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All right, let's talk about some regulatory stuff.

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Uh According to a document seen by Jack Schickler and verified by Coindesk,

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the EU is really thinking about how to regulate stable coins.

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This is happening against the backdrop of some

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pretty crazy stuff in the crypto markets,

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but it's certainly not kicked off by the crazy stuff in the crypto markets.

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This is something that regulators of the world

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over have been thinking about pretty closely.

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These last, I don't know,

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3 to 6 months as conversations around CBD

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CS and monetary policy more broadly ramp up.

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So this one here is how the EU is thinking about how to regulate stable coins above,

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you know, a certain threshold, et cetera, et cetera,

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getting into the kind of nitty gritty of how a

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stable coin regulation could work in the European Union.

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So this is interesting to see,

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interesting to see a leaked document in this instance and uh some

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good reporting by Jack Schickler and Nick Day on the regular team,

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regulatory team to get this one on the record.

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I will toss it to

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George for his thoughts on the EU stable coin approach.

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Uh

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You made

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you made, you made a statement that

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they've been talking about this for a while, for a while, I guess.

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But uh I mean, the timing, right,

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the timing on this secretary Yellen was literally just talking about

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how stable coins have paved the path for CV D CS.

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Come on now,

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this is just governments and politicians acting opportunistically as they do.

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Um You know, the, the big global European super government is here to save you.

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I have nothing more to say than that than that for now. So Jen,

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go ahead,

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talk me down. All right.

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So the article says that national ministers who meet in a body known as the council

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of the Eu want to stop rivals to fiat from operating if they become too popular.

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So under the plans,

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regulators could order the issuer of

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any stable coin exceeding €200 million.01 million

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transactions daily to cease issuance until the

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figures come back below the threshold.

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So the language here is really interesting to me, right, we talk about the human

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protecting retail investors.

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That's the language that's been used a lot in North America.

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But it, it sounds like the language here is really just getting right to the point.

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You know,

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we this is a threat to the Euro and so we need to keep it within

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a nice bubble within a nice framework that doesn't feel scary or fearful to us.

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And that's what I took away. I mean, I think that everything that's happening in

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the markets now is great leverage for them to,

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to maybe push some of this regulation through that.

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Maybe there would have been some more discourse around, have the markets uh not

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uh taken the turn that we've seen.

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But the language is so interesting and I think so truthful,

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we talk a lot about regulators, you know, hiding their real,

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their real opinions behind really emotional language,

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the language we used before the break.

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But this just really gets right to the point.

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They are afraid of what, what this could mean for the Euro.

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Well, what do you think?

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I'll take it there. My language was not emotional, it was just bearish, too bearish.

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I'm emotional. So I just, I just have to feel like

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I need to let the people know. I'm feeling sad about what's happening.

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Sorry, I'm too much of a bear. I, I apologize for it.

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Now,

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the interesting thing to me was looking at the quote from

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Adler who said crypto has obviously rocketed up the agenda.

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Uh Adding that crypto is now one of the three CS that

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represents the top focus area for regulators alongside COVID and climate change.

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So it's crazy to see that crypto has moved into that spot,

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right where two or three years ago, crypto was like probably down the ladder,

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like maybe like 10th 11th thing on the list.

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Like we'll get to it when we have some time like

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COVID, obviously right up there very quickly,

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climate change has been on the agenda for like over a decade at this point right now,

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crypto is right at the top.

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And why is it that the top?

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Well, it's because it's pushing the button on a lot of financial things,

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people are losing money.

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Like we saw yesterday, regular investors are losing money.

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And that is a big goal of these regulatory bodies is protect,

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protect regular investors right from, from losing money. But it's also

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stable coins.

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And that can hurt government's ability to steer monetary policy,

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can hurt government's ability to track money,

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her government's ability to control their economy.

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And so they're also looking at it from that angle like

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you can take a little bit of a tinfoil hat,

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look at this uh headline if you want.

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And I think a lot of people will in the crypto community because that's

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generally what motivates people uh in the crypto ecosystem.

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And I think for, for some reason that's good, right?

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Stable coins, especially things like tether us DC,

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they obviously provide value.

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But if the government comes after them, that's really going to hurt the market.

