Transcription
Hello, this is Matt on the Moon Lambo channel. Can you believe it's already been over five years since the SEC first sued Ripple, claiming that XRP itself was a security, attacking XRP holders on a global scale by doing so? And of course, we know how that turned out. We were on the right side of history, of course. Uh, XRP was found to not be a security.
Then, of course, you know, President Trump got elected. The war on crypto was declared over. And you know what's happening right now? Well, the new crypto bill absolutely cements XRP's legal status. Um, and and of course, it still has to get approved. I'm talking about none other than the Clarity Act. And um, you know, I'm optimistic at some point this calendar year, it's it's going to get pushed through. Now, there are some good things and some bad things, and I want to talk about some of those highlights. Uh, but first, I just want to focus on the fact that there is something in in this uh bill specifically that materially positively impacts uh anybody that holds XRP. I mean, the, I'm telling you folks, the reason this matters, even though XRP already technically has legal clarity, this is the, the green, this is the green light of all green lights. You are on an institutional level, maybe you're running a wealth management firm, whatever it may be, uh, there is no excuse to not to not uh, let customers that are interested in risk-on assets, even the riskiest of risk-on assets, have exposure uh, to XRP specifically.
I, I'll show you folks, but before going further, I do want to be clear. I do not have a financial background of any kind. I am not offering financial advice, and you definitely should not buy or sell anything because of anything I say or write. I'm just an enthusiast who enjoys making YouTube videos about crypto-related topics, but just as a hobby and just for fun. As I record this video here, um, it is 8:58 p.m. Central Time uh, here in the good old Midwest of the uh, United States. So, it's a uh, Tuesday, uh, January 13, 2026. And I'm assuming that any news that is going to come out on this for the day, it's probably already come out. So, uh, there, there will be almost certainly additional news throughout the rest of the week, which I'll be happy to report on. But a few of the biggest things that are probably going to happen this week already did happen. Uh, just you got to love this headline, though. Crypto bill draft grants XRP, Solana, and Dogecoin same legal status as Bitcoin. Uh, piece reads as follows. A draft version of a key US Senate bill could grant major cryptocurrencies like XRP, Solana, and Dogecoin significant regulatory relief by placing them in the same category as Bitcoin and Ethereum. According to text circulating ahead of the official release, uh, the draft of the Senate Banking Committee's Clarity Act released by Chairman Tim Scott of the Senate Banking Committee today includes a provision that would classify certain tokens as non-ancillary assets, uh, effectively exempting them from being treated as securities and from related securities and Exchange Commission disclosure requirements. The legalization is based on a token's inclusion in a regulated financial product. And so folks, check this out. The fact that there are now live spot XRP ETFs, with the first one, of course, launching November 13th of 2025. The fact that happened is the reason we're in the clear. And it's so funny that this is the reason, but it is the reason. Check this out. Uh, the draft text specifically, uh, specifies that a token is considered non-ancillary and not a security if on January 1st, 2026, any units of that network token were the principal asset of an exchange-traded product listed and traded on a national securities exchange. The document read. That that's it, folks. That's the reason. They have arbitrarily selected, arbitrarily selected that date and that rationale as why, because it's the government, you know? But I'll freaking take it. Hey, it's to my benefit. It's to your benefit. I'll freaking take it. Um, and uh, so anyway, I mean, think about it. There, that's not a broad enough parameter to catch to catch anything that may happen in the future. They're just looking, they're looking backwards. They're looking in the rearview mirror here. They're looking at what's happened there, declaring certain things about what has happened in the past, and that specifically does not do anything to capture any any coin that would be perhaps treated the same way effectively at any point in the future. So, that's the part that's silly to me. That's why as soon as I saw this, I was like, "Oh, yeah. Okay, thank you. Thank you, government." Okay, but again, this is to our benefit. I very much like it since I'm biased and I have heavy XRP bags, so I admit it. Like, yeah, I really like it.
