WEBVTT Kind: captions Language: en 00:00:14.139 --> 00:00:16.029 align:start position:0% my<00:00:15.139> name<00:00:15.259> is<00:00:15.379> Jerry<00:00:15.589> burrito<00:00:15.799> I'm<00:00:15.919> the 00:00:16.029 --> 00:00:16.039 align:start position:0% my name is Jerry burrito I'm the 00:00:16.039 --> 00:00:18.640 align:start position:0% my name is Jerry burrito I'm the executive<00:00:16.460> director<00:00:16.490> of<00:00:17.030> coin<00:00:17.300> Center<00:00:17.650> and 00:00:18.640 --> 00:00:18.650 align:start position:0% executive director of coin Center and 00:00:18.650 --> 00:00:20.230 align:start position:0% executive director of coin Center and first<00:00:19.130> just<00:00:19.220> want<00:00:19.400> to<00:00:19.460> say<00:00:19.610> how<00:00:19.760> grateful<00:00:20.060> we 00:00:20.230 --> 00:00:20.240 align:start position:0% first just want to say how grateful we 00:00:20.240 --> 00:00:22.510 align:start position:0% first just want to say how grateful we are<00:00:20.330> to<00:00:20.480> the<00:00:20.780> etherion<00:00:21.080> foundation<00:00:21.520> for 00:00:22.510 --> 00:00:22.520 align:start position:0% are to the etherion foundation for 00:00:22.520 --> 00:00:24.370 align:start position:0% are to the etherion foundation for having<00:00:22.850> us<00:00:22.940> here<00:00:23.120> today<00:00:23.390> to<00:00:23.540> give<00:00:24.200> you<00:00:24.290> a 00:00:24.370 --> 00:00:24.380 align:start position:0% having us here today to give you a 00:00:24.380 --> 00:00:28.180 align:start position:0% having us here today to give you a little<00:00:24.970> regulatory<00:00:25.970> update<00:00:26.570> I<00:00:27.560> think<00:00:28.100> the 00:00:28.180 --> 00:00:28.190 align:start position:0% little regulatory update I think the 00:00:28.190 --> 00:00:30.370 align:start position:0% little regulatory update I think the first<00:00:28.520> thing<00:00:28.610> I'm<00:00:29.240> gonna<00:00:29.360> do<00:00:29.570> is<00:00:29.840> tell<00:00:30.200> you 00:00:30.370 --> 00:00:30.380 align:start position:0% first thing I'm gonna do is tell you 00:00:30.380 --> 00:00:32.979 align:start position:0% first thing I'm gonna do is tell you about<00:00:31.220> coin<00:00:31.580> Center<00:00:31.820> what<00:00:31.970> we<00:00:32.029> are<00:00:32.210> so<00:00:32.660> Point 00:00:32.979 --> 00:00:32.989 align:start position:0% about coin Center what we are so Point 00:00:32.989 --> 00:00:35.740 align:start position:0% about coin Center what we are so Point Center<00:00:33.200> is<00:00:33.379> an<00:00:34.130> independent<00:00:34.640> nonprofit<00:00:34.910> based 00:00:35.740 --> 00:00:35.750 align:start position:0% Center is an independent nonprofit based 00:00:35.750 --> 00:00:38.170 align:start position:0% Center is an independent nonprofit based in<00:00:35.990> Washington<00:00:36.650> DC<00:00:36.680> that's<00:00:37.670> focused<00:00:38.030> on<00:00:38.120> the 00:00:38.170 --> 00:00:38.180 align:start position:0% in Washington DC that's focused on the 00:00:38.180 --> 00:00:40.450 align:start position:0% in Washington DC that's focused on the public<00:00:38.360> policy<00:00:38.660> issues<00:00:39.200> that<00:00:39.440> affect<00:00:39.710> crypto 00:00:40.450 --> 00:00:40.460 align:start position:0% public policy issues that affect crypto 00:00:40.460 --> 00:00:42.580 align:start position:0% public policy issues that affect crypto currencies<00:00:40.970> and<00:00:41.300> open<00:00:41.780> blockchain<00:00:42.230> networks 00:00:42.580 --> 00:00:42.590 align:start position:0% currencies and open blockchain networks 00:00:42.590 --> 00:00:47.080 align:start position:0% currencies and open blockchain networks like<00:00:42.829> Dario<00:00:43.640> and<00:00:43.940> Bitcoin<00:00:44.300> Z<00:00:44.660> cash<00:00:45.850> and<00:00:46.850> we 00:00:47.080 --> 00:00:47.090 align:start position:0% like Dario and Bitcoin Z cash and we 00:00:47.090 --> 00:00:49.450 align:start position:0% like Dario and Bitcoin Z cash and we really<00:00:47.510> do<00:00:47.690> three<00:00:48.560> things<00:00:48.770> we<00:00:49.070> engage<00:00:49.340> in 00:00:49.450 --> 00:00:49.460 align:start position:0% really do three things we engage in 00:00:49.460 --> 00:00:51.310 align:start position:0% really do three things we engage in education<00:00:49.970> public<00:00:50.329> policy<00:00:50.690> research<00:00:50.810> and 00:00:51.310 --> 00:00:51.320 align:start position:0% education public policy research and 00:00:51.320 --> 00:00:54.250 align:start position:0% education public policy research and advocacy<00:00:52.420> education<00:00:53.420> stories<00:00:53.960> spend<00:00:54.110> a<00:00:54.140> lot 00:00:54.250 --> 00:00:54.260 align:start position:0% advocacy education stories spend a lot 00:00:54.260 --> 00:00:56.950 align:start position:0% advocacy education stories spend a lot of<00:00:54.290> our<00:00:54.470> time<00:00:54.649> and<00:00:55.579> what<00:00:56.120> that<00:00:56.149> means<00:00:56.420> is<00:00:56.660> we 00:00:56.950 --> 00:00:56.960 align:start position:0% of our time and what that means is we 00:00:56.960 --> 00:00:59.170 align:start position:0% of our time and what that means is we seek<00:00:57.620> to<00:00:57.800> educate<00:00:57.940> policymakers<00:00:58.940> whether 00:00:59.170 --> 00:00:59.180 align:start position:0% seek to educate policymakers whether 00:00:59.180 --> 00:01:01.229 align:start position:0% seek to educate policymakers whether they're<00:00:59.390> members<00:00:59.540> of<00:00:59.780> Congress<00:01:00.170> their<00:01:00.350> staff 00:01:01.229 --> 00:01:01.239 align:start position:0% they're members of Congress their staff 00:01:01.239 --> 00:01:04.450 align:start position:0% they're members of Congress their staff folks<00:01:02.239> at<00:01:02.450> different<00:01:03.260> agencies<00:01:03.530> so<00:01:04.280> they 00:01:04.450 --> 00:01:04.460 align:start position:0% folks at different agencies so they 00:01:04.460 --> 00:01:06.340 align:start position:0% folks at different agencies so they understand<00:01:04.879> the<00:01:04.939> technology<00:01:05.449> so<00:01:05.900> much<00:01:06.110> of 00:01:06.340 --> 00:01:06.350 align:start position:0% understand the technology so much of 00:01:06.350 --> 00:01:09.340 align:start position:0% understand the technology so much of what<00:01:06.620> can<00:01:06.740> go<00:01:06.830> wrong<00:01:07.330> with<00:01:08.330> regulation<00:01:08.870> is<00:01:09.049> not 00:01:09.340 --> 00:01:09.350 align:start position:0% what can go wrong with regulation is not 00:01:09.350 --> 00:01:10.840 align:start position:0% what can go wrong with regulation is not out<00:01:09.560> of<00:01:09.590> malice<00:01:09.830> but<00:01:10.220> out<00:01:10.370> of<00:01:10.400> ignorance<00:01:10.820> we 00:01:10.840 --> 00:01:10.850 align:start position:0% out of malice but out of ignorance we 00:01:10.850 --> 00:01:11.560 align:start position:0% out of malice but out of ignorance we want<00:01:11.000> to<00:01:11.060> make<00:01:11.150> sure<00:01:11.210> they<00:01:11.330> have<00:01:11.420> a<00:01:11.450> good 00:01:11.560 --> 00:01:11.570 align:start position:0% want to make sure they have a good 00:01:11.570 --> 00:01:13.680 align:start position:0% want to make sure they have a good understanding<00:01:11.810> the<00:01:12.770> second<00:01:13.040> thing<00:01:13.130> we<00:01:13.220> do<00:01:13.370> is 00:01:13.680 --> 00:01:13.690 align:start position:0% understanding the second thing we do is 00:01:13.690 --> 00:01:16.480 align:start position:0% understanding the second thing we do is policy<00:01:14.690> research<00:01:15.140> so<00:01:15.530> we<00:01:15.920> engage<00:01:16.220> in<00:01:16.400> the 00:01:16.480 --> 00:01:16.490 align:start position:0% policy research so we engage in the 00:01:16.490 --> 00:01:18.340 align:start position:0% policy research so we engage in the policy<00:01:16.850> thinking<00:01:17.090> to<00:01:17.240> develop<00:01:17.570> what 00:01:18.340 --> 00:01:18.350 align:start position:0% policy thinking to develop what 00:01:18.350 --> 00:01:21.520 align:start position:0% policy thinking to develop what regulatory<00:01:19.220> frameworks<00:01:19.670> could<00:01:20.659> exist<00:01:21.020> that 00:01:21.520 --> 00:01:21.530 align:start position:0% regulatory frameworks could exist that 00:01:21.530 --> 00:01:23.080 align:start position:0% regulatory frameworks could exist that help<00:01:21.710> regulators<00:01:22.130> meet<00:01:22.400> their<00:01:22.610> ends<00:01:22.909> because 00:01:23.080 --> 00:01:23.090 align:start position:0% help regulators meet their ends because 00:01:23.090 --> 00:01:24.789 align:start position:0% help regulators meet their ends because they're<00:01:23.270> gonna<00:01:23.360> you<00:01:24.049> know<00:01:24.140> find<00:01:24.380> a<00:01:24.440> way<00:01:24.530> to<00:01:24.590> do 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freedom to innovate and to 00:01:29.690 --> 00:01:31.840 align:start position:0% possible the freedom to innovate and to avoid<00:01:29.869> unintended<00:01:30.380> consequences<00:01:31.100> and<00:01:31.520> then 00:01:31.840 --> 00:01:31.850 align:start position:0% avoid unintended consequences and then 00:01:31.850 --> 00:01:33.609 align:start position:0% avoid unintended consequences and then the<00:01:31.909> last<00:01:32.030> thing<00:01:32.180> we<00:01:32.270> do<00:01:32.420> is<00:01:32.630> we<00:01:33.049> advocate<00:01:33.409> for 00:01:33.609 --> 00:01:33.619 align:start position:0% the last thing we do is we advocate for 00:01:33.619 --> 00:01:35.830 align:start position:0% the last thing we do is we advocate for the<00:01:33.920> solutions<00:01:34.460> we<00:01:34.549> try<00:01:34.670> to<00:01:34.729> get<00:01:34.880> them<00:01:34.970> into 00:01:35.830 --> 00:01:35.840 align:start position:0% the solutions we try to get them into 00:01:35.840 --> 00:01:38.530 align:start position:0% the solutions we try to get them into law<00:01:35.990> or<00:01:36.170> we<00:01:36.290> try<00:01:36.439> to<00:01:36.500> get<00:01:36.710> laws<00:01:36.950> not<00:01:37.280> passed<00:01:37.540> so 00:01:38.530 --> 00:01:38.540 align:start position:0% law or we try to get laws not passed so 00:01:38.540 --> 00:01:39.940 align:start position:0% law or we try to get laws not passed so I<00:01:38.840> guess<00:01:39.140> I<00:01:39.229> should<00:01:39.350> get<00:01:39.439> the<00:01:39.530> clicker<00:01:39.740> from 00:01:39.940 --> 00:01:39.950 align:start position:0% I guess I should get the clicker from 00:01:39.950 --> 00:01:46.899 align:start position:0% I guess I should get the clicker from you<00:01:40.040> Peter<00:01:42.400> so<00:01:43.400> today<00:01:44.979> I'm<00:01:45.979> gonna<00:01:46.430> give<00:01:46.700> you<00:01:46.880> a 00:01:46.899 --> 00:01:46.909 align:start position:0% you Peter so today I'm gonna give you a 00:01:46.909 --> 00:01:48.460 align:start position:0% you Peter so today I'm gonna give you a little<00:01:47.240> year<00:01:47.689> in<00:01:47.780> review<00:01:47.930> of<00:01:48.140> what<00:01:48.229> we've<00:01:48.350> done 00:01:48.460 --> 00:01:48.470 align:start position:0% little year in review of what we've done 00:01:48.470 --> 00:01:51.070 align:start position:0% little year in review of what we've done over<00:01:48.530> the<00:01:48.710> past<00:01:48.850> year<00:01:49.850> so<00:01:50.540> the<00:01:50.810> first<00:01:50.990> thing 00:01:51.070 --> 00:01:51.080 align:start position:0% over the past year so the first thing 00:01:51.080 --> 00:01:52.780 align:start position:0% over the past year so the first thing I'm<00:01:51.140> going<00:01:51.229> to<00:01:51.290> talk<00:01:51.470> about<00:01:51.500> is<00:01:51.950> state<00:01:52.549> money 00:01:52.780 --> 00:01:52.790 align:start position:0% I'm going to talk about is state money 00:01:52.790 --> 00:01:55.859 align:start position:0% I'm going to talk about is state money transmission<00:01:53.210> licensing<00:01:53.990> which<00:01:54.470> really<00:01:54.979> is 00:01:55.859 --> 00:01:55.869 align:start position:0% transmission licensing which really is 00:01:55.869 --> 00:01:58.510 align:start position:0% transmission licensing which really is one<00:01:56.869> of<00:01:56.960> the<00:01:57.049> biggest<00:01:57.350> regulatory<00:01:57.890> hurdles<00:01:58.280> or 00:01:58.510 --> 00:01:58.520 align:start position:0% one of the biggest regulatory hurdles or 00:01:58.520 --> 00:01:59.770 align:start position:0% one of the biggest regulatory hurdles or impediments<00:01:59.090> for<00:01:59.240> the<00:01:59.390> growth<00:01:59.540> of<00:01:59.600> this 00:01:59.770 --> 00:01:59.780 align:start position:0% impediments for the growth of this 00:01:59.780 --> 00:02:01.630 align:start position:0% impediments for the growth of this ecosystem<00:02:00.530> and<00:02:00.860> that's<00:02:01.340> for<00:02:01.490> two<00:02:01.610> reasons 00:02:01.630 --> 00:02:01.640 align:start position:0% ecosystem and that's for two reasons 00:02:01.640 --> 00:02:05.289 align:start position:0% ecosystem and that's for two reasons number<00:02:02.210> one<00:02:03.159> it's<00:02:04.159> looking<00:02:04.700> at<00:02:04.820> these<00:02:04.970> laws 00:02:05.289 --> 00:02:05.299 align:start position:0% number one it's looking at these laws 00:02:05.299 --> 00:02:06.670 align:start position:0% number one it's looking at these laws which<00:02:05.659> are<00:02:05.780> written<00:02:05.900> in<00:02:06.140> the<00:02:06.229> 50s<00:02:06.530> and<00:02:06.619> 60s 00:02:06.670 --> 00:02:06.680 align:start position:0% which are written in the 50s and 60s 00:02:06.680 --> 00:02:08.710 align:start position:0% which are written in the 50s and 60s it's<00:02:07.460> really<00:02:07.700> difficult<00:02:07.850> to<00:02:08.090> know<00:02:08.299> whether 00:02:08.710 --> 00:02:08.720 align:start position:0% it's really difficult to know whether 00:02:08.720 --> 00:02:10.340 align:start position:0% it's really difficult to know whether you 00:02:10.340 --> 00:02:10.350 align:start position:0% you 00:02:10.350 --> 00:02:12.470 align:start position:0% you need<00:02:10.740> to<00:02:10.830> get<00:02:10.950> a<00:02:10.979> license<00:02:11.400> in<00:02:11.610> each<00:02:12.030> state<00:02:12.270> or 00:02:12.470 --> 00:02:12.480 align:start position:0% need to get a license in each state or 00:02:12.480 --> 00:02:15.200 align:start position:0% need to get a license in each state or not<00:02:12.920> and<00:02:13.920> number<00:02:14.310> two<00:02:14.460> if<00:02:14.670> you<00:02:14.730> need<00:02:14.760> to<00:02:15.060> get<00:02:15.150> a 00:02:15.200 --> 00:02:15.210 align:start position:0% not and number two if you need to get a 00:02:15.210 --> 00:02:16.730 align:start position:0% not and number two if you need to get a license<00:02:15.600> it's<00:02:15.840> very<00:02:16.050> difficult<00:02:16.320> to<00:02:16.440> comply 00:02:16.730 --> 00:02:16.740 align:start position:0% license it's very difficult to comply 00:02:16.740 --> 00:02:19.550 align:start