This is Bloomberg Crypto, a daily Bloomberg I Heard podcast, and I'm Stacy Marie Ishmael, Managing editor of Crypto for Bloomberg News. It's Friday, January. There's a common saying among folks who work in crypto, and by that I mean there's a common saying on my team that a week often feels like a year in this asset class, and as we wrap up the second week of three, sometimes we really feel like it might actually be the week and feel like a decade. So what are some of the things that happened this week. Well, we saw more evidence of the distress facing crypto. There is an emerging fight and a pretty ugly emerging fight between Gemini, which is a crypto exchange that's owned by the Winklevoss twins, and a company called Jen Assists, which was one of the biggest crypto lenders in the world. We also had some updates as it relates to ft X, including confusingly or not why Tom Brady, Giselle Bunch, and Bob Kraft their names are popping up in bankruptcy filing statements coming out from f t X, And of course this week we will be tackling some of the biggest questions that you had for us. So thank you to everybody who's sent in questions for our three survey. Joining me to help answer those questions today will be Dave Lita, Senior editor at Bloomberg. Everybody talks about it, whether you're covering the bond market or the stock market, there's always some talk about what the influence of crypto is on any given time. Dave, Welcome back to the podcast. Another week in Crypto. Some stuff has been happening as usual. I have to admit I was not expecting to start the week with Tom Brady so much. Why are we talking about Tom Brady in this context? What happened this week, Well, besides the football playoffs, it's also f t X reckoning time for those who decided to jump on board and in this case through Tom Brady as advertising and spokespersons. And it's an interesting We got an insight into what they actually received, what was equity in ft X, and how the various stakes were handed out, whether it was him, his former wife or his former boss Bob Craft who stole into the New England Patriots. So this is the sort of difference between folks who had like money on the ft X platform, and then folks like the Celebtis that you mentioned Giselle, Tom Brady, Bob Kraft who were investors in ft X. Is that correct? Sure, you can almost use an analogy like since there are celebrities of movie actors when they get a stake in the movie, Um, the smart ones instead of getting straight houry will take a percentage of the movie and if it does well, you're gonna do very well. Right. But there are other exchanges that are I mean, I think the word troubled is fair fair to apply. And one of them has I would say, like reasonably well known and cool founders as well, the Winklevoss Twins. Sure, it's been a fascinating story. They've been caught up in the broader implosion of the market going back to the springtime, and basically they used their exchange to let customers put the money in a product that's called Urn that was really more of a pass through device on their platform that went into Genesis, which was one of the biggest lenders, if not the biggest lender in the crypto market before it imploded, and now their customers are about a billion dollars um out of luck over you know, the holiday period. At the end of two, we asked folks to send in what some of their burning questions were about crypto. But I wanted to start with someone who acknowledged I'll use the quote that for somebody who came into crypto with a lot of enthusiasm and maybe a bit of a starry eyed approach, it was pretty heartbreaking for them in two just looking at the direction of prices right where it was. At the end of one, you had these all time high is going too you still had a lot of enthusiasm. The end of two, you're like, not so good. What would you tell this person about you know, what to expect next in the depths of this crypto winter that we're in. Sure, but they have to kind of figure out why they're there first. If you believe the argument that this is the cutting edge of money, you can write it out, or you're there to make money quickly, And it really comes down to that. And if people the industry will take the former and say we're here to build you here, that a lot becomes a catch time to build, Yes, but it's been building with other people's money for the most part, and and honestly, speculation has been the number one use case. It's the beginning. Our colleagues on Bloomberg Intelligence, which is sort of our in house research service, you know, did um some analysis where they found that the use of bitcoin, specifically bitcoin as a means of exchange like for transactions hit almost record lose in two So to your point, so much of the utility that people were getting was mostly speculation, frankly true, and it questions the original argument for bitcoin and other cryptocurrencies. If you're going to be a currency, you have to be a means of exchange, and it really hasn't been. It's been a means of speculation. And this is something that the industry still struggled with one that a dozen years later. But there are absolutely still you know, the kind of the original die hards who have a much more philosophical take on the utility of bit points specifically and for some of them crypto more broadly. What is that like and how are those folks reacting to the current crisis? Sure, well, the the core group goes back to the post financial crisis of two thousand and eight, and he had a libertarian undercurrent where government basically does no good staut of our way and we can go independent. We can do this better. That had been a major selling point for crypto and still is since the beginning, and since the various crashes and this one that what they call the maxis the maximal lists are now pointing this is what it should be. Honest, it shouldn't be about this. We told you back then, stay away because they basically blame a lot of it on government spending, changed the FED, that type of thing. We'll