Where Crypto Goes From Here Without The Clarity Act, According to Coinbase's Brian Armstrong

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Money Rehab with Nicole Lapin 49 min 1 speaker 8 chapters transcribed
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What does the failure of the Clarity Act mean for crypto investors?

Brian Armstrong 0:00
80% of crypto trading has actually moved offshore because the U.S. is a bit late on this. If the U.S. doesn't kind of get clear rules out soon, the future of financial services goes outside the United States. It's essentially a loss of American soft power.
Nicole Lapin 0:13
Brian Armstrong is the CEO and co-founder of Coinbase, the largest crypto exchange in the U.S. and the first crypto company to crack the S&P 500. He joins Money Rehab on the day the Clarity Act is being voted on. That's a bill he's invested millions of millions of dollars in to see pass.
Brian Armstrong 0:29
It's disappointing that the Senate didn't vote for it after so much bipartisan work went into it. The reality is that regulatory clarity is coming for crypto either way.
Nicole Lapin 0:37
Why he thinks Bitcoin could reach $400,000.
Brian Armstrong 0:41
If you look at the history of Bitcoin, it tends to go through these four year cycles. If it follows a similar pattern again, I could see a path for us to 3x its prior all time high by 2030. Whether
Nicole Lapin 0:52
or not you can use your Bitcoin to buy a house.
Brian Armstrong 0:54
Bitcoin was the best performing asset class of the last decade. I don't want to sell my Bitcoin. I'm bullish on it long term. I want to use it as collateral to see if I can get a better rate on a mortgage.
Nicole Lapin 1:04
What kind of regulation crypto will be getting in the future and why we should care?
Brian Armstrong 1:08
If you want me to go out on a limb and make a wild prediction, if the U.S. doesn't get these clear rules soon enough, this industry will...
Nicole Lapin 1:16
I'm Nicole Lapin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Brian Armstrong, welcome to Money Rehab.
Brian Armstrong 1:33
Thanks for having me. Appreciate it.
Nicole Lapin 1:35
Well, you're here on a really, really big day. This is the day that we just got word like five seconds ago that Congress failed to move forward with the Clarity Act, which has been your baby for years and has massive, massive implications on how crypto is classified. How are you feeling?
Brian Armstrong 1:51
Well, obviously, it's disappointing that the Senate didn't vote for it after so much bipartisan work went into it. But the reality is that regulatory clarity is coming for crypto either way. I mean, the Senate, by the way, they might revisit it here in a week or two. There's still some negotiation happening. There could be another vote. But even if the Senate doesn't decide to act, the regulators have made clear that they're willing to move forward under their existing authority to publish clear rules for crypto. So the SEC and the CFTC in this case are both very much wanting to see clear rules for crypto in America. And that's something we've wanted for a long time too. So we're going to get it either way.
Brian Armstrong 2:27
It's important because... You know, we want to have consumer protection. We want to make sure that bad actors can't use crypto for something. We want crypto to benefit everyone around the world and update the financial system, which 80% of Americans say is out of date. It doesn't work for them. It's too slow. It's too expensive. And so we've got to get this right here in America.
Nicole Lapin 2:46
Why should a person, why should a newbie investor with like 500 bucks in their Bitcoin care about any of this?
Brian Armstrong 2:52
Everybody's just thinking about how do I create financial freedom? How do I build wealth over time to benefit my family and myself and my future generations? And so there's lots of historical advice that people can go to on this with financial advisors, and they can try to build the classic portfolio of 60% stocks and 40% bonds or something like that. And what we've realized over time is that people need to diversify a little bit more than that. Bitcoin was the best performing asset class of the last decade, even with the volatility. And I'd say most financial advisors at this point, they say that Anywhere from 1% to 10% of people's portfolios should probably be in Bitcoin as an example. So that's step one.
Brian Armstrong 3:36
It's part of every diversified portfolio out there to help people build wealth over the long run. The second thing is that crypto is not just about Bitcoin anymore. It's also helping people update all aspects of the financial system, including payments.

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