Chairman Tim Scott Highlights Clarity Act, Previews Senate Banking AI Hearing

[0:01] WELCOME BACK, COINBASE CEO [0:03] BRIAN ARMSTRONG SAYS HE IS SAID [0:05] TO HEAR ABOUT HOW J.P. MORGAN [0:07] CHASE CEO JAMIE DIMOND FEELS [0:08] ABOUT THE CLARITY ACT. [0:10] THIS AFTER JAMIE DIMOND TOLD ME [0:12] HE'S GOING TO FIGHT IT TWO WEEKS [0:14] AGO. [0:14] WATCH THIS. [0:15] ARE YOU HAPPY WITH THE WAY [0:18] THE CLARITY ACT IS TURNING OUT? [0:19] NO. [0:21] NO, BECAUSE IT ALLOWS THEM TO [0:23] EFFECTIVELY PAY INTEREST ON [0:24] DEPOSITS, STABLE COINS, SOMETHING [0:26] LIKE THAT, WITHOUT THE PROTECTION [0:27] THAT THEY SHOULD HAVE. [0:28] AND IT DOESN'T DO ANYTHING FOR [0:30] AMLBSA. [0:30] IT HAS ALMOST NO LEGAL [0:31] PROTECTIONS. [0:32] SO NO, THE BANKS WOULD NOT [0:34] ACCEPT IT THAT WAY. [0:35] AND THE ABA, THE SMALL BANKS, [0:37] THE CREDIT UNIONS, NOT JUST THE [0:38] BIG GUYS. [0:39] I'M NOT WORRIED ABOUT STABLE COIN, [0:41] BUT IF IT HAPPENED, I'M TELLING [0:43] YOU, I WOULD HAVE NOTHING TO DO [0:44] WITH IT, AND IT WOULD EVENTUALLY [0:45] BLOW UP ON ITS OWN. [0:46] OKAY, BUT THAT'S MY PERSONAL [0:47] THING, BUT I DO UNDERSTAND THE [0:49] CONCERN OF ALL THE OTHER BANKS. [0:50] SO. [0:51] WELL, THE MARKUP IS COMING. [0:52] I MEAN, WHAT ARE YOU GOING TO [0:53] DO ABOUT IT? [0:54] WE'LL FIGHT IT. [0:55] NO ONE IS GOING TO BOW DOWN TO [0:57] THIS GUY, OKAY, OR THAT COMPANY. [0:58] HE'S THE ONLY ONE, AND HE'S [0:59] SPENDING HUNDREDS OF MILLIONS [1:00] OF DOLLARS IN WATCHING THIS [1:01] THING. [1:02] HE SAID HE'S REPRESENTING THE [1:03] WHOLE INDUSTRY. [1:04] HE'S FULL OF S***. [1:05] HE'S FULL OF S***. [1:06] HE'S FULL OF S***. [1:08] I'M SURE THAT'S THE MOST [1:09] MILLIONS OF DOLLARS IN [1:13] WATCHING THIS THING. [1:14] HE SAID HE'S REPRESENTING THE [1:15] WHOLE INDUSTRY. [1:16] HE'S FULL OF S***. [1:17] HE'S FULL OF S***. [1:18] HE'S FULL OF S***. [1:19] HE'S FULL OF S***. [1:20] HE'S FULL OF S***. [1:21] HE CLAIMS WILL BE GOOD FOR THE [1:22] BANKS. [1:23] MORE THAN 200 CRYPTO COMPANIES AND [1:25] LOBBYING GROUPS ARE NOW CALLING [1:26] ON THE SENATE TO SCHEDULE A [1:27] FLOOR VOTE ON THE KEY DIGITAL [1:29] ASSET LEGISLATION. [1:30] THANK YOU SO MUCH FOR BEING [1:31] HERE. [1:32] GOOD MORNING, MARIA. [1:33] OBVIOUSLY PEOPLE FEEL LIKE THE [1:35] SENATE IS RUNNING OUT OF TIME TO [1:37] GET THE CLARITY ACT PASSED BEFORE [1:38] THE AUGUST RECESS. [1:39] WHAT'S YOUR REACTION TO WHAT JAMIE [1:41] DIMOND JUST SAID AND WHAT NO [1:42] DOUBT YOU'VE BEEN HEARING FROM [1:43] OTHER MAJOR BANKS? [1:44] IT LOOKS LIKE TO ME THAT JAMIE [1:47] AND BRIAN MIGHT NEED TO SEE SOME [1:48] COUNSELING TOGETHER BECAUSE [1:49] THEY'RE