position:0% license it's very difficult to comply with<00:02:17.520> those<00:02:17.640> rules<00:02:17.880> and<00:02:18.270> so<00:02:18.810> we're<00:02:18.960> very<00:02:18.990> happy 00:02:19.550 --> 00:02:19.560 align:start position:0% with those rules and so we're very happy 00:02:19.560 --> 00:02:21.170 align:start position:0% with those rules and so we're very happy that<00:02:19.800> over<00:02:20.280> the<00:02:20.370> past<00:02:20.520> two<00:02:20.730> years<00:02:20.760> we've 00:02:21.170 --> 00:02:21.180 align:start position:0% that over the past two years we've 00:02:21.180 --> 00:02:22.490 align:start position:0% that over the past two years we've worked<00:02:21.390> with<00:02:21.510> the<00:02:21.570> Uniform<00:02:21.990> Law<00:02:22.140> Commission 00:02:22.490 --> 00:02:22.500 align:start position:0% worked with the Uniform Law Commission 00:02:22.500 --> 00:02:25.840 align:start position:0% worked with the Uniform Law Commission to<00:02:23.100> develop<00:02:23.460> a<00:02:23.610> model<00:02:23.910> state<00:02:24.300> act<00:02:24.770> for 00:02:25.840 --> 00:02:25.850 align:start position:0% to develop a model state act for 00:02:25.850 --> 00:02:27.560 align:start position:0% to develop a model state act for regulation<00:02:26.850> of<00:02:26.910> virtual<00:02:27.210> currency 00:02:27.560 --> 00:02:27.570 align:start position:0% regulation of virtual currency 00:02:27.570 --> 00:02:29.720 align:start position:0% regulation of virtual currency businesses<00:02:28.080> and<00:02:28.800> so<00:02:28.920> this<00:02:29.130> would<00:02:29.310> supplant 00:02:29.720 --> 00:02:29.730 align:start position:0% businesses and so this would supplant 00:02:29.730 --> 00:02:31.580 align:start position:0% businesses and so this would supplant the<00:02:29.970> existing<00:02:30.330> money<00:02:30.450> transmission<00:02:31.020> licenses 00:02:31.580 --> 00:02:31.590 align:start position:0% the existing money transmission licenses 00:02:31.590 --> 00:02:32.810 align:start position:0% the existing money transmission licenses in<00:02:31.680> the<00:02:31.770> states<00:02:31.950> this<00:02:32.340> would<00:02:32.460> supplant 00:02:32.810 --> 00:02:32.820 align:start position:0% in the states this would supplant 00:02:32.820 --> 00:02:35.000 align:start position:0% in the states this would supplant something<00:02:33.120> like<00:02:33.240> the<00:02:33.360> bit<00:02:33.510> license<00:02:33.900> and<00:02:34.140> we're 00:02:35.000 --> 00:02:35.010 align:start position:0% something like the bit license and we're 00:02:35.010 --> 00:02:37.190 align:start position:0% something like the bit license and we're excited<00:02:35.250> about<00:02:35.520> is<00:02:35.760> that<00:02:35.790> we've<00:02:36.120> been<00:02:36.930> able<00:02:37.020> to 00:02:37.190 --> 00:02:37.200 align:start position:0% excited about is that we've been able to 00:02:37.200 --> 00:02:39.770 align:start position:0% excited about is that we've been able to include<00:02:37.620> in<00:02:38.040> the<00:02:38.490> Scindia<00:02:39.030> model<00:02:39.450> act<00:02:39.600> a 00:02:39.770 --> 00:02:39.780 align:start position:0% include in the Scindia model act a 00:02:39.780 --> 00:02:41.150 align:start position:0% include in the Scindia model act a definition<00:02:40.230> of<00:02:40.320> control<00:02:40.680> which<00:02:40.890> is<00:02:40.980> very 00:02:41.150 --> 00:02:41.160 align:start position:0% definition of control which is very 00:02:41.160 --> 00:02:44.210 align:start position:0% definition of control which is very important<00:02:42.170> only<00:02:43.170> if<00:02:43.320> you<00:02:43.440> have<00:02:43.650> control<00:02:44.100> only 00:02:44.210 --> 00:02:44.220 align:start position:0% important only if you have control only 00:02:44.220 --> 00:02:45.980 align:start position:0% important only if you have control only if<00:02:44.400> you<00:02:44.490> take<00:02:44.700> control<00:02:44.880> of<00:02:45.360> others 00:02:45.980 --> 00:02:45.990 align:start position:0% if you take control of others 00:02:45.990 --> 00:02:47.630 align:start position:0% if you take control of others cryptocurrency<00:02:46.500> do<00:02:47.190> you<00:02:47.280> need<00:02:47.430> to<00:02:47.490> get<00:02:47.610> a 00:02:47.630 --> 00:02:47.640 align:start position:0% cryptocurrency do you need to get a 00:02:47.640 --> 00:02:49.820 align:start position:0% cryptocurrency do you need to get a license<00:02:48.000> if<00:02:48.750> you<00:02:48.959> never<00:02:49.320> take<00:02:49.530> control<00:02:49.740> of 00:02:49.820 --> 00:02:49.830 align:start position:0% license if you never take control of 00:02:49.830 --> 00:02:51.530 align:start position:0% license if you never take control of somebody's<00:02:50.130> cryptocurrency<00:02:50.580> you<00:02:51.209> don't<00:02:51.390> need 00:02:51.530 --> 00:02:51.540 align:start position:0% somebody's cryptocurrency you don't need 00:02:51.540 --> 00:02:53.780 align:start position:0% somebody's cryptocurrency you don't need to<00:02:51.630> get<00:02:51.750> a<00:02:51.780> license<00:02:52.140> under<00:02:52.410> this<00:02:52.740> act<00:02:53.100> and<00:02:53.400> we 00:02:53.780 --> 00:02:53.790 align:start position:0% to get a license under this act and we 00:02:53.790 --> 00:02:58.580 align:start position:0% to get a license under this act and we define<00:02:54.270> control<00:02:54.950> as<00:02:56.330> the<00:02:57.330> power<00:02:57.690> to<00:02:57.870> execute 00:02:58.580 --> 00:02:58.590 align:start position:0% define control as the power to execute 00:02:58.590 --> 00:03:00.260 align:start position:0% define control as the power to execute unilaterally<00:02:59.280> or<00:02:59.430> prevent<00:02:59.760> and<00:02:59.940> definitely 00:03:00.260 --> 00:03:00.270 align:start position:0% unilaterally or prevent and definitely 00:03:00.270 --> 00:03:03.530 align:start position:0% unilaterally or prevent and definitely in<00:03:00.720> virtual<00:03:01.140> currency<00:03:01.530> transaction<00:03:02.390> and<00:03:03.390> the 00:03:03.530 --> 00:03:03.540 align:start position:0% in virtual currency transaction and the 00:03:03.540 --> 00:03:05.510 align:start position:0% in virtual currency transaction and the next<00:03:03.780> thing<00:03:03.990> that<00:03:04.290> we're<00:03:04.770> excited<00:03:04.980> about<00:03:05.190> is 00:03:05.510 --> 00:03:05.520 align:start position:0% next thing that we're excited about is 00:03:05.520 --> 00:03:06.980 align:start position:0% next thing that we're excited about is we're<00:03:05.670> able<00:03:05.850> to<00:03:06.030> get<00:03:06.120> a<00:03:06.180> bunch<00:03:06.390> of<00:03:06.450> exemptions 00:03:06.980 --> 00:03:06.990 align:start position:0% we're able to get a bunch of exemptions 00:03:06.990 --> 00:03:10.100 align:start position:0% we're able to get a bunch of exemptions into<00:03:07.470> the<00:03:07.740> act<00:03:07.890> and<00:03:08.420> among<00:03:09.420> them<00:03:09.600> is<00:03:09.780> something 00:03:10.100 --> 00:03:10.110 align:start position:0% into the act and among them is something 00:03:10.110 --> 00:03:12.440 align:start position:0% into the act and among them is something that<00:03:10.500> is<00:03:10.709> a<00:03:10.740> personal<00:03:11.310> exemption<00:03:11.700> so<00:03:11.880> anybody 00:03:12.440 --> 00:03:12.450 align:start position:0% that is a personal exemption so anybody 00:03:12.450 --> 00:03:13.910 align:start position:0% that is a personal exemption so anybody who<00:03:12.660> is<00:03:12.780> using<00:03:12.959> virtual<00:03:13.290> currency<00:03:13.620> on<00:03:13.769> their 00:03:13.910 --> 00:03:13.920 align:start position:0% who is using virtual currency on their 00:03:13.920 --> 00:03:16.250 align:start position:0% who is using virtual currency on their own<00:03:14.040> behalf<00:03:14.220> or<00:03:14.880> for<00:03:15.510> personal<00:03:15.900> family<00:03:16.080> or 00:03:16.250 --> 00:03:16.260 align:start position:0% own behalf or for personal family or 00:03:16.260 --> 00:03:17.750 align:start position:0% own behalf or for personal family or household<00:03:16.590> purposes<00:03:16.680> or<00:03:17.160> as<00:03:17.190> for<00:03:17.400> academic 00:03:17.750 --> 00:03:17.760 align:start position:0% household purposes or as for academic 00:03:17.760 --> 00:03:19.580 align:start position:0% household purposes or as for academic purposes<00:03:17.880> are<00:03:18.540> completely<00:03:19.050> excluded<00:03:19.260> from 00:03:19.580 --> 00:03:19.590 align:start position:0% purposes are completely excluded from 00:03:19.590 --> 00:03:21.470 align:start position:0% purposes are completely excluded from any<00:03:19.800> kind<00:03:19.950> of<00:03:20.040> licensing<00:03:20.550> requirements<00:03:21.360> and 00:03:21.470 --> 00:03:21.480 align:start position:0% any kind of licensing requirements and 00:03:21.480 --> 00:03:24.229 align:start position:0% any kind of licensing requirements and so<00:03:21.989> what<00:03:22.350> does<00:03:22.440> that<00:03:22.470> get<00:03:22.739> you<00:03:22.890> if<00:03:23.880> you<00:03:24.000> do<00:03:24.120> not 00:03:24.229 --> 00:03:24.239 align:start position:0% so what does that get you if you do not 00:03:24.239 --> 00:03:26.120 align:start position:0% so what does that get you if you do not have<00:03:24.450> control<00:03:24.739> you<00:03:25.739> don't<00:03:25.800> need<00:03:25.950> to<00:03:26.010> get 00:03:26.120 --> 00:03:26.130 align:start position:0% have control you don't need to get 00:03:26.130 --> 00:03:27.590 align:start position:0% have control you don't need to get licensed<00:03:26.640> that<00:03:26.820> means<00:03:27.090> that<00:03:27.269> wallet 00:03:27.590 --> 00:03:27.600 align:start position:0% licensed that means that wallet 00:03:27.600 --> 00:03:29.800 align:start position:0% licensed that means that wallet developers<00:03:28.050> validators<00:03:28.650> de<00:03:28.860> channel<00:03:29.220> notes 00:03:29.800 --> 00:03:29.810 align:start position:0% developers validators de channel notes 00:03:29.810 --> 00:03:32.479 align:start position:0% developers validators de channel notes exchanges<00:03:30.810> are<00:03:30.930> non-custodial<00:03:31.290> all<00:03:31.800> excluded 00:03:32.479 --> 00:03:32.489 align:start position:0% exchanges are non-custodial all excluded 00:03:32.489 --> 00:03:35.570 align:start position:0% exchanges are non-custodial all excluded and<00:03:32.790> with<00:03:33.510> the<00:03:33.720> personal<00:03:34.470> exemption<00:03:35.010> it<00:03:35.370> means 00:03:35.570 --> 00:03:35.580 align:start position:0% and with the personal exemption it means 00:03:35.580 --> 00:03:36.680 align:start position:0% and with the personal exemption it means that<00:03:35.700> if<00:03:35.760> you're<00:03:35.850> an<00:03:35.940> individual<00:03:36.269> holder<00:03:36.570> of 00:03:36.680 --> 00:03:36.690 align:start position:0% that if you're an individual holder of 00:03:36.690 --> 00:03:37.940 align:start position:0% that if you're an individual holder of course<00:03:36.930> but<00:03:37.170> also<00:03:37.290> of<00:03:37.470> your<00:03:37.560> corporate 00:03:37.940 --> 00:03:37.950 align:start position:0% course but also of your corporate 00:03:37.950 --> 00:03:40.789 align:start position:0% course but also of your corporate institutional<00:03:38.430> investor<00:03:38.790> and<00:03:39.239> academic<00:03:39.810> or 00:03:40.789 --> 00:03:40.799 align:start position:0% institutional investor and academic or 00:03:40.799 --> 00:03:43.400 align:start position:0% institutional investor and academic or even<00:03:41.100> if<00:03:41.190> you<00:03:41.310> are<00:03:41.840> creating<00:03:42.840> and<00:03:43.019> selling<00:03:43.230> a 00:03:43.400 --> 00:03:43.410 align:start position:0% even if you are creating and selling a 00:03:43.410 --> 00:03:45.320 align:start position:0% even if you are creating and selling a new<00:03:43.560> token<00:03:43.799> and<00:03:44.220> so<00:03:44.400> they're<00:03:44.730> your<00:03:44.910> tokens 00:03:45.320 --> 00:03:45.330 align:start position:0% new token and so they're your tokens 00:03:45.330 --> 00:03:46.910 align:start position:0% new token and so they're your tokens that<00:03:45.390> you're<00:03:45.570> selling<00:03:45.959> you<00:03:46.680> would<00:03:46.799> be 00:03:46.910 --> 00:03:46.920 align:start position:0% that you're selling you would be 00:03:46.920 --> 00:03:49.160 align:start position:0% that you're selling you would be excluded<00:03:47.400> from<00:03:47.790> licensing<00:03:48.330> this<00:03:48.840> was<00:03:48.989> not 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not<00:04:09.209> is<00:04:09.780> going<00:04:10.019> to<00:04:10.080> be<00:04:10.230> valuable<00:04:10.820> going 00:04:11.810 --> 00:04:11.820 align:start position:0% not is going to be valuable going 00:04:11.820 --> 00:04:14.750 align:start position:0% not is going to be valuable going forward<00:04:12.239> so<00:04:12.540> if<00:04:12.780> you<00:04:12.930> think<00:04:13.140> about<00:04:13.380> as<00:04:14.310> Europe 00:04:14.750 --> 00:04:14.760 align:start position:0% forward so if you think about as Europe 00:04:14.760 --> 00:04:16.849 align:start position:0% forward so if you think about as Europe looks<00:04:15.630> to<00:04:15.780> amend<00:04:16.080> its<00:04:16.290> fourth<00:04:16.500> anti-money 00:04:16.849 --> 00:04:16.859 align:start position:0% looks to amend its fourth anti-money 00:04:16.859 --> 00:04:18.320 align:start position:0% looks to amend its fourth anti-money laundering<00:04:16.890> directive<00:04:17.549> they're<00:04:18.120> going<00:04:18.270> to 00:04:18.320 --> 00:04:18.330 align:start position:0% laundering directive they're going to 00:04:18.330 --> 00:04:19.710 align:start position:0% laundering directive they're going to need<00:04:18.390> a<00:04:18.450> definition<00:04:19.109> of 00:04:19.710 --> 00:04:19.720 align:start position:0% need a definition of 00:04:19.720 --> 00:04:21.840 align:start position:0% need a definition of was<00:04:19.810> an<00:04:19.900> intermediary<00:04:20.410> that<00:04:21.340> should<00:04:21.790> be 00:04:21.840 --> 00:04:21.850 align:start position:0% was an intermediary that should be 00:04:21.850 --> 00:04:23.430 align:start position:0% was an intermediary that should be regulated<00:04:22.330> who<00:04:22.420> was<00:04:22.570> not<00:04:22.720> and<00:04:22.960> our<00:04:23.050> definition 00:04:23.430 --> 00:04:23.440 align:start position:0% regulated who was not and our definition 00:04:23.440 --> 00:04:24.060 align:start position:0% regulated who was not and our definition of<00:04:23.500> control 00:04:24.060 --> 00:04:24.070 align:start position:0% of control 00:04:24.070 --> 00:04:26.460 align:start position:0% of control helps<00:04:24.460> you<00:04:24.550> get<00:04:24.700> there<00:04:25.140> when<00:04:26.140> China<00:04:26.380> is 00:04:26.460 --> 00:04:26.470 align:start position:0% helps you get there when China is 00:04:26.470 --> 00:04:28.230 align:start position:0% helps you get