Anyway, uh, based on existing ETP listings, this would all, this would apply to XRP, Solana, Litecoin, Hedera, Dogecoin, and Chainlink, granting them a regulatory status parallel to Bitcoin and Ethereum from the bill's effective date. The immediate impact is on institutional access, not short-term speculation, experts told Decrypt. Yeah, and that's absolutely correct. The immediate impact is on institutional access because now any firm that may have felt skittish about uh, XRP to any degree, I mean, once this has got to get approved, but any, any firm that that might feel that way, they're no longer going to feel that way. Unquestionably, that's the case. And also want to give a credit and shout out to Alan Ter, of course, Crypto with Crypto America, uh, for for uh, highlighting this this news, this breaking news, uh, in great detail. And if you want to see the actual screen grab from the the draft of the bill, it's on your screen right there. Uh, but take a look at this. So this is the latest we've got right here um, from uh, XRP ETFs. Massive inflows, cumulative total net inflows, $1.25 billion. Total net assets, $1.54 billion. And of course, cumulative total net inflows, that just shows how much money literally flowed in uh, to to uh, XRP ETFs. Total net assets on the other hand, accounts for the changing price of XRP. So it notes what it's worth now based on the actual price of XRP right now because these ETFs are backed by actual XRP. Of course, I'll also note that although yes, and I reported on it at the time, sad, sad, we did have our first day ever of XRP uh, ETF outflows, and it was a bloody day in crypto that day. It was January 7th and um, so yeah, it broke the streak. That was um, 30, I think 37 business days, 55 days total, if my, if memory serves here, of nothing but inflows day after day. Um, but but I, I will also note since that one day of outflows, we've gotten three days of inflows since. But look, the key takeaway from this specifically is just to understand that once this is ultimately approved, the amount of extra money that will flow in to uh, XRP spot ETFs, it's going to be substantial. So I think it's very obvious that once XRP got approved, and the SEC, so the SEC didn't do anything to delay the launch of these spot XRP ETFs, um, once the world saw that that was enough for for tons of firms, but what I'm saying is there are different degrees of caution for different institutions, and what I'm saying is this is the last piece that needs to be removed. This, this, why I said at the video, this crypto bill, once it's passed, cements immense XRP's legal status in a way that it much deserves, and this is going to be fantastic for for all of us. So it is coming here. Um, there's also this. And so, you know, two things here. So I do want to highlight this before I forget. I want to make sure I mention this in this video because this is actually really important. The Clarity Act, that's this is the big one. So, so last year, we got uh, we got the Stablecoin Act that that was approved. I'm glad that Congress got that through. Uh, that was all about stablecoins. Happy to see it. But this is, this is the big bad mama jama right here. The Clarity Act. This is the one that is about how you govern all things, all things crypto. Like this, this is the big one. Okay. Not just stablecoins, but everything.