ACTUALLY DISTRACTING [1:50] FROM THE ACTUAL MAIN POINT. [1:52] JAMIE MORE THAN BRIAN, BY THE [1:53] WAY. [1:54] THE FACT OF THE MATTER IS THAT EVEN [1:56] THE FACT THAT J.P. MORGAN IS [1:58] NOW GETTING INVOLVED IN STABLE [2:00] COINS. [2:01] WHY? [2:02] BECAUSE DIGITAL ASSETS IS A PART [2:03] OF THE FUTURE OF FINANCE. [2:04] SO EVERY SINGLE INDUSTRY WILL [2:06] WANT TO BE A PART OF THAT, [2:07] INCLUDING BANKS. [2:08] SO WHAT WE'RE TALKING ABOUT [2:09] TODAY IS HOW DO WE SET THE RULES [2:11] OF THE ROAD SO THAT WE PROTECT [2:13] OUR CONSUMERS. [2:14] JOB ONE IS MAKING SURE THAT [2:16] CONSUMERS ARE PROTECTED. [2:17] JOB TWO, MAKING IT LESS [2:20] EXPENSIVE TO DO BUSINESS IN [2:21] AMERICA AND EASIER TO DO IT [2:23] 24-7. [2:24] WE'RE TALKING ABOUT THIS. [2:26] WE'RE TALKING ABOUT THIS. [2:27] BLOCKCHAIN AND DIGITAL ASSETS [2:29] ALLOWS US TO GET THERE FASTER. [2:31] IT'S COMING, PERIOD. [2:32] WELL, I MEAN, WE WERE JUST [2:34] TALKING WITH MICHAEL SEALIG. [2:35] HE MADE THE POINT THAT WE NEED [2:37] THE FRAMEWORK IN PLACE SO THAT [2:39] THE BUSINESS DOESN'T GO OFFSHORE. [2:40] RIGHT? [2:41] SO THAT WE DON'T SEE A LOT OF [2:43] THESE CRYPTO COMPANIES GO TO [2:44] OTHER COUNTRIES TO ACTUALLY DO [2:45] THIS. [2:46] EXACTLY. [2:47] I WANT TO GET YOUR TAKE ABOUT [2:49] THAT. [2:50] HOW MUCH DO YOU BELIEVE WILL COME [2:52] INTO THE U.S. ONCE WE DO HAVE [2:54] THE CLARITY ACT IN PLACE? [2:56] HOW MUCH, HOW SIGNIFICANT IS [2:58] THE BUSINESS IF, IN FACT, THOSE [3:02] COMPANIES DON'T GO OFFSHORE? [3:03] WHAT DO YOU THINK? [3:04] WHAT DO YOU THINK? [3:05] WHAT DO YOU THINK? [3:06] I'VE ESTIMATED THAT THE ACTUAL [3:08] SECTOR ITSELF, THE INDUSTRY, IS [3:10] WORTH ABOUT $3 TRILLION NOW. [3:11] I THINK IT'S GOING TO $30 TRILLION [3:13] IN THE NEXT SEVERAL YEARS. [3:14] THE TRUTH OF THE MATTER IS THAT [3:16] WE CAN EITHER LEAD IN AMERICA OR [3:18] WATCH THE DUST FROM A DISTANCE. [3:19] WE'RE NOT GOING TO DO THAT. [3:20] WE'RE GOING TO LEAD IN AMERICA. [3:21] WHY? [3:22] BECAUSE WE'RE AMERICANS. [3:23] MARIA, WE HAVE TO MAKE SURE [3:25] THAT WE HAVE AN ENVIRONMENT THAT [3:27] IS CONDUCIVE FOR THE BRIGHTEST [3:29] ENVIRONMENT. [3:30] WE HAVE TO MAKE SURE THAT WE ARE [3:33] THE ECONOMIC FINANCIAL CAPITAL OF [3:35] THE WORLD FOR ANOTHER GENERATION. [3:37] FRANKLY, WHAT WE'VE ALREADY SEEN, [3:39] MARIA, WITH STABLE COINS IS THAT [3:42] OUR DOLLAR DOMINANCE IS ACTUALLY [3:44] INCREASING MORE THAN $300 BILLION [3:47] OF MORE ACTIVITY AROUND THE WORLD [3:49] BECAUSE OF STABLE COINS. [3:51] AND WHERE IS THE ACTIVITY [3:53] HAPPENING? [3:54] AROUND THE DOLLAR BECAUSE STABLE [3:57] COINS IS NOT GOING TO BE THE [3:59] DOLLAR. [4:00] IT'S