there when China is looking<00:04:26.710> to<00:04:26.800> regulate<00:04:27.130> exchanges<00:04:27.670> it's<00:04:28.120> gonna 00:04:28.230 --> 00:04:28.240 align:start position:0% looking to regulate exchanges it's gonna 00:04:28.240 --> 00:04:30.480 align:start position:0% looking to regulate exchanges it's gonna help<00:04:28.450> there<00:04:28.720> as<00:04:29.350> well<00:04:29.500> the<00:04:30.160> next<00:04:30.280> thing<00:04:30.430> I 00:04:30.480 --> 00:04:30.490 align:start position:0% help there as well the next thing I 00:04:30.490 --> 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to develop and introduce a bill<00:04:37.840> in<00:04:37.990> Congress<00:04:38.020> that<00:04:38.920> will<00:04:39.070> create<00:04:39.280> a<00:04:39.520> de 00:04:39.660 --> 00:04:39.670 align:start position:0% bill in Congress that will create a de 00:04:39.670 --> 00:04:42.000 align:start position:0% bill in Congress that will create a de minimis<00:04:39.880> exemption<00:04:40.230> for<00:04:41.230> capital<00:04:41.590> gains<00:04:41.740> tax 00:04:42.000 --> 00:04:42.010 align:start position:0% minimis exemption for capital gains tax 00:04:42.010 --> 00:04:43.830 align:start position:0% minimis exemption for capital gains tax of<00:04:42.190> cryptocurrency<00:04:42.580> so<00:04:43.300> as<00:04:43.390> you<00:04:43.480> might<00:04:43.660> know 00:04:43.830 --> 00:04:43.840 align:start position:0% of cryptocurrency so as you might know 00:04:43.840 --> 00:04:46.470 align:start position:0% of cryptocurrency so as you might know if<00:04:44.140> you<00:04:44.310> buy<00:04:45.310> a<00:04:45.340> cup<00:04:45.580> of<00:04:45.700> coffee<00:04:45.850> with<00:04:46.120> Bitcoin 00:04:46.470 --> 00:04:46.480 align:start position:0% if you buy a cup of coffee with Bitcoin 00:04:46.480 --> 00:04:49.560 align:start position:0% if you buy a cup of coffee with Bitcoin or<00:04:46.750> even<00:04:47.200> potentially<00:04:47.800> if<00:04:47.980> you<00:04:48.490> use<00:04:49.240> some 00:04:49.560 --> 00:04:49.570 align:start position:0% or even potentially if you use some 00:04:49.570 --> 00:04:52.050 align:start position:0% or even potentially if you use some ether<00:04:49.870> to<00:04:50.470> run<00:04:50.650> a<00:04:50.680> smart<00:04:50.890> contract<00:04:51.100> those 00:04:52.050 --> 00:04:52.060 align:start position:0% ether to run a smart contract those 00:04:52.060 --> 00:04:54.420 align:start position:0% ether to run a smart contract those events<00:04:52.390> are<00:04:52.600> taxable<00:04:53.410> dispositions<00:04:54.250> of 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minimis<00:05:09.190> exemption<00:05:09.400> of<00:05:09.960> $600<00:05:10.960> any 00:05:11.430 --> 00:05:11.440 align:start position:0% minimis exemption of $600 any 00:05:11.440 --> 00:05:14.310 align:start position:0% minimis exemption of $600 any transaction<00:05:12.100> below<00:05:12.280> $600<00:05:13.150> you<00:05:13.810> don't<00:05:13.990> have<00:05:14.140> to 00:05:14.310 --> 00:05:14.320 align:start position:0% transaction below $600 you don't have to 00:05:14.320 --> 00:05:15.630 align:start position:0% transaction below $600 you don't have to report<00:05:14.650> it<00:05:14.830> you<00:05:14.980> don't<00:05:15.130> have<00:05:15.190> to<00:05:15.400> keep<00:05:15.520> track 00:05:15.630 --> 00:05:15.640 align:start position:0% report it you don't have to keep track 00:05:15.640 --> 00:05:17.460 align:start position:0% report it you don't have to keep track of<00:05:15.760> it<00:05:15.940> you<00:05:16.150> don't<00:05:16.300> have<00:05:16.360> to<00:05:16.450> pay<00:05:16.630> taxes<00:05:17.050> on<00:05:17.169> and 00:05:17.460 --> 00:05:17.470 align:start position:0% of it you don't have to pay taxes on and 00:05:17.470 --> 00:05:19.020 align:start position:0% of it you don't have to pay taxes on and so<00:05:17.950> we're<00:05:18.310> hoping<00:05:18.520> we<00:05:18.640> can<00:05:18.669> get<00:05:18.910> this 00:05:19.020 --> 00:05:19.030 align:start position:0% so we're hoping we can get this 00:05:19.030 --> 00:05:20.880 align:start position:0% so we're hoping we can get this attribute<00:05:19.450> passed<00:05:19.720> as<00:05:19.960> law<00:05:20.169> it's<00:05:20.680> gonna<00:05:20.770> be 00:05:20.880 --> 00:05:20.890 align:start position:0% attribute passed as law it's gonna be 00:05:20.890 --> 00:05:25.409 align:start position:0% attribute passed as law it's gonna be difficult<00:05:21.070> but<00:05:21.490> we're<00:05:22.210> optimistic<00:05:24.419> next 00:05:25.409 --> 00:05:25.419 align:start position:0% difficult but we're optimistic next 00:05:25.419 --> 00:05:27.180 align:start position:0% difficult but we're optimistic next thing<00:05:25.510> we<00:05:25.600> talked<00:05:25.870> about<00:05:25.960> is<00:05:26.380> securities<00:05:26.860> so 00:05:27.180 --> 00:05:27.190 align:start position:0% thing we talked about is securities so 00:05:27.190 --> 00:05:29.090 align:start position:0% thing we talked about is securities so last<00:05:27.640> year<00:05:27.910> at<00:05:27.970> this<00:05:28.120> conference<00:05:28.330> Peter 00:05:29.090 --> 00:05:29.100 align:start position:0% last year at this conference Peter 00:05:29.100 --> 00:05:31.980 align:start position:0% last year at this conference Peter explained<00:05:30.100> to<00:05:30.220> you<00:05:30.400> our<00:05:30.810> framework<00:05:31.810> for 00:05:31.980 --> 00:05:31.990 align:start position:0% explained to you our framework for 00:05:31.990 --> 00:05:33.270 align:start position:0% explained to you our framework for securities<00:05:32.410> regulation<00:05:32.919> of<00:05:33.010> crypto 00:05:33.270 --> 00:05:33.280 align:start position:0% securities regulation of crypto 00:05:33.280 --> 00:05:35.880 align:start position:0% securities regulation of crypto currencies<00:05:33.790> and<00:05:34.030> we<00:05:34.450> think<00:05:34.690> that<00:05:35.140> having 00:05:35.880 --> 00:05:35.890 align:start position:0% currencies and we think that having 00:05:35.890 --> 00:05:37.950 align:start position:0% currencies and we think that having produced<00:05:36.370> that<00:05:36.550> and<00:05:36.729> having<00:05:37.060> spent<00:05:37.570> a<00:05:37.720> lot<00:05:37.930> of 00:05:37.950 --> 00:05:37.960 align:start position:0% produced that and having spent a lot of 00:05:37.960 --> 00:05:40.140 align:start position:0% produced that and having spent a lot of time<00:05:38.169> with<00:05:38.320> the<00:05:38.440> SEC<00:05:38.890> explaining<00:05:39.790> to<00:05:39.970> them 00:05:40.140 --> 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--> 00:05:49.530 align:start position:0% tokens are not securities and having spent<00:05:48.520> a<00:05:48.610> lot<00:05:48.729> of<00:05:48.760> time<00:05:48.940> with<00:05:49.030> them<00:05:49.120> explaining 00:05:49.530 --> 00:05:49.540 align:start position:0% spent a lot of time with them explaining 00:05:49.540 --> 00:05:51.870 align:start position:0% spent a lot of time with them explaining the<00:05:49.930> technology<00:05:50.470> and<00:05:50.560> how<00:05:50.680> it<00:05:50.770> works<00:05:50.950> has 00:05:51.870 --> 00:05:51.880 align:start position:0% the technology and how it works has 00:05:51.880 --> 00:05:55.080 align:start position:0% the technology and how it works has borne<00:05:52.240> fruit<00:05:52.540> so<00:05:53.140> recently<00:05:53.650> they<00:05:54.040> produced<00:05:54.940> a 00:05:55.080 --> 00:05:55.090 align:start position:0% borne fruit so recently they produced a 00:05:55.090 --> 00:05:56.700 align:start position:0% borne fruit so recently they produced a dau<00:05:55.270> report<00:05:55.690> which<00:05:55.840> you<00:05:55.960> all<00:05:56.200> may<00:05:56.380> have<00:05:56.410> seen 00:05:56.700 --> 00:05:56.710 align:start position:0% dau report which you all may have seen 00:05:56.710 --> 00:05:58.110 align:start position:0% dau report which you all may have seen and<00:05:56.950> we<00:05:57.370> think<00:05:57.580> that<00:05:57.640> it<00:05:57.790> was<00:05:57.910> a<00:05:57.940> very 00:05:58.110 --> 00:05:58.120 align:start position:0% and we think that it was a very 00:05:58.120 --> 00:06:01.560 align:start position:0% and we think that it was a very thoughtful<00:05:58.660> and<00:05:59.260> very<00:05:59.680> deliberate<00:06:00.570> approach 00:06:01.560 --> 00:06:01.570 align:start position:0% thoughtful and very deliberate approach 00:06:01.570 --> 00:06:03.960 align:start position:0% thoughtful and very deliberate approach that<00:06:01.870> didn't<00:06:02.229> bring<00:06:03.070> an<00:06:03.190> enforcement<00:06:03.430> action 00:06:03.960 --> 00:06:03.970 align:start position:0% that didn't bring an enforcement action 00:06:03.970 --> 00:06:08.219 align:start position:0% that didn't bring an enforcement action and<00:06:04.720> it<00:06:05.229> really<00:06:05.500> echoes<00:06:05.950> a<00:06:06.340> lot<00:06:06.970> of<00:06:07.240> the<00:06:07.750> policy 00:06:08.219 --> 00:06:08.229 align:start position:0% and it really echoes a lot of the policy 00:06:08.229 --> 00:06:09.870 align:start position:0% and it really echoes a lot of the policy thinking<00:06:08.590> that<00:06:08.950> we've<00:06:09.070> been<00:06:09.190> advocating<00:06:09.700> over 00:06:09.870 --> 00:06:09.880 align:start position:0% thinking that we've been advocating over 00:06:09.880 --> 00:06:13.230 align:start position:0% thinking that we've been advocating over the<00:06:09.970> past<00:06:10.150> year<00:06:10.800> and<00:06:11.800> again<00:06:12.550> this<00:06:12.760> isn't<00:06:12.940> just 00:06:13.230 --> 00:06:13.240 align:start position:0% the past year and again this isn't just 00:06:13.240 --> 00:06:15.270 align:start position:0% the past year and again this isn't just it<00:06:13.930> sounds<00:06:14.290> seems<00:06:14.470> like<00:06:14.560> this<00:06:14.680> is<00:06:14.740> just<00:06:14.979> us 00:06:15.270 --> 00:06:15.280 align:start position:0% it sounds seems like this is just us 00:06:15.280 --> 00:06:17.640 align:start position:0% it sounds seems like this is just us based<00:06:15.520> but<00:06:15.940> what<00:06:16.120> we<00:06:16.270> see<00:06:16.479> is<00:06:16.840> that<00:06:17.110> once<00:06:17.470> the 00:06:17.640 --> 00:06:17.650 align:start position:0% based but what we see is that once the 00:06:17.650 --> 00:06:19.290 align:start position:0% based but what we see is that once the us<00:06:17.950> Act<00:06:18.190> once<00:06:18.729> the<00:06:18.820> Securities<00:06:19.180> and<00:06:19.240> Exchange 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there was just 00:06:43.039 --> 00:06:46.089 align:start position:0% that so over the summer there was just this<00:06:43.219> really<00:06:43.430> strange<00:06:43.879> surge<00:06:44.389> of<00:06:44.810> interest<00:06:45.469> in 00:06:46.089 --> 00:06:46.099 align:start position:0% this really strange surge of interest in 00:06:46.099 --> 00:06:47.860 align:start position:0% this really strange surge of interest in this<00:06:46.310> potential<00:06:46.879> there<00:06:47.060> were<00:06:47.210> a<00:06:47.449> couple<00:06:47.689> of 00:06:47.860 --> 00:06:47.870 align:start position:0% this potential there were a couple of 00:06:47.870 --> 00:06:49.390 align:start position:0% this potential there were a couple of reports<00:06:48.229> published<00:06:48.620> one<00:06:48.860> by<00:06:49.009> the<00:06:49.069> Center<00:06:49.370> for 00:06:49.390 --> 00:06:49.400 align:start position:0% reports published one by the Center for 00:06:49.400 --> 00:06:51.279 align:start position:0% reports published one by the Center for a<00:06:49.550> New<00:06:49.669> American<00:06:49.699> Security<00:06:50.199> there<00:06:51.199> are<00:06:51.259> a 00:06:51.279 --> 00:06:51.289 align:start position:0% a New American Security there are a 00:06:51.289 --> 00:06:52.869 align:start position:0% a New American Security there are a couple<00:06:51.409> of<00:06:51.500> convenings<00:06:52.099> and<00:06:52.250> most 00:06:52.869 --> 00:06:52.879 align:start position:0% couple of convenings and most 00:06:52.879 --> 00:06:55.240 align:start position:0% couple of convenings and most importantly<00:06:53.330> there<00:06:53.750> was<00:06:54.169> there's<00:06:54.860> a<00:06:54.919> nuke 00:06:55.240 --> 00:06:55.250 align:start position:0% importantly there was there's a nuke 00:06:55.250 --> 00:06:58.890 align:start position:0% importantly there was there's a nuke subcommittee<00:06:55.939> in<00:06:56.210> Congress<00:06:57.169> called<00:06:57.500> the 00:06:58.890 --> 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they<00:07:05.569> decided<00:07:05.870> that<00:07:05.990> their<00:07:06.139> first<00:07:06.319> thing<00:07:06.469> they 00:07:06.580 --> 00:07:06.590 align:start position:0% they decided that their first thing they 00:07:06.590 --> 00:07:08.320 align:start position:0% they decided that their first thing they were<00:07:06.680> going<00:07:06.800> to<00:07:06.860> really<00:07:07.009> work<00:07:07.190> on<00:07:07.400> was<00:07:07.909> the 00:07:08.320 --> 00:07:08.330 align:start position:0% were going to really work on was the 00:07:08.330 --> 00:07:09.550 align:start position:0% were going to really work on was the potential<00:07:08.659> for<00:07:08.810> terrorists<00:07:09.409> using 00:07:09.550 --> 00:07:09.560 align:start position:0% potential for terrorists using 00:07:09.560 --> 00:07:12.219 align:start position:0% potential for terrorists using cryptocurrency<00:07:10.599> because<00:07:11.599> we<00:07:11.840> have<00:07:11.990> built 00:07:12.219 --> 00:07:12.229 align:start position:0% cryptocurrency because we have built 00:07:12.229 --> 00:07:13.719 align:start position:0% cryptocurrency because we have built over<00:07:12.319> the<00:07:12.500> past<00:07:12.560> three<00:07:12.949> years<00:07:13.009> strong 00:07:13.719 --> 00:07:13.729 align:start position:0% over the past three years strong 00:07:13.729 --> 00:07:15.700 align:start position:0% over the past three years strong relationships<00:07:14.360> with<00:07:14.449> Congress<00:07:14.870> we<00:07:15.560> were 00:07:15.700 --> 00:07:15.710 align:start position:0% relationships with Congress we were 00:07:15.710 --> 00:07:17.559 align:start position:0% relationships with Congress we were invited<00:07:16.099> to<00:07:16.400> help<00:07:16.909> them<00:07:17.180> with<00:07:17.389> that 00:07:17.559 --> 00:07:17.569 align:start position:0% invited to help them with that 00:07:17.569 --> 00:07:20.170 align:start position:0% invited to help them with that investigation<00:07:18.199> and<00:07:18.800> so<00:07:18.949> we<00:07:19.460> navigated<00:07:19.969> them 00:07:20.170 --> 00:07:20.180 align:start position:0% investigation and so we navigated them 00:07:20.180 --> 00:07:21.999 align:start position:0% investigation and so we navigated them through<00:07:20.449> the<00:07:20.690> space<00:07:20.900> we<00:07:21.169> brought<00:07:21.349> experts<00:07:21.710> to 00:07:21.999 --> 00:07:22.009 