big news today for crypto the US House stable coin bill poised to go public as Congress pushes the bill through the process a bill that would finally regulate stable coins so this bill is currently going through the Senate it passed the Senate Banking Committee 18 to6 i did a vote count right before I came on the air and I think this does get the 60 votes it needs in the Senate and overcomes any potential filibuster now I think this bill will pass sometime between May and July and what it does is it sets up stable
coin issuers to be regulated either by the feds or by the state authorities and requires them to have 100% highquality liquid assets but most importantly it brings regulatory clarity and loosens up enforcement risk so that these issuers and these tokens can then operate in the United States going forward and what this would do for cryptocurrency is massive the entire US capital market gets unlocked on the passing of the stable coin bill this could easily be the next catalyst in crypto just like the two big catalysts that pushed price up at the beginning of 2024 and
at the end of 2024 are these catalysts done okay so let's talk about 2024 right so in 2024 we had two big catalysts we had ETF buyers if we look at the ETF buyers based on 13F filings from December majority of those are firms that are farming the basis trade right they're not long-term holders it's not mom and pop going out and buying in their brokerage account explain how that works okay so basically how it works is people are buying the ETF and then shorting Bitcoin so they're capturing a basis spread if we look at
Micro Strategy Convert Arbitrage right is Convert Arbitrage great strategy uh Micro Strategy and uh IBIT have been propping up that complex they've been the predominant buyers and they now hold 6% of the Bitcoin supply so a lot of growing concerns around a potential black swan if that trade unwinds and I love Melton Demir's analysis i do think the black swan fear is a bit sensationalized she's really just saying is what's the next catalyst now that these two things are done not that the ETFs won't continue to buy but it's just normal now it's priced in
so what's next what's interesting about a stable coin bill is that this catalyst is great for Ethereum it's great for Tron Solana as well as BSC this is something Donald Trump is pushing because breaking news as of a few days ago Trump's World of Liberty which is his crypto company has deployed a stable coin named USD1 on the BNB chain meaning Donald Trump wants this stable coin bill to pass there's hundreds of billions of dollars already in Ethereum Tron Solana as well as a few others in the stable coins also the Ripple XRP ledger is
quietly gaining traction through their RLUSD stable coin and the news today is this ripple stablecoin RLUSD skyrockets 319% in 24hour trading volume why is Ripple's stable coin seeing this much volume so quickly and all this is before the bill before the space is regulated regulating this could move this number into the tens into the hundreds of trillions and Bloomberg Intelligence's Nathan Dean explains nathan what do you see as the big difference when this bill becomes law versus before it becomes law if it indeed does become law well for the issuers in particular it's going to
mean much more in terms of costs you know probably think about tens of millions of dollars in terms of compliance costs for these issuers now the issuers are going to be happy to pay it it means that they are not going to be brought up on enforcement violations or anything like that because you know even though the enforcement risk apparatus is much lowered today because the changing guard at the SEC unless that law changes nothing prohibits a future SEC from coming back and saying hey you're operating against the law here's an enforcement action for your
trouble so I think the issuers are going to pay more money but it also brings more acceptance to the idea of stable coins in the United States the one area that I think is not going to be happy with this is community banks because if you think about it like where are you going to get the money for stable coins if I decide to put more money into stable coins it's most likely going to come out of deposits so that could come up as an issue as we see this debate go into the bigger broader
center Senate but I don't think that's going to be an issue that stops this bill from passing also Chainlink is working on their own proof of stable coin bill i need to share with you this clip but coming back to this chart like I said we would it appears the death cross is closer to happening so a death cross which has happened multiple multiple times in Bitcoin's history is really just when a shorter term moving average typically the 50-day crosses underneath the longer term moving average the 200 day signaling bearish short-term price momentum and although
it's a trailing indicator I'll explain it does usually crash price i put out this post on March 18th so now it's eight days later but back then I said just in Bitcoin about to make a death cross the 50-day and the 200 day moving averages extremely bearish note this is not confirmed just an early watch warning if you're trading this get up to $8,000 in trading bonuses with code altcoin daily on Bitunix limited time for the bonus link down below but check this out we see a death cross happened here here here and most recently
back in July of 2024 and what you'll notice is this is typically a trailing indicator so you'll see the price crash happened into it it didn't happen after it it happened into it also like here happened before like here the crash happened before like here the crash happened before and we're on death crosswatch again checking back in it's now eight days later and it does look like the 50-day moving average is eventually going to cross that 200 day moving average bitcoin has sort of risen into it because we don't really have a big catalyst happening
in the next 4 to 6 weeks right if that stable coin bill gets passed that's going to happen at least a month from now maybe two months from now will we see a sell-off again now also you could make the argument is hey we already did bitcoin went from 98,000 to high mid $70,000 that was it i am not a fortune teller i don't know what the Bitcoin price will do tomorrow and neither do you anybody that tells you that they do is lying to you but what I do know is that traders control the
market in the short term fundamentals control assets and markets long-term let's keep tabs on this and this is actually really big chainlink just confirmed they're working on a bill with lawmakers called the proof of bill requiring stable coins and real world assets to have a proof of reserves it will literally be the law to use chain link if passed the proof of bill that we're working on with a number of other legislators and their staff and and and other groups here in DC is really focused on proving that the real world assets that are backing
a coin whether it's a stable coin whether it's a tokenized fund whatever the coin is about that those assets actually exist and that that proof about them existing doesn't happen on an annual audit basis doesn't happen on a monthly report basis basis in the form of a PDF that you know is very unclear and it's not very clear how anything was verified but it happens on a second by second basis so it happens in near real time and beyond happening in near real time you can drill down into the details of the underlying asset so
you wouldn't just know that it's treasuries you would know that it's treasuries you would know that it's 2-year or 5year or 10 year treasuries you would know the yield on the treasury trenches you might even know the custodian with which those treasuries are held so this is super innovative these will not be your granddad's stable coins so to speak we can use blockchain technology for proof of reserves or just authenticity with these big players so the proof of bill and our work on proof of across different asset types will really allow for the most reliable
assets to come out of the US financial system and just like the US legislated into existence risk agencies we think it should legislate into existence this proof of bill to make sure that the financial products generated in the US system are fundamentally better and fundamentally more reliable because they require this high level of proof of information and this goes very well and in line with the current model of what makes the US financial system reliable which is highly reliable assets with a certain level of regulation and information requirements this is basically just continuing that but
doing that in an onchain way that massively benefits the consumer the market and eliminates systemic financial risk so this is what we hope the work we're doing now on the proof of bill will help us achieve most people do not understand how big this will be also anybody going to Bitcoin conference in Vegas later this year my brother and I will be speaking mainstage michael Sailor will be speaking cynthia Lumis will be speaking arthur Hayes Seedine Grant Cardone as well as us use code altcoin daily for 10% off your ticket before ticket prices increase link
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