NOT GOING TO BE THE [4:01] DOLLAR. [4:02] IT'S NOT GOING TO BE THE DOLLARS [4:04] OR U.S. TREASURY TO BACK EVERY [4:06] SINGLE PENNY THAT YOU FIND IN [4:07] STABLE COINS. [4:08] REALLY GOOD NEWS FOR AMERICA'S [4:10] DOLLAR, REMAINING THE RESERVE [4:11] CURRENCY OF THE WORLD. [4:12] AND IF YOU LOOK INTO THE FUTURE [4:14] BEYOND THAT, SINGLE MOTHERS, [4:15] LIKE THE ONE THAT RAISED ME, [4:17] PEOPLE WORKING PAYCHECK TO [4:19] PAYCHECK, DEMOCRATIZATION [4:20] THROUGH DIGITAL ASSETS WILL [4:22] BRING DOWN THE COST OF [4:24] TRANSACTIONS AND SPEED UP THE [4:27] BANKS AND OR ANYONE ELSE IS NOT [4:29] HOLDING YOUR MONEY AND EARNING [4:30] INTEREST, YOU'LL BE ABLE TO EARN [4:33] THAT INTEREST YOURSELF. [4:34] THIS IS GOOD NEWS. [4:35] YEAH. [4:36] AND THANK YOU FOR KEEPING THE [4:39] DOLLAR AS ONE OF THE BIG [4:41] PRIORITIES FOR YOU IN TERMS OF [4:43] KEEPING EVERYTHING IN PLACE TO [4:44] MAKE SURE IT'S DOMINANT. [4:45] LOOK, WE'VE GOT BREAKING NEWS ON [4:47] THE SCREEN RIGHT NOW, SENATOR. [4:48] YES. [4:49] THE EUROPEAN CENTRAL BANK JUST [4:51] RAISED INTEREST RATES. [4:52] THEY RAISED RATES TO 2.25%. [4:53] IT WAS EXPECTED. [4:54] MOST PEOPLE DID EXPECT A HIGH [4:56] FROM THE ECB BUT OF COURSE WE [4:58] KNOW NEXT WEEK IS KEVIN WARSH'S [4:59] FIRST FED MEETING. [5:00] WHAT ARE YOU EXPECTING FROM THE [5:02] NEW CHAIRMAN OF THE FEDERAL [5:03] RESERVE? [5:04] I THINK WHY IS PROBABLY AS [5:07] IMPORTANT AS WHAT. [5:08] SO WHAT WE SAW THIS LAST [5:10] REPORT IS THAT INFLATION TICKED [5:12] UP TO 4.2%, HIGHEST IN THREE [5:13] YEARS. [5:14] LAST MONTH IT WAS 3.8. [5:15] THE MONTH BEFORE THAT WAS 3.3. [5:17] THE TREND IS NOT GOING IN THE [5:19] RIGHT DIRECTION. [5:20] MARIA, ONE OF THE THINGS IT [5:21] SIGNALS IS RESILIENCY IN OUR [5:22] ECONOMY WHICH IS IN FACT GOOD [5:24] NEWS. [5:25] BECAUSE OF DONALD TRUMP WE HAVE [5:26] MORE AMERICANS WITH MORE [5:28] MONEY IN THEIR POCKETS BECAUSE [5:30] WE RETURN TO THEM OR KEPT IN [5:32] PLACE A $5 TRILLION TAX CUT AND [5:34] YOUR TAX RETURN IS UP 11%. [5:36] SO THERE'S MORE MONEY TO BE SPENT [5:39] ON HOUSEHOLD NECESSITIES. [5:40] SO WE'RE GOING TO HAVE TO FIGURE [5:43] OUT WHAT THE HEDGE AGAINST [5:44] INFLATION LOOKS LIKE. [5:45] I BELIEVE THAT THEY WILL KEEP [5:48] RATES WHERE THEY ARE NEXT WEEK [5:50] AND NOT INCREASE THEM. [5:51] AT LEAST THAT'S MY PRAYER. [5:53] I THINK THAT'S HOW IT'S GOING [5:55] TO WORK OUT BECAUSE ULTIMATELY [5:57] THE ECONOMY IS HEALTHY, IT IS [5:59] STRONG BUT WE STILL SEE MANY [6:01] HEADWINDS. [6:02] MANY CHALLENGES COMING OUR WAY. [6:04] SO KEEPING RATES WHERE THEY ARE [6:06] IS PROBABLY THE BEST THING TO [6:08] DO FROM MY PERSPECTIVE. [6:09] YEAH. [6:10] I