align:start position:0% through the space we brought experts to 00:07:22.009 --> 00:07:23.890 align:start position:0% through the space we brought experts to town<00:07:22.190> to<00:07:22.340> talk<00:07:22.520> to<00:07:22.699> them<00:07:22.849> we<00:07:23.330> put<00:07:23.479> on<00:07:23.569> a<00:07:23.599> demo 00:07:23.890 --> 00:07:23.900 align:start position:0% town to talk to them we put on a demo 00:07:23.900 --> 00:07:26.350 align:start position:0% town to talk to them we put on a demo day<00:07:24.110> where<00:07:24.289> we<00:07:24.409> showed<00:07:25.069> them<00:07:25.250> technology<00:07:26.029> and 00:07:26.350 --> 00:07:26.360 align:start position:0% day where we showed them technology and 00:07:26.360 --> 00:07:28.420 align:start position:0% day where we showed them technology and demoed<00:07:26.599> it<00:07:26.719> we<00:07:27.319> put<00:07:27.949> on<00:07:28.039> a<00:07:28.069> full<00:07:28.250> member 00:07:28.420 --> 00:07:28.430 align:start position:0% demoed it we put on a full member 00:07:28.430 --> 00:07:29.830 align:start position:0% demoed it we put on a full member briefing<00:07:28.849> for<00:07:28.969> the<00:07:29.090> members<00:07:29.330> of<00:07:29.389> Congress<00:07:29.719> and 00:07:29.830 --> 00:07:29.840 align:start position:0% briefing for the members of Congress and 00:07:29.840 --> 00:07:31.570 align:start position:0% briefing for the members of Congress and the<00:07:30.080> committee<00:07:30.319> and<00:07:30.560> finally<00:07:31.250> we<00:07:31.400> had<00:07:31.550> a 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position:0% hearing and the conclusion at this point 00:07:37.879 --> 00:07:41.830 align:start position:0% hearing and the conclusion at this point they're<00:07:38.509> satisfied<00:07:39.169> that<00:07:39.770> this<00:07:40.340> is<00:07:40.610> a<00:07:41.090> serious 00:07:41.830 --> 00:07:41.840 align:start position:0% they're satisfied that this is a serious 00:07:41.840 --> 00:07:44.230 align:start position:0% they're satisfied that this is a serious you<00:07:42.199> know<00:07:42.319> potential<00:07:42.860> threat<00:07:43.159> but<00:07:43.819> one<00:07:44.060> that 00:07:44.230 --> 00:07:44.240 align:start position:0% you know potential threat but one that 00:07:44.240 --> 00:07:45.519 align:start position:0% you know potential threat but one that at<00:07:44.330> the<00:07:44.419> moment<00:07:44.750> there's<00:07:44.960> only<00:07:45.020> anecdotal 00:07:45.519 --> 00:07:45.529 align:start position:0% at the moment there's only anecdotal 00:07:45.529 --> 00:07:48.189 align:start position:0% at the moment there's only anecdotal evidence<00:07:45.830> of<00:07:46.479> it's<00:07:47.479> something<00:07:47.719> that<00:07:48.050> law 00:07:48.189 --> 00:07:48.199 align:start position:0% evidence of it's something that law 00:07:48.199 --> 00:07:50.499 align:start position:0% evidence of it's something that law enforcement<00:07:48.680> has<00:07:48.860> the<00:07:49.069> tools<00:07:49.279> to<00:07:50.029> address<00:07:50.240> it 00:07:50.499 --> 00:07:50.509 align:start position:0% enforcement has the tools to address it 00:07:50.509 --> 00:07:54.430 align:start position:0% enforcement has the tools to address it and<00:07:51.409> I<00:07:51.560> think<00:07:51.860> we<00:07:52.460> may<00:07:52.610> see<00:07:52.669> legislation<00:07:53.440> at 00:07:54.430 --> 00:07:54.440 align:start position:0% and I think we may see legislation at 00:07:54.440 --> 00:07:56.619 align:start position:0% and I think we may see legislation at some<00:07:54.589> point<00:07:54.800> soon<00:07:54.979> related<00:07:55.580> to<00:07:55.699> this<00:07:55.849> but<00:07:56.060> it's 00:07:56.619 --> 00:07:56.629 align:start position:0% some point soon related to this but it's 00:07:56.629 --> 00:07:59.439 align:start position:0% some point soon related to this but it's going<00:07:56.870> to<00:07:57.050> be<00:07:57.909> focused<00:07:58.909> on<00:07:59.000> fact<00:07:59.270> more 00:07:59.439 --> 00:07:59.449 align:start position:0% going to be focused on fact more 00:07:59.449 --> 00:08:01.899 align:start position:0% going to be focused on fact more fact-finding<00:08:00.110> so<00:08:00.919> that's<00:08:01.129> the<00:08:01.279> state<00:08:01.430> of<00:08:01.490> that 00:08:01.899 --> 00:08:01.909 align:start position:0% fact-finding so that's the state of that 00:08:01.909 --> 00:08:03.430 align:start position:0% fact-finding so that's the state of that and<00:08:02.360> funny<00:08:02.900> thing 00:08:03.430 --> 00:08:03.440 align:start position:0% and funny thing 00:08:03.440 --> 00:08:05.260 align:start position:0% and funny thing while<00:08:03.620> I<00:08:03.650> was<00:08:03.889> testifying<00:08:04.370> at<00:08:04.639> that<00:08:04.909> hearing 00:08:05.260 --> 00:08:05.270 align:start position:0% while I was testifying at that hearing 00:08:05.270 --> 00:08:08.829 align:start position:0% while I was testifying at that hearing across<00:08:06.259> the<00:08:06.650> hallway<00:08:07.550> in<00:08:08.120> a<00:08:08.449> different 00:08:08.829 --> 00:08:08.839 align:start position:0% across the hallway in a different 00:08:08.839 --> 00:08:10.329 align:start position:0% across the hallway in a different hearing<00:08:09.050> and<00:08:09.139> this<00:08:09.199> never<00:08:09.409> happens<00:08:09.830> at<00:08:10.250> the 00:08:10.329 --> 00:08:10.339 align:start position:0% hearing and this never happens at the 00:08:10.339 --> 00:08:11.110 align:start position:0% hearing and this never happens at the same<00:08:10.580> time 00:08:11.110 --> 00:08:11.120 align:start position:0% same time 00:08:11.120 --> 00:08:14.290 align:start position:0% same time Peter<00:08:11.330> was<00:08:11.990> testifying<00:08:12.639> and<00:08:13.639> much<00:08:13.969> happier 00:08:14.290 --> 00:08:14.300 align:start position:0% Peter was testifying and much happier 00:08:14.300 --> 00:08:16.029 align:start position:0% Peter was testifying and much happier subject<00:08:14.690> about<00:08:14.839> how<00:08:15.169> open<00:08:15.529> blockchains 00:08:16.029 --> 00:08:16.039 align:start position:0% subject about how open blockchains 00:08:16.039 --> 00:08:19.300 align:start position:0% subject about how open blockchains can<00:08:16.729> help<00:08:16.879> the<00:08:16.969> economy<00:08:17.060> and<00:08:17.599> he<00:08:17.990> was<00:08:18.110> asked<00:08:18.589> by 00:08:19.300 --> 00:08:19.310 align:start position:0% can help the economy and he was asked by 00:08:19.310 --> 00:08:21.760 align:start position:0% can help the economy and he was asked by a<00:08:19.339> member<00:08:19.610> of<00:08:19.669> Congress<00:08:20.409> what<00:08:21.409> was<00:08:21.560> the<00:08:21.650> most 00:08:21.760 --> 00:08:21.770 align:start position:0% a member of Congress what was the most 00:08:21.770 --> 00:08:24.670 align:start position:0% a member of Congress what was the most exciting<00:08:22.190> thing<00:08:22.219> that<00:08:23.210> he'd<00:08:23.479> seen<00:08:23.779> since<00:08:24.379> the 00:08:24.670 --> 00:08:24.680 align:start position:0% exciting thing that he'd seen since the 00:08:24.680 --> 00:08:26.589 align:start position:0% exciting thing that he'd seen since the last<00:08:24.860> time<00:08:25.069> that<00:08:25.250> we<00:08:25.339> had<00:08:25.610> been<00:08:25.849> in<00:08:26.060> Congress 00:08:26.589 --> 00:08:26.599 align:start position:0% last time that we had been in Congress 00:08:26.599 --> 00:08:28.600 align:start position:0% last time that we had been in Congress testifying<00:08:27.080> and<00:08:27.259> Peter<00:08:27.710> said<00:08:27.949> well<00:08:28.310> it<00:08:28.460> was 00:08:28.600 --> 00:08:28.610 align:start position:0% testifying and Peter said well it was 00:08:28.610 --> 00:08:31.119 align:start position:0% testifying and Peter said well it was the<00:08:28.729> launch<00:08:29.029> of<00:08:29.379> new<00:08:30.379> networks<00:08:30.800> like 00:08:31.119 --> 00:08:31.129 align:start position:0% the launch of new networks like 00:08:31.129 --> 00:08:33.140 align:start position:0% the launch of new networks like aetherium<00:08:32.000> and<00:08:32.149> Z<00:08:32.360> cash 00:08:33.140 --> 00:08:33.150 align:start position:0% aetherium and Z cash 00:08:33.150 --> 00:08:35.450 align:start position:0% aetherium and Z cash heeey<00:08:33.900> you<00:08:34.380> should<00:08:34.560> go<00:08:34.830> look<00:08:35.040> up<00:08:35.190> this<00:08:35.280> video 00:08:35.450 --> 00:08:35.460 align:start position:0% heeey you should go look up this video 00:08:35.460 --> 00:08:37.790 align:start position:0% heeey you should go look up this video if<00:08:35.790> you<00:08:36.030> haven't<00:08:36.240> done<00:08:36.450> so<00:08:36.690> in<00:08:36.870> two<00:08:37.560> minutes 00:08:37.790 --> 00:08:37.800 align:start position:0% if you haven't done so in two minutes 00:08:37.800 --> 00:08:39.740 align:start position:0% if you haven't done so in two minutes explained<00:08:38.460> a<00:08:38.610> theorem<00:08:38.880> and<00:08:39.000> Z<00:08:39.120> cache<00:08:39.330> master 00:08:39.740 --> 00:08:39.750 align:start position:0% explained a theorem and Z cache master 00:08:39.750 --> 00:08:41.990 align:start position:0% explained a theorem and Z cache master for<00:08:39.900> later<00:08:40.080> so<00:08:40.320> it's<00:08:40.590> really<00:08:40.890> remarkable<00:08:41.100> so 00:08:41.990 --> 00:08:42.000 align:start position:0% for later so it's really remarkable so 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want 00:08:48.690 --> 00:08:56.060 align:start position:0% some issues thanks Jerry so I just want to<00:08:48.750> I<00:08:53.450> just<00:08:54.450> want<00:08:54.900> to<00:08:54.990> generally<00:08:55.350> characterize 00:08:56.060 --> 00:08:56.070 align:start position:0% to I just want to generally characterize 00:08:56.070 --> 00:08:59.240 align:start position:0% to I just want to generally characterize some<00:08:56.340> big<00:08:56.490> issues<00:08:56.640> on<00:08:56.940> the<00:08:57.030> horizon<00:08:58.100> and<00:08:59.100> of 00:08:59.240 --> 00:08:59.250 align:start position:0% some big issues on the horizon and of 00:08:59.250 --> 00:09:00.950 align:start position:0% some big issues on the horizon and of course<00:08:59.460> that<00:08:59.640> means<00:08:59.820> most<00:09:00.060> of<00:09:00.270> this<00:09:00.480> second 00:09:00.950 --> 00:09:00.960 align:start position:0% course that means most of this second 00:09:00.960 --> 00:09:02.210 align:start position:0% course that means most of this second half<00:09:01.110> is<00:09:01.230> gonna<00:09:01.380> be<00:09:01.530> about<00:09:01.620> tokens<00:09:02.130> because 00:09:02.210 --> 00:09:02.220 align:start position:0% half is gonna be about tokens because 00:09:02.220 --> 00:09:03.290 align:start position:0% half is gonna be about tokens because that's<00:09:02.490> where<00:09:02.640> a<00:09:02.670> lot<00:09:02.820> of<00:09:02.850> the<00:09:02.970> regulatory 00:09:03.290 --> 00:09:03.300 align:start position:0% that's where a lot of the regulatory 00:09:03.300 --> 00:09:05.450 align:start position:0% that's where a lot of the regulatory attention<00:09:03.630> and<00:09:04.170> maybe<00:09:04.530> attention<00:09:05.040> in<00:09:05.130> general 00:09:05.450 --> 00:09:05.460 align:start position:0% attention and maybe attention in general 00:09:05.460 --> 00:09:07.940 align:start position:0% attention and maybe attention in general is<00:09:05.580> right<00:09:05.850> now<00:09:06.030> so<00:09:06.840> there<00:09:07.260> are<00:09:07.350> two<00:09:07.530> regulatory 00:09:07.940 --> 00:09:07.950 align:start position:0% is right now so there are two regulatory 00:09:07.950 --> 00:09:10.040 align:start position:0% is right now so there are two regulatory hotspots<00:09:08.700> to<00:09:08.880> look<00:09:09.030> out<00:09:09.180> for<00:09:09.360> with<00:09:09.540> respect<00:09:09.690> to 00:09:10.040 --> 00:09:10.050 align:start position:0% hotspots to look out for with respect to 00:09:10.050 --> 00:09:13.460 align:start position:0% hotspots to look out for with respect to tokens<00:09:10.440> one<00:09:10.860> is<00:09:11.750> securities<00:09:12.750> regulation<00:09:13.320> of 00:09:13.460 --> 00:09:13.470 align:start position:0% tokens one is securities regulation of 00:09:13.470 --> 00:09:15.020 align:start position:0% tokens one is securities regulation of course<00:09:13.680> which<00:09:13.980> I<00:09:14.100> talked<00:09:14.340> about<00:09:14.430> in<00:09:14.670> Def<00:09:14.850> Con 00:09:15.020 --> 00:09:15.030 align:start position:0% course which I talked about in Def Con 00:09:15.030 --> 00:09:17.780 align:start position:0% course which I talked about in Def Con last<00:09:15.300> year<00:09:15.600> and<00:09:16.530> the<00:09:16.800> second<00:09:17.160> is<00:09:17.280> anti<00:09:17.640> money 00:09:17.780 --> 00:09:17.790 align:start position:0% last year and the second is anti money 00:09:17.790 --> 00:09:19.340 align:start position:0% last year and the second is anti money laundering<00:09:17.910> or<00:09:18.420> financial<00:09:18.900> surveillance 00:09:19.340 --> 00:09:19.350 align:start position:0% laundering or financial surveillance 00:09:19.350 --> 00:09:22.490 align:start position:0% laundering or financial surveillance regulation<00:09:19.950> so<00:09:20.640> AML<00:09:21.180> in<00:09:21.450> a<00:09:21.540> nutshell<00:09:21.780> boils 00:09:22.490 --> 00:09:22.500 align:start position:0% regulation so AML in a nutshell boils 00:09:22.500 --> 00:09:24.590 align:start position:0% regulation so AML in a nutshell boils down<00:09:22.560> to<00:09:22.680> two<00:09:22.920> questions<00:09:23.160> first<00:09:23.730> does<00:09:23.940> AML<00:09:24.420> law 00:09:24.590 --> 00:09:24.600 align:start position:0% down to two questions first does AML law 00:09:24.600 --> 00:09:26.540 align:start position:0% down to two questions first does AML law applied<00:09:25.110> to<00:09:25.530> your<00:09:25.740> token<00:09:26.280> or<00:09:26.430> your 00:09:26.540 --> 00:09:26.550 align:start position:0% applied to your token or your 00:09:26.550 --> 00:09:27.560 align:start position:0% applied to your token or your cryptocurrency 00:09:27.560 --> 00:09:27.570 align:start position:0% cryptocurrency 00:09:27.570 --> 00:09:29.780 align:start position:0% cryptocurrency well<00:09:27.930> the<00:09:28.110> question<00:09:28.800> that<00:09:28.890> answers<00:09:29.310> that<00:09:29.370> in 00:09:29.780 --> 00:09:29.790 align:start position:0% well the question that answers that in 00:09:29.790 --> 00:09:32.600 align:start position:0% well the question that answers that in the<00:09:30.150> US<00:09:30.480> and<00:09:30.900> this<00:09:30.960> will<00:09:31.230> be<00:09:31.350> echoed<00:09:31.800> elsewhere 00:09:32.600 --> 00:09:32.610 align:start position:0% the US and this will be echoed elsewhere 00:09:32.610 --> 00:09:35.570 align:start position:0% the US and this will be echoed elsewhere