be right back to answer the questions sent in by you, our listeners, and you'll hear more from Bloomberg Senior editor Dave Litka. Another thing we fully expect and we're all frankly already seeing, is even more regulatory scrutiny than was the case last year. And I think one of the things that's been interesting so far if some of it has been aimed at non crypto native financial institutions who have been playing in crypto or who want to play in crypto. This is especially timely when you look at circumstances like what happened to Silver Gates exactly. Silver Gates great example. It's a regulated bank that basically had a bank run and they were able to tap into the traditional federal government system this time that the home loan bank system and borrow money from then and this time as the tune of over four billion dollars. That is a lot of money on it, and the amount of banks that have been involved in crypto are very limited kind of on your hand, at least yours banks. One of the other trends that we may or may not see this is one of those too soon to tell questions, is what it means for kind of global coordination. The holy grail for a lot of folks when they think about crypto regulation is you could set up in any country and you would have the same things apply to you if you're a crypto exchange or you're a crypto customer. Our colleagues on regulation tell us that that doesn't seem to be in the cards. Have you, in your sort of history of covering financial markets, ever seen coordinates a global financial regulation for like anything? Really? Oh sure? I mean you could point back to the post global financial crisis example, and you still see it. I mean, you could see central banks move lockstep and interest rates and things like that. But in terms of regulatory oversight, on markets like this, I would expect more to be in unison, just because of the nature of this market being so fluid, all the regulatory arbitrage that has gone on over the years on it basically firms bouncing from one island to another wherever they get the most advantageous help. And some of the you can actually look in the the examples of the relationship right now between the US and the Bahamas and dealing with m f t X. Bahamas were very pro crypto from a very economic development perspective. It seemed like a good thing on it, and some of those moves appeared to maybe coming back to bite them a little bit. And there's been a lot of tension between regulations in the US and uh in the Bahamas. And it was actually a big deal a couple of weeks ago when the Bohemian regulators came to an agreement with you know, the US based Liquid Data's on winding ft X over here, and they were like, okay, fine, Like we agree that what we're trying to do is make the creditors to ft X as whole as possible, and we don't want to get caught up in the jurisdictional fight but you know, to your point, the financial crisis was a huge event. It had absolutely global consequences and reverberations, and there were very real fairs that potentially hundreds of millions of people around the world could be seriously negatively affected. One of the challenges facing the momentum for regulation of cryptota global scale is we cover it all day long, but the as you say, like the number of people and entities involved is like relatively small compared to people who are say, exposed to the stock market exactly, but it's become so prominent in ourselves, the media, and just the general markets in general. I mean, everybody talks about it, whether you're covering the bond market or the stock market. There's always some talk about what the influence of crypto is on any given time. And just as a kind of a final closing point to that note on influence, certainly one of the things that we started seeing in twenty one but especially was kind of the crossover with crypto and other industries. Right, so, like non fungible tokens and art or crypto mining, bitcoin mining and environmental considerations or energy considerations. Are there any like emerging trends or themes that we're seeing where it's like, oh, tech companies are really paying attention over here, or financial services firms are trying to figure out if they should do crypto mortgages. Like those sorts of intersections in anything you've seen so far, this interesting. Yeah, they've been percolating for a while, but I still think it's gonna be The biggest area to watch, in my opinion, is going to be what the mainstream banks do. The Wall Street firms, they're very good at compartmentalizing businesses on and and we live in a world really where money is electronic, and if some of the guiding principles of kind of removing some of the friction and speeding up the guardrails, they see it as a benefit on us. I think they're the ones that aren't gonna walk away. You may see the trading outfits pulled back, whether they're associated proprietarry shops or things like that, but um, I think they're still going to get the guys in the back room working on this. Money will be made somewhere in other Thank you, Dave, pleasure having you in the show. Happy that was Bloomberg Senior editor Dave Litka, You can find more of Dave's work on the Bloomberg terminal or on Bloomberg dot com. And once again, thanks to everyone who submitted questions and participated in our survey. We always welcome your input and feel free to email us anytime at Crypto at Bloomberg dot net. This is Bloomberg Crypto, a daily podcast from Bloomberg and I Heart Radio. For more shows from I Heart Radio, visit the I Heart Radio app, Apple Podcasts, or wherever you get your podcasts. Send us your comments, questions, or suggestions for the show to Crypto at Bloomberg dot net. The supervising producer of Bloomberg Crypto is Vicky Vergelina. Our senior producer is Janet Babin. Our producers are Mohammed Faruke and Sharon Berriro. Our associate producers are Ty Butler and Moses on Them. Desta wonder At is our engineer. Original me Sick by Leo Sidrin. I'm Stacy, Marie Ishmael. Have a great weekend.

