer the complaint the SEC charg Kraken back in November with allegedly Operating as an unregistered Securities Exchange broker dealer and clearing Agency Friday's Court filing says that Kraken does not deny it never registered
With the SEC but says that it does not Need to because the transactions that it Enables on its platform do not involve Securities and therefore do not fall Within the sec's regulatory purview the Filing goes on to say that quote the SEC Has plausibly alleged that at least some Of the cryptocurrency transactions that Kraken facilitates on its Network Constitute investment contracts and Therefore Securities and are accordingly Subject to Securities laws and that the Motion is denied now despite the denial Of kraken's motion the firm's Chief Legal officer called the court ruling on Friday a win in a series of posts on X Marco s Tori wrote on Friday that the Court ruled that none of the tokens Trading on Kraken are themselves Securities which is a significant win For the crypto exchange and crypto users Everywhere he went on to say that the Ruling confirms that the SEC cannot Credibly regulate crypto by enforcement We reached out to the SEC regarding Friday's development but didn't hear Back right away next telegram Which is Popular with crypto users says that it's Abiding by EU laws including the Digital Services act following the arrest of of The messaging app CEO pavl durov in France over the weekend the company Posted on X yesterday that durov has Nothing to hide and that quote it is
Absurd to claim that a platform or its Owner are responsible for abuse of that Platform the president of France Emanuel Macron took to X to clarify that the Arrest was not a political decision but Rather as part of a Judicial Investigation today the Secretary General of a French Federal agency that Combats violence against minors wrote on LinkedIn that at the heart of this issue Is the lack of the platform's Cooperation in the fight against Pedophilia now telegram linked ton coin Plunged following reports of D's Detention and as of noon Eastern it's Trading at $563 according to data from coin market Cap at noon Saturday prior to reports of Dra's detention it was trading at around $684 okay so we all know that in recent Months Donald Trump has shifted his Crypto stance switching from skeptic to Advocate and the move involved the work Of a small army of bitcoiners and other Crypto Advocates who were able to make Their way into the candidates Inner Circle in particular three friends in Puerto Rico came together to try and Convince the Republican Presidential Hopeful of bitcoin's value and to Eventually make that position known to a Key audience at Bitcoin 2024 in Nashville now in Bitcoin speak Trump was Orange pilled that's a play on the
Phrase red pill from the movie The Matrix where the main character is given A choice of taking a red pill which Offers access to the UN settling truth About the world or a blue pill which Signifies a false but far more Comforting version of reality orange Pill refers to bitcoin's official color And represents one's dedication to the Cryptocurrency over Fiat currencies now Within the group of confidants friends Family members and colleagues United in Their mission to orange pill Trump were The trio of Puerto Rico residents which Include a former California prosecutor And the organizer of the Bitcoin Conference in Nashville the trio spent Months secretly teaching Trump about Bitcoin and the former president's Recent Pro crypto stance has led to a Surge in endorsements and donations from Big names in the industry including the Winkl Vos twins meantime Democrats were Trying to show that they can find common Ground with the crypto industry despite The tension that is surfaced in recent Years from the Biden Harris Administration and the heavy regulatory Hand of SEC chair gendler in fact last Week Harris's campaign adviser Reportedly said that the Democratic Nominee would take a more supportive Stance on emerging Tech like crypto All right sticking with politics for our
Main story crypto world's T mckel sat Down with Wyoming Senator Cynthia lumus Last week at the blockchain Symposium in The cowboy state where the two discussed The latest on her recently announced Bill to build a strategic Bitcoin Reserve she also weighs in on Washington's progress to pass crypto Regulation Senator lemus it is lovely to See you again thank you so much for Joining us in this beautiful setting uh Here in your home state the last time we Spoke you were just revealing Your proposal for a strategic Bitcoin Reserve and I think hoping for uh a Substantive sort of feedback period here Between now and the end of the year How's that going well it's going really Well uh we had proposed that we use our Gold certificates bring mark them to Market sell them for US Dollars invest US dollars in Bitcoin store it untouched For for 20 years and a million Bitcoin Would reduce our current debt in half so Uh it is a play to back the US dollar It's also a play to um make sure that Our debt is being retired and having a Strategy for it so I continue to visit With members of the senate about that Concept uh we know this is something That's not ready for 2024 Prime time Legislation uh but it will be in 2025 is there any good feedback you've Gotten constructive or otherwise that uh