is<00:09:32.850> is<00:09:33.180> the<00:09:33.540> token<00:09:33.780> being<00:09:34.110> used<00:09:34.380> as<00:09:34.830> a<00:09:35.130> currency 00:09:35.570 --> 00:09:35.580 align:start position:0% is is the token being used as a currency 00:09:35.580 --> 00:09:37.910 align:start position:0% is is the token being used as a currency substitute<00:09:36.240> not<00:09:36.660> is<00:09:36.810> it<00:09:36.930> designed<00:09:37.440> as<00:09:37.860> a 00:09:37.910 --> 00:09:37.920 align:start position:0% substitute not is it designed as a 00:09:37.920 --> 00:09:40.730 align:start position:0% substitute not is it designed as a currency<00:09:38.490> substitute<00:09:39.060> is<00:09:39.210> it<00:09:39.450> being<00:09:39.720> used<00:09:40.230> as 00:09:40.730 --> 00:09:40.740 align:start position:0% currency substitute is it being used as 00:09:40.740 --> 00:09:43.970 align:start position:0% currency substitute is it being used as currency<00:09:41.730> somewhere<00:09:42.330> in<00:09:42.420> the<00:09:42.510> world<00:09:42.720> then<00:09:43.410> AML 00:09:43.970 --> 00:09:43.980 align:start position:0% currency somewhere in the world then AML 00:09:43.980 --> 00:09:45.350 align:start position:0% currency somewhere in the world then AML law<00:09:44.190> is<00:09:44.400> something<00:09:44.700> you<00:09:44.790> have<00:09:44.880> to<00:09:44.940> think<00:09:45.240> about 00:09:45.350 --> 00:09:45.360 align:start position:0% law is something you have to think about 00:09:45.360 --> 00:09:47.390 align:start position:0% law is something you have to think about then<00:09:45.930> the<00:09:46.050> second<00:09:46.380> question<00:09:46.440> says<00:09:46.800> okay<00:09:47.190> if 00:09:47.390 --> 00:09:47.400 align:start position:0% then the second question says okay if 00:09:47.400 --> 00:09:49.700 align:start position:0% then the second question says okay if it's<00:09:47.700> used<00:09:48.180> as<00:09:48.510> a<00:09:48.570> currency<00:09:48.960> substitute<00:09:49.470> who's 00:09:49.700 --> 00:09:49.710 align:start position:0% it's used as a currency substitute who's 00:09:49.710 --> 00:09:51.980 align:start position:0% it's used as a currency substitute who's regulated<00:09:50.460> this<00:09:50.910> gets<00:09:51.150> to<00:09:51.300> our<00:09:51.330> definition<00:09:51.930> of 00:09:51.980 --> 00:09:51.990 align:start position:0% regulated this gets to our definition of 00:09:51.990 --> 00:09:54.530 align:start position:0% regulated this gets to our definition of control<00:09:52.440> but<00:09:53.130> right<00:09:53.340> now<00:09:53.550> the<00:09:54.060> question<00:09:54.210> with 00:09:54.530 --> 00:09:54.540 align:start position:0% control but right now the question with 00:09:54.540 --> 00:09:57.230 align:start position:0% control but right now the question with tokens<00:09:54.780> is<00:09:55.140> is<00:09:55.800> there<00:09:56.100> an<00:09:56.220> issuer<00:09:56.700> who<00:09:57.060> can 00:09:57.230 --> 00:09:57.240 align:start position:0% tokens is is there an issuer who can 00:09:57.240 --> 00:09:59.570 align:start position:0% tokens is is there an issuer who can also<00:09:57.420> withdraw<00:09:58.200> the<00:09:58.740> the<00:09:59.130> tokens<00:09:59.490> from 00:09:59.570 --> 00:09:59.580 align:start position:0% also withdraw the the tokens from 00:09:59.580 --> 00:10:01.640 align:start position:0% also withdraw the the tokens from circulation<00:10:00.120> so<00:10:00.450> it's<00:10:00.600> centralized<00:10:01.260> it's 00:10:01.640 --> 00:10:01.650 align:start position:0% circulation so it's centralized it's 00:10:01.650 --> 00:10:04.040 align:start position:0% circulation so it's centralized it's like<00:10:01.830> eagled<00:10:02.400> or<00:10:02.640> Liberty<00:10:02.970> Reserve<00:10:03.150> if<00:10:03.810> there 00:10:04.040 --> 00:10:04.050 align:start position:0% like eagled or Liberty Reserve if there 00:10:04.050 --> 00:10:05.960 align:start position:0% like eagled or Liberty Reserve if there is<00:10:04.200> an<00:10:04.380> issue<00:10:04.530> or<00:10:04.860> who<00:10:04.950> can<00:10:05.100> also<00:10:05.220> call<00:10:05.760> them 00:10:05.960 --> 00:10:05.970 align:start position:0% is an issue or who can also call them 00:10:05.970 --> 00:10:07.820 align:start position:0% is an issue or who can also call them back<00:10:06.240> out<00:10:06.600> of<00:10:06.660> the<00:10:06.930> network<00:10:07.260> because<00:10:07.530> they 00:10:07.820 --> 00:10:07.830 align:start position:0% back out of the network because they 00:10:07.830 --> 00:10:10.190 align:start position:0% back out of the network because they keep<00:10:08.070> the<00:10:08.250> ledger<00:10:08.460> well<00:10:09.090> then<00:10:09.240> that<00:10:09.420> issuer<00:10:09.900> is 00:10:10.190 --> 00:10:10.200 align:start position:0% keep the ledger well then that issuer is 00:10:10.200 --> 00:10:12.440 align:start position:0% keep the ledger well then that issuer is a<00:10:10.230> money<00:10:10.500> services<00:10:11.010> business<00:10:11.430> if<00:10:11.640> there's<00:10:12.210> no 00:10:12.440 --> 00:10:12.450 align:start position:0% a money services business if there's no 00:10:12.450 --> 00:10:14.150 align:start position:0% a money services business if there's no issuer<00:10:12.990> because<00:10:13.470> it's<00:10:13.620> a<00:10:13.710> proper 00:10:14.150 --> 00:10:14.160 align:start position:0% issuer because it's a proper 00:10:14.160 --> 00:10:16.370 align:start position:0% issuer because it's a proper decentralized<00:10:15.150> cryptocurrency<00:10:15.390> like 00:10:16.370 --> 00:10:16.380 align:start position:0% decentralized cryptocurrency like 00:10:16.380 --> 00:10:18.620 align:start position:0% decentralized cryptocurrency like aetherium<00:10:16.740> or<00:10:17.040> Bitcoin<00:10:17.430> well<00:10:18.030> then<00:10:18.240> there<00:10:18.450> is 00:10:18.620 --> 00:10:18.630 align:start position:0% aetherium or Bitcoin well then there is 00:10:18.630 --> 00:10:21.350 align:start position:0% aetherium or Bitcoin well then there is no<00:10:18.840> issue<00:10:19.080> or<00:10:19.380> for<00:10:19.590> there<00:10:20.340> to<00:10:20.430> be<00:10:20.550> an<00:10:20.640> MSB<00:10:21.090> as<00:10:21.240> an 00:10:21.350 --> 00:10:21.360 align:start position:0% no issue or for there to be an MSB as an 00:10:21.360 --> 00:10:23.930 align:start position:0% no issue or for there to be an MSB as an issuer<00:10:21.690> so<00:10:21.990> it's<00:10:22.230> the<00:10:22.410> exchanges<00:10:23.130> companies 00:10:23.930 --> 00:10:23.940 align:start position:0% issuer so it's the exchanges companies 00:10:23.940 --> 00:10:26.270 align:start position:0% issuer so it's the exchanges companies like<00:10:24.120> coinbase<00:10:24.420> with<00:10:24.990> G<00:10:25.230> Dax<00:10:25.440> or<00:10:25.770> Polonia<00:10:26.190> X 00:10:26.270 --> 00:10:26.280 align:start position:0% like coinbase with G Dax or Polonia X 00:10:26.280 --> 00:10:28.790 align:start position:0% like coinbase with G Dax or Polonia X those<00:10:26.880> are<00:10:26.910> the<00:10:27.240> MSBs<00:10:27.810> those<00:10:28.470> are<00:10:28.710> the 00:10:28.790 --> 00:10:28.800 align:start position:0% those are the MSBs those are the 00:10:28.800 --> 00:10:30.890 align:start position:0% those are the MSBs those are the entities<00:10:29.340> who<00:10:29.580> need<00:10:29.790> to<00:10:29.940> effectively<00:10:30.330> surveil 00:10:30.890 --> 00:10:30.900 align:start position:0% entities who need to effectively surveil 00:10:30.900 --> 00:10:32.510 align:start position:0% entities who need to effectively surveil their<00:10:31.110> customers<00:10:31.650> who<00:10:32.100> need<00:10:32.190> to<00:10:32.400> do 00:10:32.510 --> 00:10:32.520 align:start position:0% their customers who need to do 00:10:32.520 --> 00:10:34.070 align:start position:0% their customers who need to do anti-money<00:10:32.970> laundering<00:10:33.080> compliance 00:10:34.070 --> 00:10:34.080 align:start position:0% anti-money laundering compliance 00:10:34.080 --> 00:10:35.600 align:start position:0% anti-money laundering compliance suspicious<00:10:34.590> activity<00:10:35.040> reporting<00:10:35.400> and<00:10:35.520> things 00:10:35.600 --> 00:10:35.610 align:start position:0% suspicious activity reporting and things 00:10:35.610 --> 00:10:37.520 align:start position:0% suspicious activity reporting and things like<00:10:35.850> this<00:10:36.030> it's<00:10:36.450> very<00:10:36.720> important<00:10:37.230> to<00:10:37.320> coin 00:10:37.520 --> 00:10:37.530 align:start position:0% like this it's very important to coin 00:10:37.530 --> 00:10:39.380 align:start position:0% like this it's very important to coin Center<00:10:37.860> that<00:10:38.040> we<00:10:38.160> draw<00:10:38.430> this<00:10:38.670> line<00:10:38.730> clearly 00:10:39.380 --> 00:10:39.390 align:start position:0% Center that we draw this line clearly 00:10:39.390 --> 00:10:41.390 align:start position:0% Center that we draw this line clearly between<00:10:39.720> decentralized<00:10:40.620> cryptocurrency<00:10:40.770> and 00:10:41.390 --> 00:10:41.400 align:start position:0% between decentralized cryptocurrency and 00:10:41.400 --> 00:10:45.220 align:start position:0% between decentralized cryptocurrency and centralized<00:10:42.090> ones<00:10:43.160> securities<00:10:44.160> law<00:10:44.400> I'm 00:10:45.220 --> 00:10:45.230 align:start position:0% centralized ones securities law I'm 00:10:45.230 --> 00:10:47.080 align:start position:0% centralized ones securities law I'm to<00:10:45.290> far<00:10:45.560> from<00:10:45.740> my<00:10:45.860> device<00:10:46.100> securities<00:10:46.880> law 00:10:47.080 --> 00:10:47.090 align:start position:0% to far from my device securities law 00:10:47.090 --> 00:10:49.960 align:start position:0% to far from my device securities law boils<00:10:47.570> down<00:10:47.630> to<00:10:47.900> two<00:10:48.230> questions<00:10:48.410> as<00:10:48.860> well<00:10:49.040> the 00:10:49.960 --> 00:10:49.970 align:start position:0% boils down to two questions as well the 00:10:49.970 --> 00:10:52.000 align:start position:0% boils down to two questions as well the first<00:10:50.180> question<00:10:50.540> is<00:10:50.690> is<00:10:50.930> the<00:10:51.500> thing<00:10:51.710> being 00:10:52.000 --> 00:10:52.010 align:start position:0% first question is is the thing being 00:10:52.010 --> 00:10:54.550 align:start position:0% first question is is the thing being sold<00:10:52.310> as<00:10:52.580> an<00:10:52.730> investment<00:10:53.150> and<00:10:53.510> the<00:10:54.170> second 00:10:54.550 --> 00:10:54.560 align:start position:0% sold as an investment and the second 00:10:54.560 --> 00:10:57.610 align:start position:0% sold as an investment and the second question<00:10:54.740> is<00:10:55.190> is<00:10:55.940> there<00:10:56.300> a<00:10:56.330> person<00:10:56.900> upon<00:10:57.590> whom 00:10:57.610 --> 00:10:57.620 align:start position:0% question is is there a person upon whom 00:10:57.620 --> 00:11:00.790 align:start position:0% question is is there a person upon whom investors<00:10:58.610> rely<00:10:59.060> for<00:10:59.480> the<00:10:59.990> profits<00:11:00.470> of<00:11:00.620> their 00:11:00.790 --> 00:11:00.800 align:start position:0% investors rely for the profits of their 00:11:00.800 --> 00:11:02.890 align:start position:0% investors rely for the profits of their investments<00:11:01.400> this<00:11:01.880> is<00:11:02.030> a<00:11:02.060> simplification<00:11:02.540> of 00:11:02.890 --> 00:11:02.900 align:start position:0% investments this is a simplification of 00:11:02.900 --> 00:11:04.480 align:start position:0% investments this is a simplification of the<00:11:03.020> Howey<00:11:03.140> test<00:11:03.290> i<00:11:03.590> presented<00:11:03.980> last<00:11:04.100> year<00:11:04.250> but 00:11:04.480 --> 00:11:04.490 align:start position:0% the Howey test i presented last year but 00:11:04.490 --> 00:11:07.990 align:start position:0% the Howey test i presented last year but this<00:11:04.610> is<00:11:04.760> pretty<00:11:05.210> dead-on<00:11:05.540> I'd<00:11:05.900> say<00:11:06.490> now<00:11:07.490> you 00:11:07.990 --> 00:11:08.000 align:start position:0% this is pretty dead-on I'd say now you 00:11:08.000 --> 00:11:09.850 align:start position:0% this is pretty dead-on I'd say now you can<00:11:08.180> think<00:11:08.330> about<00:11:08.420> this<00:11:08.690> like<00:11:08.870> this<00:11:09.050> gold<00:11:09.590> is 00:11:09.850 --> 00:11:09.860 align:start position:0% can think about this like this gold is 00:11:09.860 --> 00:11:11.470 align:start position:0% can think about this like this gold is sold<00:11:10.070> as<00:11:10.220> an<00:11:10.340> investment<00:11:10.760> of<00:11:11.000> course<00:11:11.240> but 00:11:11.470 --> 00:11:11.480 align:start position:0% sold as an investment of course but 00:11:11.480 --> 00:11:13.420 align:start position:0% sold as an investment of course but there's<00:11:11.660> no<00:11:11.780> one<00:11:11.990> person<00:11:12.290> re<00:11:12.680> rely<00:11:12.980> on<00:11:13.010> to 00:11:13.420 --> 00:11:13.430 align:start position:0% there's no one person re rely on to 00:11:13.430 --> 00:11:15.400 align:start position:0% there's no one person re rely on to create<00:11:13.760> the<00:11:13.790> value<00:11:14.270> of<00:11:14.420> gold<00:11:14.630> it's<00:11:14.960> a<00:11:15.050> network 00:11:15.400 --> 00:11:15.410 align:start position:0% create the value of gold it's a network 00:11:15.410 --> 00:11:17.680 align:start position:0% create the value of gold it's a network of<00:11:15.590> buyers<00:11:15.830> and<00:11:16.010> sellers<00:11:16.190> miners<00:11:17.150> and<00:11:17.420> people 00:11:17.680 --> 00:11:17.690 align:start position:0% of buyers and sellers miners and people 00:11:17.690 --> 00:11:20.320 align:start position:0% of buyers and sellers miners and people using<00:11:18.050> gold<00:11:18.280> there<00:11:19.280> is<00:11:19.310> someone<00:11:19.910> we<00:11:20.000> rely<00:11:20.300> on 00:11:20.320 --> 00:11:20.330 align:start position:0% using gold there is someone we rely on 00:11:20.330 --> 00:11:22.030 align:start position:0% using gold there is someone we rely on if<00:11:20.660> you're<00:11:20.780> buying<00:11:20.960> a<00:11:21.110> share<00:11:21.290> of<00:11:21.440> Apple<00:11:21.560> stock 00:11:22.030 --> 00:11:22.040 align:start position:0% if you're buying a share of Apple stock 00:11:22.040 --> 00:11:24.340 align:start position:0% if you're buying a share of Apple stock his<00:11:22.670> name's<00:11:22.940> Tim<00:11:23.270> Cook<00:11:23.540> and<00:11:23.780> his<00:11:24.020> management 00:11:24.340 --> 00:11:24.350 align:start position:0% his name's Tim Cook and his management 00:11:24.350 --> 00:11:26.770 align:start position:0% his name's Tim Cook and his management team<00:11:24.560> a<00:11:25.000> share<00:11:26.000> of<00:11:26.120> Apple<00:11:26.240> stock<00:11:26.540> is<00:11:26.750> a 00:11:26.770 --> 00:11:26.780 align:start position:0% team a share of Apple stock is a 00:11:26.780 --> 00:11:28.990 