This is Bloomberg Crypto, a daily Bloomberg I Heard podcast, and I'm Stacy Marie Ishmael, Managing editor of Crypto for Bloomberg News. It's Friday, January. There's a common saying among folks who work in crypto, and by that I mean there's a common saying on my team that a week often feels like a year in this asset class, and as we wrap up the second week of three, sometimes we really feel like it might actually be the week and feel like a decade. So what are some of the things that happened this week. Well, we saw more evidence of the distress facing crypto. There is an emerging fight and a pretty ugly emerging fight between Gemini, which is a crypto exchange that's owned by the Winklevoss twins, and a company called Jen Assists, which was one of the biggest crypto lenders in the world. We also had some updates as it relates to ft X, including confusingly or not why Tom Brady, Giselle Bunch, and Bob Kraft their names are popping up in bankruptcy filing statements coming out from f t X, And of course this week we will be tackling some of the biggest questions that you had for us. So thank you to everybody who's sent in questions for our three survey. Joining me to help answer those questions today will be Dave Lita, Senior editor at Bloomberg. Everybody talks about it, whether you're covering the bond market or the stock market, there's always some talk about what the influence of crypto is on any given time. Dave, Welcome back to the podcast. Another week in Crypto. Some stuff has been happening as usual. I have to admit I was not expecting to start the week with Tom Brady so much. Why are we talking about Tom Brady in this context? What happened this week, Well, besides the football playoffs, it's also f t X reckoning time for those who decided to jump on board and in this case through Tom Brady as advertising and spokespersons. And it's an interesting We got an insight into what they actually received, what was equity in ft X, and how the various stakes were handed out, whether it was him, his former wife or his former boss Bob Craft who stole into the New England Patriots. So this is the sort of difference between folks who had like money on the ft X platform, and then folks like the Celebtis that you mentioned Giselle, Tom Brady, Bob Kraft who were investors in ft X. Is that correct? Sure, you can almost use an analogy like since there are celebrities of movie actors when they get a stake in the movie, Um, the smart ones instead of getting straight houry will take a percentage of the movie and if it does well, you're gonna do very well. Right. But there are other exchanges that are I mean, I think the word troubled is fair fair to apply. And one of them has I would say, like reasonably well known and cool founders as well, the Winklevoss Twins. Sure, it's been a fascinating story. They've been caught up in the broader implosion of the market going back to the springtime, and basically they used their exchange to let customers put the money in a product that's called Urn that was really more of a pass through device on their platform that went into Genesis, which was one of the biggest lenders, if not the biggest lender in the crypto market before it imploded, and now their customers are about a billion dollars um out of luck over you know, the holiday period. At the end of two, we asked folks to send in what some of their burning questions were about crypto. But I wanted to start with someone who acknowledged I'll use the quote that for somebody who came into crypto with a lot of enthusiasm and maybe a bit of a starry eyed approach, it was pretty heartbreaking for them in two just looking at the direction of prices right where it was. At the end of one, you had these all time high is going too you still had a lot of enthusiasm. The end of two, you're like, not so good. What would you tell this person about you know, what to expect next in the depths of this crypto winter that we're in. Sure, but they have to kind of figure out why they're there first. If you believe the argument that this is the cutting edge of money, you can write it out, or you're there to make money quickly, And it really comes down to that. And if people the industry will take the former and say we're here to build you here, that a lot becomes a catch time to build, Yes, but it's been building with other people's money for the most part, and and honestly, speculation has been the number one use case. It's the beginning. Our colleagues on Bloomberg Intelligence, which is sort of our in house research service, you know, did um some analysis where they found that the use of bitcoin, specifically bitcoin as a means of exchange like for transactions hit almost record lose in two So to your point, so much of the utility that people were getting was mostly speculation, frankly true, and it questions the original argument for bitcoin and other cryptocurrencies. If you're going to be a currency, you have to be a means of exchange, and it really hasn't been. It's been a means of speculation. And this is something that the industry still struggled with one that a dozen years later. But there are absolutely still you know, the kind of the original die hards who have a much more philosophical take on the utility of bit points specifically and for some of them crypto more broadly. What is that like and how are those folks reacting to the current crisis? Sure, well, the the core group goes back to the post financial crisis of two thousand and eight, and he had a libertarian undercurrent where government basically does no good staut of our way and we can go independent. We can do this better. That had been a major selling point for crypto and still is since the beginning, and since the various crashes and this one that what they call the maxis the maximal lists are now pointing this is what it should be. Honest, it shouldn't be about this. We told you back then, stay away because they basically blame a lot of it on government spending, changed the FED, that type of thing. We'll