Has been eye opening to you I haven't Seen any feedback that leads me to Believe that we're not on the right Track the feedback I've gotten so far is What we usually hear about digital Assets that they're Volatile and that this is not uh the Kind of volatile asset that can Underpin the US dollar uh what people Aren't seeing is how much less Volatility there is now than there was At the beginning of Bitcoin in 2009 and How volatility as the asset grows will Continue to be reduced uh so it's just Uh an exercise in uh getting feedback From people about what makes them Uncomfortable and then trying to address Their questions usually their questions Are based on you know a lack of indepth Study of Bitcoin and I can see why People are reluctant to take that deep Dive just because you really have to Spend some time at it and people who are Busy with all kinds of policy issues um Find it hard to find the time to um Study an asset that's unfamiliar to them But they will because they have to the Entire world's going to be digital and We have to lead in this area right now We're not leading and that's just not Where the United States needs to be it's An interesting point you make about Volatility because that that is such an Inherent quality of Bitcoin and you
Still do see a bunch of that volatility But you're right if you look back um you Know 10 or more years it does slowly Become more and more reduced Volatility in August is typically not There it's usually a sleepy month but we Have had some volatility in recent weeks And you know the election has become Kind of a theme for the crypto markets Here um so I I want to Pivot a little Bit Senator Schumer made kind of a Splash I think it was a couple weeks ago Now where he said on the crypto for Harris call that he he was pushing to Get crypto legislation passed and said That he thought it could be done by the End of this year what would make that Something that you could put your Support behind well I'm very encouraged By those remarks uh we know there's Legislation in the Senate a committee Because the Commodities portion of Digital assets which really is Bitcoin And ethereum for now um are under the Jurisdiction of the Senate ad committee Because the commodity Futures Trading Commission falls under their Jurisdiction and so there is a bill that Can prove to be the vehicle uh to Kickstart the Senate's debate on digital Asset regulation so the fact that Senator Schumer who is in the very best Position to move this forward uh and use His clout as the Senate leader to do so
Uh it just makes me Encouraged there have been two key Themes on legislation so you know There's Market infrastructure and their Stable coins is there one or the other That you see having a better chance of Getting through First maybe not necessarily this year But the first one well once a Bill gets Out of the Senate ad committee and goes To the floor uh then all kinds of Amendments can be added so the way I Envision it happening if Senator Schumer Chooses to exercise his uh leadership And his position to move it forward is That a bill that is cftc based comes out Of the a committee to the senate floor At which point the SEC portion could be Added the stablecoin portion could be Added uh and it could become a larger Financial Services type of bill um so uh If it happens that's how I see it Happening we know you've been very um Supportive of the Bitcoin industry and You've put your name behind some stable Coin legislation crypto of course goes Beyond Bitcoin um and you know Symbolically it's one of the things that Makes it fun to be at this conference Here in the state which historically has Pushed the boundaries of financial Innovation you know we're talking so Much at this event about the future of Crypto and digital assets what are some
Key themes that are of interest to you What do you see as sort of the next big Thing to tackle in the crypto space well I'm learning a lot more now about uh Utility token Uh the notion that something could be on The blockchain that establishes property Rights and how that can benefit all Kinds of businesses the applications are Almost Limitless and so it is the Component of digital assets that really Is more a store of property rights as a Bitcoin or excuse me as a um blockchain Ledger that I'm learning more about and Trying to uh appreciate and understand Where regulation is not necessary and Where we should let this industry run And innovate and grow uh or where um Matters like uh data privacy uh need to Be protected in that process so um I'm Learning a lot about that Component uh of the cryptocurrency World okay that's all for crypto world Today but we'll be back again tomorrow And we'll see you then