MEAN, LOOK, YOU KNOW, THE GOOD [6:13] NEWS ABOUT THE ECONOMY HAS [6:15] SOMETHING TO DO WITH OBVIOUSLY [6:17] A LOT TO DO WITH WHAT YOU ALL [6:19] HAVE DONE WITH THE ONE BIG [6:20] BEAUTIFUL BILL AND THAT WAS SO [6:22] EVIDENT IN THE EARNINGS PERIOD [6:24] THAT WE JUST CAME OFF OF BUT IT [6:26] ALSO HAS TO DO WITH ALL THIS [6:28] ENORMOUS MONEY MOVING INTO [6:30] A.I. [6:32] AND THERE IS SOME WORRY ABOUT [6:34] THAT, YOU KNOW. [6:35] I MEAN, THE SENATE BANKING [6:37] COMMITTEE SET TO HOLD A HEARING [6:38] TODAY ON THE ADVANTAGES AND [6:39] IMPLICATIONS OF A.I. AND ITS [6:40] ROLE IN THE AMERICAN DREAM. [6:42] RANKING MEMBER ELIZABETH WARREN [6:44] INVITING NVIDIA CEO JENSEN [6:46] FWANG TO TESTIFY BUT HE [6:47] DECLINED. [6:48] BUT YOU'VE GOT PEOPLE LIKE [6:50] SENATOR ELIZABETH WARREN AND [6:52] BERNIE SANDERS SAYING WE WANT A [6:54] MORATORIUM ON A.I. [6:55] YOU'VE ALSO GOT SCOTT BESSETT [6:57] CALLING AN EMERGENCY MEETING [6:58] WITH THE MAJOR BANKS SAYING [6:59] LOOK, WE NEED TO GET AHEAD OF [7:02] POTENTIAL UNPREDICTABILITY FROM [7:04] SOME OF THE A.I., AGENTIC A.I. [7:07] PART OF THIS. [7:08] SO WHAT ARE YOUR THOUGHTS ON [7:10] ENSURING THAT WE CAN IN FACT [7:12] GET AHEAD OF POTENTIAL BAD [7:13] ACTORS WHEN IT COMES TO A.I. [7:14] ONE OF THE THINGS I WOULD [7:18] SUGGEST TO MY DEMOCRAT FRIENDS [7:20] IS THAT FEAR THE ACRONYM FALSE [7:23] EVIDENCE APPEARING REAL REALLY [7:25] DOES WORRY THE AMERICAN PEOPLE. [7:27] WHAT THEY NEED MORE OF IS [7:29] CONFIDENCE IN WHAT'S GOING TO [7:30] HAPPEN. [7:31] WE KNOW ARTIFICIAL INTELLIGENCE [7:32] IS COMING. [7:33] THE NUMBER ONE OBJECTIVE WE [7:35] HAVE IS TO PROTECT OUR [7:36] CONSUMERS AND MAKE SURE THEY [7:38] DON'T BEAR THE BURDEN OF HIGHER [7:40] COSTS IN ELECTRICITY OR WATER [7:42] USAGE. [7:43] THAT WOULD BE BAD. [7:45] THAT WOULD BE AHEAD OF THE [7:47] CURVE. [7:48] THAT WOULD BE AHEAD OF THE [7:49] CURVE. [7:50] PRESIDENT TRUMP ONCE AGAIN IS AHEAD [7:52] OF THE CURVE. [7:53] HE'S ALREADY PUT IN PLACE AN [7:55] EXECUTIVE ORDER THAT SAYS YOU [7:57] USE IT, YOU PAY FOR IT. [7:59] DATA CENTERS, PERIOD. [8:00] OUR PRESIDENT IS WORKING ON [8:02] BEHALF OF FOLKS WHO ARE [8:03] STRUGGLING TODAY TO MEET THEIR [8:05] OBLIGATIONS FINANCIALLY. [8:06] NUMBER TWO, WE NEED TO MAKE [8:08] SURE THAT WE PROTECT THE [8:09] AMERICAN WORKER AND MAKE SURE [8:10] THEY DON'T FEEL REPLACEABLE. [8:11] HOW DO WE DO THAT? [8:12] WE NEED TO MAKE SURE THAT WE [8:15] SHOULD BE PUTTING UP. [8:16] OUR WORKERS ARE THE REASONS WHY [8:18] THEY'RE BEING MORE PRODUCTIVE. [8:20] GOOD, HARD WORKERS PLUS [8:22] ARTIFICIAL INTELLIGENCE SHOULD [8:23] MAKE US MORE PRODUCTIVE. [8:24] THAT