align:start position:0% team a share of Apple stock is a security<00:11:27.350> gold<00:11:27.950> that<00:11:28.370> you<00:11:28.490> actually<00:11:28.670> take 00:11:28.990 --> 00:11:29.000 align:start position:0% security gold that you actually take 00:11:29.000 --> 00:11:31.990 align:start position:0% security gold that you actually take delivery<00:11:29.270> of<00:11:29.450> is<00:11:29.720> not<00:11:30.050> and<00:11:30.410> so<00:11:30.700> we<00:11:31.700> can<00:11:31.850> have 00:11:31.990 --> 00:11:32.000 align:start position:0% delivery of is not and so we can have 00:11:32.000 --> 00:11:34.030 align:start position:0% delivery of is not and so we can have this<00:11:32.180> two<00:11:32.600> question<00:11:33.080> classification 00:11:34.030 --> 00:11:34.040 align:start position:0% this two question classification 00:11:34.040 --> 00:11:36.100 align:start position:0% this two question classification exercise<00:11:34.520> to<00:11:34.730> figure<00:11:35.000> out<00:11:35.120> dimensions<00:11:35.870> in 00:11:36.100 --> 00:11:36.110 align:start position:0% exercise to figure out dimensions in 00:11:36.110 --> 00:11:38.950 align:start position:0% exercise to figure out dimensions in order<00:11:36.320> to<00:11:36.440> categorize<00:11:36.980> any<00:11:37.250> token<00:11:37.850> is<00:11:38.000> it<00:11:38.630> more 00:11:38.950 --> 00:11:38.960 align:start position:0% order to categorize any token is it more 00:11:38.960 --> 00:11:41.260 align:start position:0% order to categorize any token is it more of<00:11:39.110> a<00:11:39.200> utility<00:11:39.770> or<00:11:39.950> a<00:11:39.980> useful<00:11:40.400> commercial<00:11:40.910> item 00:11:41.260 --> 00:11:41.270 align:start position:0% of a utility or a useful commercial item 00:11:41.270 --> 00:11:43.570 align:start position:0% of a utility or a useful commercial item or<00:11:41.450> is<00:11:41.810> it<00:11:41.960> sold<00:11:42.380> more<00:11:42.650> as<00:11:42.800> an<00:11:42.950> investment<00:11:43.370> and 00:11:43.570 --> 00:11:43.580 align:start position:0% or is it sold more as an investment and 00:11:43.580 --> 00:11:46.180 align:start position:0% or is it sold more as an investment and what's<00:11:44.150> backing<00:11:44.630> up<00:11:44.780> that<00:11:45.200> token<00:11:45.740> is<00:11:45.950> it<00:11:46.100> a 00:11:46.180 --> 00:11:46.190 align:start position:0% what's backing up that token is it a 00:11:46.190 --> 00:11:49.180 align:start position:0% what's backing up that token is it a decentralized<00:11:46.880> network<00:11:47.420> like<00:11:48.020> gold<00:11:48.530> or<00:11:48.860> is<00:11:49.040> it 00:11:49.180 --> 00:11:49.190 align:start position:0% decentralized network like gold or is it 00:11:49.190 --> 00:11:53.560 align:start position:0% decentralized network like gold or is it somebody<00:11:49.760> like<00:11:50.330> Tim<00:11:50.600> Cook<00:11:50.930> and<00:11:51.940> this<00:11:52.940> is<00:11:53.180> how 00:11:53.560 --> 00:11:53.570 align:start position:0% somebody like Tim Cook and this is how 00:11:53.570 --> 00:11:56.230 align:start position:0% somebody like Tim Cook and this is how we<00:11:53.630> present<00:11:54.080> this<00:11:54.200> to<00:11:54.700> regulators<00:11:55.700> this<00:11:56.060> is 00:11:56.230 --> 00:11:56.240 align:start position:0% we present this to regulators this is 00:11:56.240 --> 00:11:58.240 align:start position:0% we present this to regulators this is far<00:11:56.480> too<00:11:56.630> pedantic<00:11:57.230> and<00:11:57.410> descriptive<00:11:57.860> you 00:11:58.240 --> 00:11:58.250 align:start position:0% far too pedantic and descriptive you 00:11:58.250 --> 00:12:00.880 align:start position:0% far too pedantic and descriptive you understand<00:11:58.700> this<00:11:58.970> money<00:11:59.780> goes<00:11:59.990> in<00:12:00.260> more<00:12:00.740> money 00:12:00.880 --> 00:12:00.890 align:start position:0% understand this money goes in more money 00:12:00.890 --> 00:12:02.800 align:start position:0% understand this money goes in more money comes<00:12:01.160> out<00:12:01.280> it's<00:12:01.460> an<00:12:01.550> investment<00:12:01.970> money<00:12:02.600> goes 00:12:02.800 --> 00:12:02.810 align:start position:0% comes out it's an investment money goes 00:12:02.810 --> 00:12:05.260 align:start position:0% comes out it's an investment money goes in<00:12:03.110> a<00:12:03.410> service<00:12:04.340> comes<00:12:04.580> out<00:12:04.730> could<00:12:04.910> be<00:12:04.940> cloud 00:12:05.260 --> 00:12:05.270 align:start position:0% in a service comes out could be cloud 00:12:05.270 --> 00:12:07.360 align:start position:0% in a service comes out could be cloud storage<00:12:05.780> compute<00:12:06.440> cycles<00:12:06.680> could<00:12:07.100> be<00:12:07.190> a<00:12:07.220> number 00:12:07.360 --> 00:12:07.370 align:start position:0% storage compute cycles could be a number 00:12:07.370 --> 00:12:09.100 align:start position:0% storage compute cycles could be a number of<00:12:07.490> things<00:12:07.580> that's<00:12:08.210> something<00:12:08.720> that's<00:12:08.900> more 00:12:09.100 --> 00:12:09.110 align:start position:0% of things that's something that's more 00:12:09.110 --> 00:12:12.310 align:start position:0% of things that's something that's more useful<00:12:09.410> a<00:12:09.860> vote<00:12:10.580> to<00:12:11.000> decide<00:12:11.390> where<00:12:12.050> the 00:12:12.310 --> 00:12:12.320 align:start position:0% useful a vote to decide where the 00:12:12.320 --> 00:12:14.260 align:start position:0% useful a vote to decide where the cumulative<00:12:12.800> funds<00:12:13.190> should<00:12:13.490> be<00:12:13.610> invested<00:12:14.150> is 00:12:14.260 --> 00:12:14.270 align:start position:0% cumulative funds should be invested is 00:12:14.270 --> 00:12:16.900 align:start position:0% cumulative funds should be invested is not<00:12:14.570> a<00:12:14.600> use<00:12:15.160> that's<00:12:16.160> that<00:12:16.520> has<00:12:16.610> to<00:12:16.760> do<00:12:16.880> with 00:12:16.900 --> 00:12:16.910 align:start position:0% not a use that's that has to do with 00:12:16.910 --> 00:12:18.790 align:start position:0% not a use that's that has to do with profit<00:12:17.390> making<00:12:17.600> and<00:12:17.870> pooling<00:12:18.380> money<00:12:18.410> and 00:12:18.790 --> 00:12:18.800 align:start position:0% profit making and pooling money and 00:12:18.800 --> 00:12:20.770 align:start position:0% profit making and pooling money and growing<00:12:19.010> it<00:12:19.310> but<00:12:19.820> cloud<00:12:20.180> storage<00:12:20.630> or 00:12:20.770 --> 00:12:20.780 align:start position:0% growing it but cloud storage or 00:12:20.780 --> 00:12:22.210 align:start position:0% growing it but cloud storage or something<00:12:20.810> like<00:12:21.140> that<00:12:21.200> makes<00:12:21.740> sense<00:12:22.010> as 00:12:22.210 --> 00:12:22.220 align:start position:0% something like that makes sense as 00:12:22.220 --> 00:12:25.150 align:start position:0% something like that makes sense as something<00:12:22.880> that's<00:12:23.060> useful<00:12:23.360> and<00:12:24.010> then<00:12:25.010> this 00:12:25.150 --> 00:12:25.160 align:start position:0% something that's useful and then this 00:12:25.160 --> 00:12:26.890 align:start position:0% something that's useful and then this issuer<00:12:25.550> versus<00:12:25.940> Network<00:12:26.240> distinction<00:12:26.750> again 00:12:26.890 --> 00:12:26.900 align:start position:0% issuer versus Network distinction again 00:12:26.900 --> 00:12:28.390 align:start position:0% issuer versus Network distinction again this<00:12:27.050> is<00:12:27.170> how<00:12:27.290> we<00:12:27.350> explain<00:12:27.740> it<00:12:27.830> to<00:12:27.950> regulators 00:12:28.390 --> 00:12:28.400 align:start position:0% this is how we explain it to regulators 00:12:28.400 --> 00:12:30.220 align:start position:0% this is how we explain it to regulators so<00:12:28.520> I'm<00:12:28.640> gonna<00:12:28.820> rush<00:12:29.120> because<00:12:29.510> you<00:12:29.720> understand 00:12:30.220 --> 00:12:30.230 align:start position:0% so I'm gonna rush because you understand 00:12:30.230 --> 00:12:32.080 align:start position:0% so I'm gonna rush because you understand if<00:12:30.560> you<00:12:30.650> have<00:12:30.860> PayPal<00:12:31.310> as<00:12:31.550> the<00:12:31.700> service 00:12:32.080 --> 00:12:32.090 align:start position:0% if you have PayPal as the service 00:12:32.090 --> 00:12:34.510 align:start position:0% if you have PayPal as the service provider<00:12:32.480> money<00:12:33.050> goes<00:12:33.260> in<00:12:33.470> you<00:12:33.890> get<00:12:34.040> a<00:12:34.070> service 00:12:34.510 --> 00:12:34.520 align:start position:0% provider money goes in you get a service 00:12:34.520 --> 00:12:36.490 align:start position:0% provider money goes in you get a service PayPal's<00:12:34.910> doing<00:12:35.180> a<00:12:35.270> few<00:12:35.480> things<00:12:35.510> they're 00:12:36.490 --> 00:12:36.500 align:start position:0% PayPal's doing a few things they're 00:12:36.500 --> 00:12:38.200 align:start position:0% PayPal's doing a few things they're checking<00:12:36.800> passwords<00:12:37.490> they're<00:12:37.790> keeping<00:12:38.120> a 00:12:38.200 --> 00:12:38.210 align:start position:0% checking passwords they're keeping a 00:12:38.210 --> 00:12:39.730 align:start position:0% checking passwords they're keeping a record<00:12:38.390> of<00:12:38.660> transactions<00:12:39.380> and<00:12:39.560> there's<00:12:39.680> a 00:12:39.730 --> 00:12:39.740 align:start position:0% record of transactions and there's a 00:12:39.740 --> 00:12:41.620 align:start position:0% record of transactions and there's a corporate<00:12:40.220> oversight<00:12:40.820> role<00:12:41.090> that<00:12:41.270> makes<00:12:41.510> sure 00:12:41.620 --> 00:12:41.630 align:start position:0% corporate oversight role that makes sure 00:12:41.630 --> 00:12:43.510 align:start position:0% corporate oversight role that makes sure the<00:12:41.930> other<00:12:42.140> functions<00:12:42.950> are<00:12:43.070> being<00:12:43.310> performed 00:12:43.510 --> 00:12:43.520 align:start position:0% the other functions are being performed 00:12:43.520 --> 00:12:46.150 align:start position:0% the other functions are being performed well<00:12:44.060> that's<00:12:44.660> how<00:12:44.780> PayPal<00:12:45.200> works<00:12:45.440> what<00:12:45.950> if<00:12:46.040> we 00:12:46.150 --> 00:12:46.160 align:start position:0% well that's how PayPal works what if we 00:12:46.160 --> 00:12:48.670 align:start position:0% well that's how PayPal works what if we want<00:12:46.310> to<00:12:46.340> decentralize<00:12:47.000> PayPal<00:12:47.530> have<00:12:48.530> an 00:12:48.670 --> 00:12:48.680 align:start position:0% want to decentralize PayPal have an 00:12:48.680 --> 00:12:50.380 align:start position:0% want to decentralize PayPal have an electronic<00:12:49.250> cash<00:12:49.490> for<00:12:49.760> the<00:12:49.850> Internet 00:12:50.380 --> 00:12:50.390 align:start position:0% electronic cash for the Internet 00:12:50.390 --> 00:12:51.970 align:start position:0% electronic cash for the Internet well<00:12:50.480> we<00:12:50.690> have<00:12:50.780> a<00:12:50.810> network<00:12:51.170> of<00:12:51.290> computers<00:12:51.800> we 00:12:51.970 --> 00:12:51.980 align:start position:0% well we have a network of computers we 00:12:51.980 --> 00:12:54.070 align:start position:0% well we have a network of computers we network<00:12:52.280> them<00:12:52.430> together<00:12:52.580> we<00:12:53.300> use<00:12:53.510> public<00:12:53.960> key 00:12:54.070 --> 00:12:54.080 align:start position:0% network them together we use public key 00:12:54.080 --> 00:12:55.870 align:start position:0% network them together we use public key cryptography<00:12:54.500> so<00:12:54.980> that<00:12:55.130> every<00:12:55.370> node<00:12:55.580> can 00:12:55.870 --> 00:12:55.880 align:start position:0% cryptography so that every node can 00:12:55.880 --> 00:12:58.090 align:start position:0% cryptography so that every node can verify<00:12:56.090> passwords<00:12:56.840> effectively<00:12:57.530> we<00:12:57.890> use<00:12:58.070> a 00:12:58.090 --> 00:12:58.100 align:start position:0% verify passwords effectively we use a 00:12:58.100 --> 00:12:59.070 align:start position:0% verify passwords effectively we use a distributed<00:12:58.550> lead 00:12:59.070 --> 00:12:59.080 align:start position:0% distributed lead 00:12:59.080 --> 00:13:00.570 align:start position:0% distributed lead like<00:12:59.290> a<00:12:59.320> blockchain<00:12:59.590> so<00:13:00.010> that<00:13:00.130> every<00:13:00.400> nodes 00:13:00.570 --> 00:13:00.580 align:start position:0% like a blockchain so that every nodes 00:13:00.580 --> 00:13:02.820 align:start position:0% like a blockchain so that every nodes keeping<00:13:00.970> track<00:13:01.180> of<00:13:01.210> valid<00:13:01.630> transactions<00:13:02.260> but 00:13:02.820 --> 00:13:02.830 align:start position:0% keeping track of valid transactions but 00:13:02.830 --> 00:13:04.590 align:start position:0% keeping track of valid transactions but where's<00:13:03.100> the<00:13:03.190> oversight<00:13:03.820> there<00:13:04.150> is<00:13:04.330> no 00:13:04.590 --> 00:13:04.600 align:start position:0% where's the oversight there is no 00:13:04.600 --> 00:13:06.540 align:start position:0% where's the oversight there is no corporation<00:13:05.140> so<00:13:05.620> who's<00:13:05.830> doing<00:13:06.190> this 00:13:06.540 --> 00:13:06.550 align:start position:0% corporation so who's doing this 00:13:06.550 --> 00:13:09.360 align:start position:0% corporation so who's doing this nobody<00:13:07.110> every<00:13:08.110> participant<00:13:08.710> in<00:13:08.890> the<00:13:09.010> network 00:13:09.360 --> 00:13:09.370 align:start position:0% nobody every participant in the network 00:13:09.370 --> 00:13:11.430 align:start position:0% nobody every participant in the network is<00:13:09.580> directly<00:13:10.000> incentivized<00:13:10.780> because<00:13:11.290> they're 00:13:11.430 --> 00:13:11.440 align:start position:0% is directly incentivized because they're 00:13:11.440 --> 00:13:13.170 align:start position:0% is directly incentivized because they're awarded<00:13:11.920> tokens<00:13:12.340> for<00:13:12.520> doing<00:13:12.790> their<00:13:12.910> job<00:13:13.150> well 00:13:13.170 --> 00:13:13.180 align:start position:0% awarded tokens for doing their job well 00:13:13.180 --> 00:13:16.110 align:start position:0% awarded tokens for doing their job well to<00:13:14.140> actually<00:13:14.680> help<00:13:14.920> provide<00:13:15.280> the<00:13:15.490> service 00:13:16.110 --> 00:13:16.120 align:start position:0% to actually help provide the service 00:13:16.120 --> 00:13:17.730 align:start position:0% to actually help provide the service that's<00:13:16.450> how<00:13:16.600> mining<00:13:17.050> works<00:13:17.290> that's<00:13:17.590> how 00:13:17.730 --> 00:13:17.740 align:start position:0% that's how mining works that's how 00:13:17.740 --> 00:13:19.560 