One of the very good things in here is that um, people's right to self-custody is maintained. And I mean, obviously, this would have been a non-starter if, if uh, if that weren't safely protected. I can't imagine anybody that, that you take seriously in crypto would support this thing. So, very happy to see that this draft does support uh, those of us who want to engage in self-custody. And I do. I personally do. I know not everybody's going to want to, and that's fine. Uh, I do. I'm a big fan of that. Um, that's something that really matters to me. So I'm very glad that it is in there. However, uh, looks like the banks are getting a bit of protection from some of their friends in Congress. And this I do not like. Uh, here's the update from Alan Terret. Yield update. Banks may have won this round on stablecoin yield. The latest draft, page 189, says companies cannot pay interest just for holding balances. You can earn rewards, but only if they're tied to opening an account or activity like making transactions, staking, providing liquidity, putting up collateral, or participating in network governance. Senators now have 48 hours to make amendments to this text. So, uh, so unclear if these provisions will stay the same for Thursday. So, we'll see what happens. And that's why I said up to this point, that's why I was mentioning the time earlier because at least as the time that I'm recording this, uh, there's no change to this. Not that you would necessarily expect it this late into the evening, but this is what we're, the big thing that we'll be watching for here. And I, I know what they're doing here. Obviously, um, the banks view this as a threat. Of course, they do, because this is a new investment vehicle which, if adopted truly at scale, is going to be very appealing compared to investment vehicles that banks offer, which are in Trad land. That's why banks have certain products that they like to offer uh, and so you can get percentage, you get some yield on whatever the hell uh, that the product may be. Uh, this is a threat to that. That is why this is happening right here. And it's, it's just obviously the incumbents uh, calling in favors here to stop this. So I hope this changes. Um, you know, I'd hate to see this, this uh, this move forward as written for this particular reason. Um, you know, I know you're not going to be able to win everything, but I, I think that this is something that is worth fighting for. Um, the good news is the things that I think are even more important, like a couple of them I already cited. We're getting that uh, self-custody that's going to be maintained. I would, of course, I don't think anybody's really doubting that, but it needed to be there explicitly. We do have that, and then also protection for coins like XRP. Very happy to see that. So on the whole, uh, this does seem to be quite obviously a very big net plus, and it's just going to draw more money into the crypto space, which means we get wealthier even faster. Um, but I don't like this one. It's very obvious it's the, the incumbents playing dirty here.
Here's a post from Matt Hogan on this. He's the CIO of Bitwise. Uh, they have launched a number of crypto ETFs, including an XRP ETF, and so they wrote, "So the government, number one, creates inflation through bad fiscal/monetary policy, and then two, makes it illegal to earn interest. Just making sure I have this right. And to be clear, I don't think the effort to ban stablecoin yield really matters long-term. Technology will find a way to deliver interest income, but the idea that politicians are so brazenly protecting bank profits at our expense is absurdly anti-consumer." Spot on. I agree with that. That, that 100%. There is also this post from Paul Greywall. He's the Chief Legal Officer over at Coinbase, and he wrote in response to this just this afternoon. "Big banks earn $360 billion plus annually from payments and deposits. Now they're lobbying to kill crypto rewards because real competition threatens those margins. Congress shouldn't pick winners and losers, especially when the losers are everyday Americans." Yes, exactly. So, we can all see through this. It's just a shame that this is the case, but it is what it is. I mean, it could still change, you know, fingers crossed. We'll see here, but I'm still overall happy with the progression here. And again, I just, I can't, I don't know how to sufficiently, um, sufficiently, um, you know, I can, it's not even hype, but I don't how to sufficiently get across the idea that this is a big freaking deal in terms of what this will do, like once this is approved, what this ultimately means as years pass for us getting rich in cryptoland. It's a big deal. It will absolutely change the way that so many businesses and institutions and people across the board treat crypto. People that wouldn't give it a second look, they're going to be giving it that second look. You know, absolutely, because it will be fully reg, 100% fully regulated. There would be no reason not to. It's just another asset class that exists. You know, it's like stocks or precious metals. It's just a thing out there that's regulated. And the amount of money it's going to flow in. And mind you, this is happening in the United States, the largest capital market on the entire damn planet. Getting that clarity in the biggest market on the planet is great. No matter where you live on this, on this green earth, it's a really big deal. So, you know, time would need to, like, once it happens, let time pass. But I'm telling you, the amount of money that will flow in over a span of three, four, five, six years, you, you pick a time frame, is going to be way, way, way bigger than it would otherwise be. We are finally getting into that phase of maturity for this crypto asset class. We're where seriously, even like the government's finally taking it seriously because this was a ground-up organic thing. It was retail that got this going for us, regular people. Then the institutions came in. That's not normally how things works. Usually, it's the institutions that drive things and then the retail side jumps in and throws their money in. This is organic and it was backwards compared to that. It's just the coolest thing. So, it has taken some time, but it's here to stay. We've already won in that regard.
I'm not a financial adviser. You should not buy or sell anything because of anything I say or write. That would be a very, very, very bad idea. Until next time, to the moon Lambo.