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I mean,

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if we saw today that that what happened with Teller's de pegging episode just

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for even a second has caused so much concern within the crypto industry,

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imagine what would happen if we had like a blanket rollout of a stable coin

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ban or a blanket rollout of some really

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tough regulatory action against a stable coin.

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Imagine what the repercussions or effects would be for the larger crypto economy

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that would be super tough. So glad coin has got to the story.

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This is only going to become more important, only going to become more important.

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Also as Europe starts adopting more stable coins, I think that's

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one thing that's not really included in this story is that

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Europe doesn't really have a large stable coin market compared to

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the US D backed stable coin market.

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And there's a lot of reasons for that, we probably don't need to get into.

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But as stable coins start coming to Europe,

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there's going to be some regulatory action around it.

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Zach going to boot it up to you for your take.

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Yeah, it's also just uh interesting to see, you know,

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different bodies within the eu you know, considering different approaches,

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right?

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You have the uh you have the European Commission sort of considering a kind

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of a ban above a certain cap kind of a tougher approach I'd say.

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And then you have sort of the parliamentary side

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that basically wants to put the stable coins under sort of the eu banking authority,

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which which may be a bit of a sign, understand.

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So

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um the idea that this is being discussed

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at that level of granularity is interesting,

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but you know, we're also seeing other headlines out there that like, you know,

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there needs to be sort of a global coordinated regulatory

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approach to stable coins emerging across these different markets,

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right?

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So this is sort of happening at the um

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fif conference where financial people talk about financial things.

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And this is, you know, again, this might be an interesting point of conversation as

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the need for sort of crypto regulation in a, in a uh

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global and potentially coordinated manner.

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Um comes up, you know,

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this is a global technology, maybe a global set of rules needs to be developed.

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And that's what people in the financial world are talking about

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as we speak.

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Uh You know, George, you mentioned Yellen sort of saying, you know,

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CBD CS can check the rise of stable coins themselves.

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I think that was earlier today. Actually, she made those remarks.

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So it's interesting to see all these conversations unfold

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against the backdrop of a pretty uh down market.

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So it's interesting to watch uh regulatory authorities

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figure out what to do best. Anyway, Jen, I saw your hand tossing your way.

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I think a global regulatory body, it makes sense if you,

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you get into the brain of a regulator, right?

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You think like, oh, we have this,

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this thing that we can't regulate because it's borderless and,

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and I can only do what's within

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the realm of my jurisdiction.

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And so it,

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it makes sense that they've come up with

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this solution to have a global regulatory body.

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I think this can only work if there is diversity of opinion, education,

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perspective and experience.

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And I just don't see that happening.

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If we look at how regulation is happening just in

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North America or just even in the US right now,

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we can't get the regulatory bodies within the US to work together.

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And so getting the regulatory bodies within the entire planet, I think is

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an interesting goal and maybe we're focusing our energies on the wrong thing,

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but I think I saw both of the hands above my head go up.

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So I'll let you to fight it out for who goes next.

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I'm

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no, I'll just be brief.

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The government moves very slowly within the borders of a, of a country. A

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big super global government is just, just no way it's gonna move quick enough.

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I mean, we'll get stable coin regulation in 2035. So,

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uh I guess that's a good thing anyway. Zach onto you.

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Yeah. You know, you kind of already have some global bodies, right?

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The financial action task task force,

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right?

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They're out there uh providing guidance for uh you know,

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virtual asset service providers.

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Vass, which is their fancy word for crypto exchanges and other crypto businesses.

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And that process over the last two years has kind of

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shown just how slow sort of global coordination can be,

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right?

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They're out here that the global anti money laundering watchdog,

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they establish rules,

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but then all these different jurisdictions have to implement those rules in a way,

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that kind of makes sense and kind of speaks to a shared set of standards,

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but that process has been really slow going um

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and pretty difficult to execute in a uniform fashion.

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And of course, like in a market of, of countries,

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like some countries are gonna be more uh friendly to crypto,

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they see that as a business opportunity,

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something that can uh improve the standards of their economy and their citizens.

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But others are more hard line and think that's not advantageous for them to do that.

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So it is interesting to think about these global dynamics and whether or not a

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true sort of global regulatory framework could ever

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be imposed on necessarily like global technology.