align:start position:0% that's how mining works that's how Bitcoin<00:13:17.980> works<00:13:18.220> this<00:13:18.970> is<00:13:19.150> still<00:13:19.390> pretty 00:13:19.560 --> 00:13:19.570 align:start position:0% Bitcoin works this is still pretty 00:13:19.570 --> 00:13:21.270 align:start position:0% Bitcoin works this is still pretty radical<00:13:20.170> although<00:13:20.500> everyone<00:13:20.890> in<00:13:20.980> the<00:13:21.040> room<00:13:21.190> is 00:13:21.270 --> 00:13:21.280 align:start position:0% radical although everyone in the room is 00:13:21.280 --> 00:13:22.500 align:start position:0% radical although everyone in the room is pretty<00:13:21.400> comfortable<00:13:21.880> with<00:13:22.000> it<00:13:22.210> at<00:13:22.300> this<00:13:22.390> point 00:13:22.500 --> 00:13:22.510 align:start position:0% pretty comfortable with it at this point 00:13:22.510 --> 00:13:25.860 align:start position:0% pretty comfortable with it at this point that's<00:13:23.350> more<00:13:23.860> of<00:13:24.010> a<00:13:24.100> networked<00:13:24.640> token<00:13:25.360> rather 00:13:25.860 --> 00:13:25.870 align:start position:0% that's more of a networked token rather 00:13:25.870 --> 00:13:28.770 align:start position:0% that's more of a networked token rather than<00:13:26.080> an<00:13:26.200> issuer<00:13:26.590> backed<00:13:26.980> token<00:13:27.700> and<00:13:28.000> we<00:13:28.660> can 00:13:28.770 --> 00:13:28.780 align:start position:0% than an issuer backed token and we can 00:13:28.780 --> 00:13:30.030 align:start position:0% than an issuer backed token and we can do<00:13:28.900> the<00:13:28.990> same<00:13:29.140> thing<00:13:29.410> with<00:13:29.590> something<00:13:29.800> else 00:13:30.030 --> 00:13:30.040 align:start position:0% do the same thing with something else 00:13:30.040 --> 00:13:31.950 align:start position:0% do the same thing with something else like<00:13:30.310> cloud<00:13:30.520> storage<00:13:31.000> again<00:13:31.480> this<00:13:31.660> is<00:13:31.780> how<00:13:31.900> we 00:13:31.950 --> 00:13:31.960 align:start position:0% like cloud storage again this is how we 00:13:31.960 --> 00:13:33.840 align:start position:0% like cloud storage again this is how we explain<00:13:32.290> it<00:13:32.440> to<00:13:32.530> Congress<00:13:32.830> the<00:13:33.640> only 00:13:33.840 --> 00:13:33.850 align:start position:0% explain it to Congress the only 00:13:33.850 --> 00:13:35.760 align:start position:0% explain it to Congress the only difference<00:13:34.180> is<00:13:34.330> now<00:13:34.360> every<00:13:34.930> node<00:13:35.140> is<00:13:35.320> adding 00:13:35.760 --> 00:13:35.770 align:start position:0% difference is now every node is adding 00:13:35.770 --> 00:13:37.440 align:start position:0% difference is now every node is adding their<00:13:35.950> spare<00:13:36.250> hard<00:13:36.460> drive<00:13:36.640> capacity<00:13:36.850> so 00:13:37.440 --> 00:13:37.450 align:start position:0% their spare hard drive capacity so 00:13:37.450 --> 00:13:39.210 align:start position:0% their spare hard drive capacity so something<00:13:37.750> like<00:13:37.780> swarm<00:13:38.230> or<00:13:38.500> file<00:13:38.680> point<00:13:39.010> or 00:13:39.210 --> 00:13:39.220 align:start position:0% something like swarm or file point or 00:13:39.220 --> 00:13:41.430 align:start position:0% something like swarm or file point or SIA<00:13:39.460> or<00:13:39.790> all<00:13:39.910> the<00:13:40.060> effort<00:13:40.300> projects<00:13:41.140> trying<00:13:41.350> to 00:13:41.430 --> 00:13:41.440 align:start position:0% SIA or all the effort projects trying to 00:13:41.440 --> 00:13:44.790 align:start position:0% SIA or all the effort projects trying to make<00:13:41.590> this<00:13:41.740> work<00:13:41.980> and<00:13:43.530> every<00:13:44.530> node<00:13:44.680> is 00:13:44.790 --> 00:13:44.800 align:start position:0% make this work and every node is 00:13:44.800 --> 00:13:46.500 align:start position:0% make this work and every node is incentivized<00:13:45.370> to<00:13:45.460> behave<00:13:45.670> honestly<00:13:46.150> because 00:13:46.500 --> 00:13:46.510 align:start position:0% incentivized to behave honestly because 00:13:46.510 --> 00:13:49.710 align:start position:0% incentivized to behave honestly because of<00:13:46.720> the<00:13:46.930> tokens<00:13:47.670> so<00:13:48.670> now<00:13:49.060> that<00:13:49.120> we<00:13:49.360> have<00:13:49.570> these 00:13:49.710 --> 00:13:49.720 align:start position:0% of the tokens so now that we have these 00:13:49.720 --> 00:13:53.490 align:start position:0% of the tokens so now that we have these two<00:13:49.990> dimensions<00:13:50.650> we<00:13:51.520> can<00:13:51.550> graph<00:13:51.940> them<00:13:52.500> maybe 00:13:53.490 --> 00:13:53.500 align:start position:0% two dimensions we can graph them maybe 00:13:53.500 --> 00:13:55.680 align:start position:0% two dimensions we can graph them maybe to<00:13:53.680> get<00:13:53.800> a<00:13:53.860> geometric<00:13:54.640> handle<00:13:55.060> on<00:13:55.300> the<00:13:55.420> issues 00:13:55.680 --> 00:13:55.690 align:start position:0% to get a geometric handle on the issues 00:13:55.690 --> 00:13:57.840 align:start position:0% to get a geometric handle on the issues at<00:13:55.870> hand<00:13:55.990> with<00:13:56.230> respect<00:13:56.350> to<00:13:56.650> tokens<00:13:57.010> will<00:13:57.610> put 00:13:57.840 --> 00:13:57.850 align:start position:0% at hand with respect to tokens will put 00:13:57.850 --> 00:14:00.090 align:start position:0% at hand with respect to tokens will put useful<00:13:58.780> tokens<00:13:59.230> on<00:13:59.380> the<00:13:59.470> bottom<00:13:59.770> of<00:13:59.830> the<00:13:59.920> graph 00:14:00.090 --> 00:14:00.100 align:start position:0% useful tokens on the bottom of the graph 00:14:00.100 --> 00:14:01.650 align:start position:0% useful tokens on the bottom of the graph and<00:14:00.340> we'll<00:14:00.550> put<00:14:00.700> investment<00:14:01.240> tokens<00:14:01.510> on<00:14:01.630> the 00:14:01.650 --> 00:14:01.660 align:start position:0% and we'll put investment tokens on the 00:14:01.660 --> 00:14:04.920 align:start position:0% and we'll put investment tokens on the top<00:14:01.930> will<00:14:02.860> put<00:14:03.130> Network<00:14:03.730> backed<00:14:04.120> tokens<00:14:04.750> on 00:14:04.920 --> 00:14:04.930 align:start position:0% top will put Network backed tokens on 00:14:04.930 --> 00:14:07.260 align:start position:0% top will put Network backed tokens on the<00:14:04.960> left<00:14:05.230> and<00:14:05.590> we'll<00:14:06.220> put<00:14:06.430> issue<00:14:06.670> or<00:14:07.090> back 00:14:07.260 --> 00:14:07.270 align:start position:0% the left and we'll put issue or back 00:14:07.270 --> 00:14:09.180 align:start position:0% the left and we'll put issue or back tokens<00:14:07.660> on<00:14:07.810> the<00:14:07.930> right<00:14:08.080> now<00:14:08.530> I'm<00:14:08.740> not<00:14:08.950> going<00:14:09.130> to 00:14:09.180 --> 00:14:09.190 align:start position:0% tokens on the right now I'm not going to 00:14:09.190 --> 00:14:10.710 align:start position:0% tokens on the right now I'm not going to put<00:14:09.370> specific<00:14:09.820> projects<00:14:10.210> on<00:14:10.330> this<00:14:10.450> graph 00:14:10.710 --> 00:14:10.720 align:start position:0% put specific projects on this graph 00:14:10.720 --> 00:14:11.730 align:start position:0% put specific projects on this graph because<00:14:10.930> that's<00:14:11.260> none<00:14:11.410> of<00:14:11.440> my<00:14:11.530> business 00:14:11.730 --> 00:14:11.740 align:start position:0% because that's none of my business 00:14:11.740 --> 00:14:13.980 align:start position:0% because that's none of my business really<00:14:12.130> what<00:14:12.970> I<00:14:13.000> am<00:14:13.150> going<00:14:13.390> to<00:14:13.450> do<00:14:13.570> is<00:14:13.750> show<00:14:13.960> you 00:14:13.980 --> 00:14:13.990 align:start position:0% really what I am going to do is show you 00:14:13.990 --> 00:14:16.740 align:start position:0% really what I am going to do is show you the<00:14:14.140> background<00:14:14.380> case<00:14:14.830> law<00:14:15.210> so<00:14:16.210> here's<00:14:16.510> Tim 00:14:16.740 --> 00:14:16.750 align:start position:0% the background case law so here's Tim 00:14:16.750 --> 00:14:19.080 align:start position:0% the background case law so here's Tim Cook<00:14:16.990> this<00:14:17.620> is<00:14:17.770> a<00:14:17.800> security<00:14:18.310> we<00:14:18.700> know<00:14:18.880> that 00:14:19.080 --> 00:14:19.090 align:start position:0% Cook this is a security we know that 00:14:19.090 --> 00:14:21.300 align:start position:0% Cook this is a security we know that upper<00:14:19.480> right<00:14:19.690> quadrant<00:14:19.900> backed<00:14:20.620> by<00:14:20.860> an<00:14:20.950> issuer 00:14:21.300 --> 00:14:21.310 align:start position:0% upper right quadrant backed by an issuer 00:14:21.310 --> 00:14:23.100 align:start position:0% upper right quadrant backed by an issuer and<00:14:21.610> sold<00:14:21.850> as<00:14:22.030> an<00:14:22.120> investment<00:14:22.510> shares<00:14:22.930> of 00:14:23.100 --> 00:14:23.110 align:start position:0% and sold as an investment shares of 00:14:23.110 --> 00:14:25.380 align:start position:0% and sold as an investment shares of Apple<00:14:23.230> stock<00:14:23.590> here's<00:14:24.370> where<00:14:24.610> gold<00:14:24.880> would<00:14:25.210> be 00:14:25.380 --> 00:14:25.390 align:start position:0% Apple stock here's where gold would be 00:14:25.390 --> 00:14:27.540 align:start position:0% Apple stock here's where gold would be some<00:14:25.870> people<00:14:26.020> use<00:14:26.380> it<00:14:26.590> some<00:14:26.980> people<00:14:27.280> want<00:14:27.490> it 00:14:27.540 --> 00:14:27.550 align:start position:0% some people use it some people want it 00:14:27.550 --> 00:14:29.460 align:start position:0% some people use it some people want it to<00:14:27.700> invest<00:14:28.060> but<00:14:28.510> it's<00:14:28.660> a<00:14:28.750> decentralized 00:14:29.460 --> 00:14:29.470 align:start position:0% to invest but it's a decentralized 00:14:29.470 --> 00:14:32.190 align:start position:0% to invest but it's a decentralized network<00:14:29.620> that<00:14:30.040> makes<00:14:30.220> gold<00:14:30.550> valuable<00:14:31.270> here's 00:14:32.190 --> 00:14:32.200 align:start position:0% network that makes gold valuable here's 00:14:32.200 --> 00:14:36.270 align:start position:0% network that makes gold valuable here's real<00:14:32.860> estate<00:14:33.340> oil<00:14:33.960> gas<00:14:34.960> things<00:14:35.860> that<00:14:36.190> are 00:14:36.270 --> 00:14:36.280 align:start position:0% real estate oil gas things that are 00:14:36.280 --> 00:14:38.130 align:start position:0% real estate oil gas things that are valuable<00:14:36.430> commodities<00:14:37.360> where<00:14:37.900> there's<00:14:38.050> a 00:14:38.130 --> 00:14:38.140 align:start position:0% valuable commodities where there's a 00:14:38.140 --> 00:14:39.930 align:start position:0% valuable commodities where there's a decentralized<00:14:38.830> network<00:14:39.160> and<00:14:39.370> markets 00:14:39.930 --> 00:14:39.940 align:start position:0% decentralized network and markets 00:14:39.940 --> 00:14:42.510 align:start position:0% decentralized network and markets effectively<00:14:40.570> that<00:14:40.750> create<00:14:41.020> the<00:14:41.200> value<00:14:41.590> up 00:14:42.510 --> 00:14:42.520 align:start position:0% effectively that create the value up 00:14:42.520 --> 00:14:46.140 align:start position:0% effectively that create the value up here<00:14:42.700> our<00:14:43.390> member<00:14:44.110> managed<00:14:44.590> LLC's<00:14:45.580> so 00:14:46.140 --> 00:14:46.150 align:start position:0% here our member managed LLC's so 00:14:46.150 --> 00:14:48.450 align:start position:0% here our member managed LLC's so corporations<00:14:47.110> that<00:14:47.380> could<00:14:47.590> be<00:14:47.740> for-profit 00:14:48.450 --> 00:14:48.460 align:start position:0% corporations that could be for-profit 00:14:48.460 --> 00:14:51.390 align:start position:0% corporations that could be for-profit where<00:14:49.210> every<00:14:49.750> individual<00:14:50.440> shareholder<00:14:51.190> is 00:14:51.390 --> 00:14:51.400 align:start position:0% where every individual shareholder is 00:14:51.400 --> 00:14:54.420 align:start position:0% where every individual shareholder is actually<00:14:52.240> deciding<00:14:53.020> the<00:14:53.140> ultimate<00:14:53.560> fate<00:14:53.830> fate 00:14:54.420 --> 00:14:54.430 align:start position:0% actually deciding the ultimate fate fate 00:14:54.430 --> 00:14:58.530 align:start position:0% actually deciding the ultimate fate fate of<00:14:54.700> the<00:14:54.850> enterprise<00:14:55.770> here<00:14:56.770> we<00:14:56.980> have<00:14:57.540> loyalty 00:14:58.530 --> 00:14:58.540 align:start position:0% of the enterprise here we have loyalty 00:14:58.540 --> 00:15:01.260 align:start position:0% of the enterprise here we have loyalty cards<00:14:59.080> Country<00:15:00.010> Club<00:15:00.280> memberships<00:15:00.940> things 00:15:01.260 --> 00:15:01.270 align:start position:0% cards Country Club memberships things 00:15:01.270 --> 00:15:03.090 align:start position:0% cards Country Club memberships things like<00:15:01.480> that<00:15:01.690> we're<00:15:02.110> relying<00:15:02.440> on<00:15:02.710> the<00:15:02.800> person 00:15:03.090 --> 00:15:03.100 align:start position:0% like that we're relying on the person 00:15:03.100 --> 00:15:04.500 align:start position:0% like that we're relying on the person who<00:15:03.220> built<00:15:03.340> the<00:15:03.520> golf<00:15:03.730> course<00:15:04.060> to<00:15:04.300> make<00:15:04.480> it 00:15:04.500 --> 00:15:04.510 align:start position:0% who built the golf course to make it 00:15:04.510 --> 00:15:07.140 align:start position:0% who built the golf course to make it valuable<00:15:05.200> but<00:15:05.920> it<00:15:06.280> really<00:15:06.610> is<00:15:06.730> something<00:15:06.970> you 00:15:07.140 --> 00:15:07.150 align:start position:0% valuable but it really is something you 00:15:07.150 --> 00:15:09.240 align:start position:0% valuable but it really is something you use<00:15:07.300> you<00:15:07.870> go<00:15:08.050> in<00:15:08.170> your<00:15:08.320> golf<00:15:08.530> usually<00:15:09.100> these 00:15:09.240 --> 00:15:09.250 align:start position:0% use you go in your golf usually these 00:15:09.250 --> 00:15:11.130 align:start position:0% use you go in your golf usually these have<00:15:09.430> restrictions<00:15:09.820> on<00:15:10.120> transferability<00:15:10.810> as 00:15:11.130 --> 00:15:11.140 align:start position:0% have restrictions on transferability as 00:15:11.140 --> 00:15:12.540 align:start position:0% have restrictions on transferability as well<00:15:11.350> though<00:15:11.590> two<00:15:11.650> two 00:15:12.540 --> 00:15:12.550 align:start position:0% well though two two 00:15:12.550 --> 00:15:15.690 align:start position:0% well though two two