MEANS INCOMES WILL RISE AND [8:26] WE WILL HAVE A BETTER FUTURE. [8:28] THERE'S A LOT WE HAVE TO [8:30] UNTANGLE ALONG THE WAY AND [8:32] TODAY IS THE FIRST OF MANY [8:34] HEARINGS THAT WE WILL HAVE IN [8:35] THE BANKING COMMITTEE SO THAT [8:36] WE'RE GOING TO MAKE SURE WE [8:38] UNDERSTAND THE IMPLICATIONS OF [8:39] THIS TECHNOLOGY AND WE'RE GOING [8:40] TO MAKE SURE WE UNDERSTAND THE [8:43] IMPLICATIONS OF THIS TECHNOLOGY [8:45] AND WE'RE GOING TO GO INTO IT [8:47] WITH OUR EYES WIDE OPEN AND [8:49] CREATE A REGULATORY ENVIRONMENT [8:51] THAT IS HELPFUL FOR AMERICAN [8:53] COMPANIES, AMERICAN WORKERS AND [8:55] THE FUTURE OF THE COUNTRY. [8:57] THE ONE THING WE ALL AGREE UPON [9:01] LEFT AND RIGHT IS THAT CHINA [9:04] WILL NOT LEAD IN A I.I. [9:06] THE STACK WILL BE BUILT ON [9:10] AMERICAN COMPANIES, AMERICAN [9:11] PRODUCTS AND AMERICAN [9:12] PRODUCTS AND AMERICA'S VISION [9:14] FOR THE FUTURE OF THE WORLD AND [9:16] NOT CHINA'S. [9:17] AND YOU MADE THAT A PRIORITY AND [9:20] WE TALK ABOUT IT ALL THE TIME [9:22] SENATOR, SO THANK YOU. [9:27] A WORD ON HOUSING BECAUSE [9:29] PRESIDENT TRUMP IS URGING THE [9:30] SENATE TO PUT THE HOUSING BILL [9:32] ON THE FLOOR. [9:33] IT WAS AMENDED BY THE HOUSE. [9:35] IT GOT 396 VOTES YES AND THEN [9:37] HE WOULD SIGN IT INTO LAW. [9:39] DO YOU KNOW THE PLAN FOR THAT [9:41] HOUSING BILL? [9:42] I MET YESTERDAY TWO DAYS AGO [9:46] WITH THE LEADERS IN THE HOUSE [9:48] OF REPRESENTATIVES. [9:49] I THINK WE HAVE A WORKABLE [9:51] OPPORTUNITY TO MOVE HOUSING [9:53] TO THE PRESIDENT'S DESK IN THE [9:56] NEXT WEEK OR SO. [9:57] ALL WE NEED IS FOR US TO SAY [10:00] YES. [10:01] WE'RE SAYING YES ON OUR SIDE. [10:03] THEY CAN SAY YES ON THEIR SIDE. [10:05] THE PRESIDENT CAN SIGN THE FINAL [10:07] PRODUCT AND THE AMERICAN PEOPLE [10:09] WHO TODAY AVERAGE AGE OF A [10:11] FIRST-TIME HOME BUYER, A LITTLE [10:13] OVER 40 YEARS OLD, WE CAN SEE [10:15] THAT DROP PRECIPITOUSLY. [10:16] WHAT WILL IT TAKE? [10:18] REPUBLICANS, DEMOCRATS, HOUSE [10:20] AND SENATE WORKING TOGETHER ON [10:21] THE TABLE AND MAINTAINS ALL OF [10:24] THE HOUSE PRODUCT AND MOST OF [10:26] OURS, THE PRESIDENT WILL BE ABLE [10:28] TO SIGN THAT. [10:29] WE NEED TO GET THAT JOB DONE. [10:30] I'M EXCITED ABOUT THAT AND [10:31] VERY OPTIMISTIC THAT WE CAN GET [10:32] IT DONE. [10:33] ALL RIGHT, SENATOR. [10:34] IT'S GREAT TO TALK WITH YOU [10:35] THIS MORNING AS ALWAYS. [10:36] WE SO APPRECIATE YOUR TIME. [10:37] THANK YOU. [10:39] THANK YOU, MARIA. [10:40] YOU'RE REALLY GOOD AT WHAT YOU [10:41] DO. [10:42] GOD BLESS YOU. [10:43] YES, MA'AM. [10:44] THANK YOU, MARIA. [10:45] THANK YOU, MARIA. [10:46] THANK YOU, MARIA.