be right back to answer the questions sent in by you, our listeners, and you'll hear more from Bloomberg Senior editor Dave Litka. Another thing we fully expect and we're all frankly already seeing, is even more regulatory scrutiny than was the case last year. And I think one of the things that's been interesting so far if some of it has been aimed at non crypto native financial institutions who have been playing in crypto or who want to play in crypto. This is especially timely when you look at circumstances like what happened to Silver Gates exactly. Silver Gates great example. It's a regulated bank that basically had a bank run and they were able to tap into the traditional federal government system this time that the home loan bank system and borrow money from then and this time as the tune of over four billion dollars. That is a lot of money on it, and the amount of banks that have been involved in crypto are very limited kind of on your hand, at least yours banks. One of the other trends that we may or may not see this is one of those too soon to tell questions, is what it means for kind of global coordination. The holy grail for a lot of folks when they think about crypto regulation is you could set up in any country and you would have the same things apply to you if you're a crypto exchange or you're a crypto customer. Our colleagues on regulation tell us that that doesn't seem to be in the cards. Have you, in your sort of history of covering financial markets, ever seen coordinates a global financial regulation for like anything? Really? Oh sure? I mean you could point back to the post global financial crisis example, and you still see it. I mean, you could see central banks move lockstep and interest rates and things like that. But in terms of regulatory oversight, on markets like this, I would expect more to be in unison, just because of the nature of this market being so fluid, all the regulatory arbitrage that has gone on over the years on it basically firms bouncing from one island to another wherever they get the most advantageous help. And some of the you can actually look in the the examples of the relationship right now between the US and the Bahamas and dealing with m f t X. Bahamas were very pro crypto from a very economic development perspective. It seemed like a good thing on it, and some of those moves appeared to maybe coming back to bite them a little bit. And there's been a lot of tension between regulations in the US and uh in the Bahamas. And it was actually a big deal a couple of weeks ago when the Bohemian regulators came to an agreement with you know, the US based Liquid Data's on winding ft X over here, and they were like, okay, fine, Like we agree that what we're trying to do is make the creditors to ft X as whole as possible, and we don't want to get caught up in the jurisdictional fight but you know, to your point, the financial crisis was a huge event. It had absolutely global consequences and reverberations, and there were very real fairs that potentially hundreds of millions of people around the world could be seriously negatively affected. One of the challenges facing the momentum for regulation of cryptota global scale is we cover it all day long, but the as you say, like the number of people and entities involved is like relatively small compared to people who are say, exposed to the stock market exactly, but it's become so prominent in ourselves, the media, and just the general markets in general. I mean, everybody talks about it, whether you're covering the bond market or the stock market. There's always some talk about what the influence of crypto is on any given time. And just as a kind of a final closing point to that note on influence, certainly one of the things that we started seeing in twenty one but especially was kind of the crossover with crypto and other industries. Right, so, like non fungible tokens and art or crypto mining, bitcoin mining and environmental considerations or energy considerations. Are there any like emerging trends or themes that we're seeing where it's like, oh, tech companies are really paying attention over here, or financial services firms are trying to figure out if they should do crypto mortgages. Like those sorts of intersections in anything you've seen so far, this interesting. Yeah, they've been percolating for a while, but I still think it's gonna be The biggest area to watch, in my opinion, is going to be what the mainstream banks do. The Wall Street firms, they're very good at compartmentalizing businesses on and and we live in a world really where money is electronic, and if some of the guiding principles of kind of removing some of the friction and speeding up the guardrails, they see it as a benefit on us. I think they're the ones that aren't gonna walk away. You may see the trading outfits pulled back, whether they're associated proprietarry shops or things like that, but um, I think they're still going to get the guys in the back room working on this. Money will be made somewhere in other Thank you, Dave, pleasure having you in the show. Happy that was Bloomberg Senior editor Dave Litka, You can find more of Dave's work on the Bloomberg terminal or on Bloomberg dot com. And once again, thanks to everyone who submitted questions and participated in our survey. We always welcome your input and feel free to email us anytime at Crypto at Bloomberg dot net. This is Bloomberg Crypto, a daily podcast from Bloomberg and I Heart Radio. For more shows from I Heart Radio, visit the I Heart Radio app, Apple Podcasts, or wherever you get your podcasts. Send us your comments, questions, or suggestions for the show to Crypto at Bloomberg dot net. The supervising producer of Bloomberg Crypto is Vicky Vergelina. Our senior producer is Janet Babin. Our producers are Mohammed Faruke and Sharon Berriro. Our associate producers are Ty Butler and Moses on Them. Desta wonder At is our engineer. Original me Sick by Leo Sidrin. I'm Stacy, Marie Ishmael. Have a great weekend.