put<00:15:13.000> a<00:15:13.029> put<00:15:13.450> a<00:15:13.480> stop<00:15:13.990> into<00:15:14.350> speculation<00:15:15.339> about 00:15:15.690 --> 00:15:15.700 align:start position:0% put a put a stop into speculation about 00:15:15.700 --> 00:15:17.430 align:start position:0% put a put a stop into speculation about their<00:15:15.850> value<00:15:16.240> and<00:15:16.480> here<00:15:17.230> we<00:15:17.290> could<00:15:17.380> have 00:15:17.430 --> 00:15:17.440 align:start position:0% their value and here we could have 00:15:17.440 --> 00:15:19.199 align:start position:0% their value and here we could have theater<00:15:18.010> tickets<00:15:18.399> where<00:15:18.730> there's<00:15:18.880> a<00:15:18.940> group<00:15:19.089> of 00:15:19.199 --> 00:15:19.209 align:start position:0% theater tickets where there's a group of 00:15:19.209 --> 00:15:21.269 align:start position:0% theater tickets where there's a group of artists<00:15:19.660> that<00:15:19.720> provide<00:15:20.110> the<00:15:20.260> value<00:15:20.620> and<00:15:20.800> here 00:15:21.269 --> 00:15:21.279 align:start position:0% artists that provide the value and here 00:15:21.279 --> 00:15:23.310 align:start position:0% artists that provide the value and here this<00:15:21.459> is<00:15:21.519> kind<00:15:21.760> of<00:15:21.880> interesting<00:15:22.029> and<00:15:22.630> I<00:15:23.110> put 00:15:23.310 --> 00:15:23.320 align:start position:0% this is kind of interesting and I put 00:15:23.320 --> 00:15:24.329 align:start position:0% this is kind of interesting and I put this<00:15:23.440> here<00:15:23.560> because<00:15:23.709> there's<00:15:23.950> a<00:15:24.040> line<00:15:24.190> of 00:15:24.329 --> 00:15:24.339 align:start position:0% this here because there's a line of 00:15:24.339 --> 00:15:25.980 align:start position:0% this here because there's a line of cases<00:15:24.519> that<00:15:24.790> talk<00:15:25.149> about<00:15:25.209> this<00:15:25.660> fact<00:15:25.899> pattern 00:15:25.980 --> 00:15:25.990 align:start position:0% cases that talk about this fact pattern 00:15:25.990 --> 00:15:27.930 align:start position:0% cases that talk about this fact pattern where<00:15:26.740> somebody<00:15:27.100> sold<00:15:27.370> someone<00:15:27.760> something 00:15:27.930 --> 00:15:27.940 align:start position:0% where somebody sold someone something 00:15:27.940 --> 00:15:30.600 align:start position:0% where somebody sold someone something like<00:15:28.060> a<00:15:28.209> barrel<00:15:28.660> of<00:15:28.779> whiskey<00:15:28.959> and<00:15:29.440> said<00:15:30.070> we'll 00:15:30.600 --> 00:15:30.610 align:start position:0% like a barrel of whiskey and said we'll 00:15:30.610 --> 00:15:32.430 align:start position:0% like a barrel of whiskey and said we'll store<00:15:30.910> it<00:15:30.940> for<00:15:31.360> you<00:15:31.510> and<00:15:31.690> it's<00:15:31.930> really<00:15:31.990> good 00:15:32.430 --> 00:15:32.440 align:start position:0% store it for you and it's really good 00:15:32.440 --> 00:15:34.680 align:start position:0% store it for you and it's really good whiskey<00:15:32.890> don't<00:15:33.190> worry<00:15:33.459> about<00:15:33.610> it<00:15:33.970> and<00:15:34.120> we'll 00:15:34.680 --> 00:15:34.690 align:start position:0% whiskey don't worry about it and we'll 00:15:34.690 --> 00:15:36.509 align:start position:0% whiskey don't worry about it and we'll find<00:15:34.990> people<00:15:35.410> who<00:15:35.560> will<00:15:35.709> want<00:15:35.860> to<00:15:36.010> buy<00:15:36.160> it<00:15:36.220> in 00:15:36.509 --> 00:15:36.519 align:start position:0% find people who will want to buy it in 00:15:36.519 --> 00:15:40.050 align:start position:0% find people who will want to buy it in 20<00:15:36.880> years<00:15:37.120> when<00:15:37.390> it<00:15:37.540> ages<00:15:37.990> and<00:15:38.610> it's<00:15:39.610> sold<00:15:39.910> as 00:15:40.050 --> 00:15:40.060 align:start position:0% 20 years when it ages and it's sold as 00:15:40.060 --> 00:15:41.819 align:start position:0% 20 years when it ages and it's sold as an<00:15:40.149> investment<00:15:40.570> and<00:15:40.839> all<00:15:41.320> you<00:15:41.470> get<00:15:41.649> is<00:15:41.800> a 00:15:41.819 --> 00:15:41.829 align:start position:0% an investment and all you get is a 00:15:41.829 --> 00:15:43.920 align:start position:0% an investment and all you get is a receipt<00:15:42.370> for<00:15:42.640> the<00:15:42.730> warehouse<00:15:42.940> and<00:15:43.540> it's 00:15:43.920 --> 00:15:43.930 align:start position:0% receipt for the warehouse and it's 00:15:43.930 --> 00:15:45.389 align:start position:0% receipt for the warehouse and it's always<00:15:44.050> claimed<00:15:44.410> like<00:15:44.620> oh<00:15:44.740> well<00:15:44.920> you<00:15:45.010> can<00:15:45.220> get 00:15:45.389 --> 00:15:45.399 align:start position:0% always claimed like oh well you can get 00:15:45.399 --> 00:15:46.920 align:start position:0% always claimed like oh well you can get it<00:15:45.550> take<00:15:45.850> it<00:15:45.970> and<00:15:46.089> drink<00:15:46.240> your<00:15:46.420> whiskey<00:15:46.510> at<00:15:46.810> any 00:15:46.920 --> 00:15:46.930 align:start position:0% it take it and drink your whiskey at any 00:15:46.930 --> 00:15:48.750 align:start position:0% it take it and drink your whiskey at any point<00:15:47.260> but<00:15:47.860> nobody<00:15:48.220> does<00:15:48.430> that 00:15:48.750 --> 00:15:48.760 align:start position:0% point but nobody does that 00:15:48.760 --> 00:15:50.730 align:start position:0% point but nobody does that and<00:15:48.970> everybody<00:15:49.450> knows<00:15:49.630> what's<00:15:49.870> going<00:15:50.140> on<00:15:50.260> here 00:15:50.730 --> 00:15:50.740 align:start position:0% and everybody knows what's going on here 00:15:50.740 --> 00:15:53.190 align:start position:0% and everybody knows what's going on here the<00:15:51.279> whiskey<00:15:51.730> distillery<00:15:52.209> is<00:15:52.480> selling<00:15:52.899> shares 00:15:53.190 --> 00:15:53.200 align:start position:0% the whiskey distillery is selling shares 00:15:53.200 --> 00:15:55.079 align:start position:0% the whiskey distillery is selling shares of<00:15:53.410> its<00:15:53.470> profit-making<00:15:54.070> whiskey<00:15:54.579> enterprise 00:15:55.079 --> 00:15:55.089 align:start position:0% of its profit-making whiskey enterprise 00:15:55.089 --> 00:15:58.949 align:start position:0% of its profit-making whiskey enterprise and<00:15:56.399> now<00:15:57.399> we<00:15:57.459> have<00:15:57.700> tokens<00:15:58.089> that<00:15:58.180> basically<00:15:58.750> do 00:15:58.949 --> 00:15:58.959 align:start position:0% and now we have tokens that basically do 00:15:58.959 --> 00:16:00.259 align:start position:0% and now we have tokens that basically do all<00:15:58.990> of<00:15:59.230> these<00:15:59.500> different<00:15:59.680> things 00:16:00.259 --> 00:16:00.269 align:start position:0% all of these different things 00:16:00.269 --> 00:16:02.579 align:start position:0% all of these different things we<00:16:01.269> definitely<00:16:01.450> have<00:16:01.810> electronic<00:16:02.350> gold 00:16:02.579 --> 00:16:02.589 align:start position:0% we definitely have electronic gold 00:16:02.589 --> 00:16:05.250 align:start position:0% we definitely have electronic gold tokens<00:16:03.220> we<00:16:03.490> definitely<00:16:03.910> have<00:16:04.060> electronic<00:16:04.870> gas 00:16:05.250 --> 00:16:05.260 align:start position:0% tokens we definitely have electronic gas 00:16:05.260 --> 00:16:08.220 align:start position:0% tokens we definitely have electronic gas tokens<00:16:06.130> we<00:16:06.370> have<00:16:06.610> real<00:16:07.240> estate<00:16:07.360> tokens<00:16:08.050> that 00:16:08.220 --> 00:16:08.230 align:start position:0% tokens we have real estate tokens that 00:16:08.230 --> 00:16:10.530 align:start position:0% tokens we have real estate tokens that are<00:16:08.620> digital<00:16:09.070> which<00:16:09.640> would<00:16:09.820> be<00:16:09.910> digital<00:16:10.390> real 00:16:10.530 --> 00:16:10.540 align:start position:0% are digital which would be digital real 00:16:10.540 --> 00:16:14.150 align:start position:0% are digital which would be digital real estate<00:16:10.839> or<00:16:11.019> gigabytes<00:16:11.560> we<00:16:12.220> have<00:16:12.459> member<00:16:13.300> run 00:16:14.150 --> 00:16:14.160 align:start position:0% estate or gigabytes we have member run 00:16:14.160 --> 00:16:16.620 align:start position:0% estate or gigabytes we have member run enterprises<00:16:15.160> for<00:16:15.399> profit<00:16:15.940> that<00:16:16.329> may<00:16:16.570> be 00:16:16.620 --> 00:16:16.630 align:start position:0% enterprises for profit that may be 00:16:16.630 --> 00:16:18.120 align:start position:0% enterprises for profit that may be member<00:16:17.079> run<00:16:17.230> or<00:16:17.440> may<00:16:17.620> actually<00:16:17.829> have 00:16:18.120 --> 00:16:18.130 align:start position:0% member run or may actually have 00:16:18.130 --> 00:16:22.199 align:start position:0% member run or may actually have centralized<00:16:18.640> control<00:16:19.089> and<00:16:19.950> here<00:16:21.209> basically 00:16:22.199 --> 00:16:22.209 align:start position:0% centralized control and here basically 00:16:22.209 --> 00:16:25.079 align:start position:0% centralized control and here basically is<00:16:22.420> the<00:16:22.750> SCC's<00:16:23.290> possible<00:16:24.070> jurisdiction<00:16:24.820> the 00:16:25.079 --> 00:16:25.089 align:start position:0% is the SCC's possible jurisdiction the 00:16:25.089 --> 00:16:27.000 align:start position:0% is the SCC's possible jurisdiction the security<00:16:25.480> is<00:16:25.540> regulated<00:16:25.990> in<00:16:26.020> the<00:16:26.079> u.s.<00:16:26.170> they 00:16:27.000 --> 00:16:27.010 align:start position:0% security is regulated in the u.s. they 00:16:27.010 --> 00:16:29.730 align:start position:0% security is regulated in the u.s. they have<00:16:27.040> a<00:16:27.399> flexible<00:16:28.089> test<00:16:28.540> so<00:16:29.170> this<00:16:29.410> is<00:16:29.589> an 00:16:29.730 --> 00:16:29.740 align:start position:0% have a flexible test so this is an 00:16:29.740 --> 00:16:32.940 align:start position:0% have a flexible test so this is an amorphous<00:16:30.420> geometry<00:16:31.420> it<00:16:32.079> could<00:16:32.380> be<00:16:32.529> like<00:16:32.709> this 00:16:32.940 --> 00:16:32.950 align:start position:0% amorphous geometry it could be like this 00:16:32.950 --> 00:16:34.920 align:start position:0% amorphous geometry it could be like this now<00:16:33.459> what's<00:16:33.790> interesting<00:16:33.970> about<00:16:34.300> this<00:16:34.600> well 00:16:34.920 --> 00:16:34.930 align:start position:0% now what's interesting about this well 00:16:34.930 --> 00:16:37.769 align:start position:0% now what's interesting about this well if<00:16:35.079> you<00:16:35.230> sell<00:16:35.529> a<00:16:35.560> token<00:16:36.070> that<00:16:36.250> is<00:16:36.970> actually<00:16:37.750> a 00:16:37.769 --> 00:16:37.779 align:start position:0% if you sell a token that is actually a 00:16:37.779 --> 00:16:39.690 align:start position:0% if you sell a token that is actually a revenue<00:16:38.380> stream<00:16:38.560> from<00:16:38.800> a<00:16:38.890> corporation<00:16:39.459> like<00:16:39.670> a 00:16:39.690 --> 00:16:39.700 align:start position:0% revenue stream from a corporation like a 00:16:39.700 --> 00:16:41.670 align:start position:0% revenue stream from a corporation like a share<00:16:40.000> of<00:16:40.029> Apple<00:16:40.360> stock<00:16:40.540> the<00:16:41.140> tokens<00:16:41.529> of 00:16:41.670 --> 00:16:41.680 align:start position:0% share of Apple stock the tokens of 00:16:41.680 --> 00:16:43.139 align:start position:0% share of Apple stock the tokens of security<00:16:42.190> it<00:16:42.279> doesn't<00:16:42.550> matter<00:16:42.700> if<00:16:42.910> it's<00:16:43.060> a 00:16:43.139 --> 00:16:43.149 align:start position:0% security it doesn't matter if it's a 00:16:43.149 --> 00:16:46.110 align:start position:0% security it doesn't matter if it's a token<00:16:43.420> rather<00:16:43.990> than<00:16:44.200> a<00:16:44.230> stock<00:16:44.529> certificate<00:16:45.120> if 00:16:46.110 --> 00:16:46.120 align:start position:0% token rather than a stock certificate if 00:16:46.120 --> 00:16:48.540 align:start position:0% token rather than a stock certificate if you<00:16:46.480> are<00:16:46.839> selling<00:16:47.290> warehouse<00:16:47.800> receipts<00:16:48.310> for<00:16:48.520> a 00:16:48.540 --> 00:16:48.550 align:start position:0% you are selling warehouse receipts for a 00:16:48.550 --> 00:16:50.670 align:start position:0% you are selling warehouse receipts for a speculative<00:16:49.089> good<00:16:49.390> that<00:16:49.660> that<00:16:50.020> is<00:16:50.200> being<00:16:50.410> sold 00:16:50.670 --> 00:16:50.680 align:start position:0% speculative good that that is being sold 00:16:50.680 --> 00:16:52.380 align:start position:0% speculative good that that is being sold as<00:16:50.890> an<00:16:51.040> investment<00:16:51.490> and<00:16:51.820> no<00:16:52.029> one's<00:16:52.180> actually 00:16:52.380 --> 00:16:52.390 align:start position:0% as an investment and no one's actually 00:16:52.390 --> 00:16:53.940 align:start position:0% as an investment and no one's actually taking<00:16:52.959> delivery<00:16:53.410> of<00:16:53.560> it<00:16:53.709> or<00:16:53.860> the 00:16:53.940 --> 00:16:53.950 align:start position:0% taking delivery of it or the 00:16:53.950 --> 00:16:56.220 align:start position:0% taking delivery of it or the functionality<00:16:54.640> is<00:16:54.760> never<00:16:54.970> realized<00:16:55.449> that's 00:16:56.220 --> 00:16:56.230 align:start position:0% functionality is never realized that's 00:16:56.230 --> 00:16:58.829 align:start position:0% functionality is never realized that's probably<00:16:56.770> a<00:16:56.860> security<00:16:57.329> now<00:16:58.329> where<00:16:58.510> things<00:16:58.720> get 00:16:58.829 --> 00:16:58.839 align:start position:0% probably a security now where things get 00:16:58.839 --> 00:17:00.360 align:start position:0% probably a security now where things get really<00:16:58.899> tricky<00:16:59.470> and<00:16:59.500> interesting<00:17:00.100> is<00:17:00.250> the 00:17:00.360 --> 00:17:00.370 align:start position:0% really tricky and interesting is the 00:17:00.370 --> 00:17:02.430 align:start position:0% really tricky and interesting is the upper<00:17:00.760> left<00:17:01.029> quadrant<00:17:01.300> and<00:17:01.810> the<00:17:01.899> lower<00:17:02.110> right 00:17:02.430 --> 00:17:02.440 align:start position:0% upper left quadrant and the lower right 00:17:02.440 --> 00:17:04.710 align:start position:0% upper left quadrant and the lower right quadrant<00:17:02.709> you<00:17:03.550> have<00:17:03.670> a<00:17:03.699> member<00:17:04.179> run<00:17:04.390> for 00:17:04.710 --> 00:17:04.720 align:start position:0% quadrant you have a member run for 00:17:04.720 --> 00:17:07.260 align:start position:0% quadrant you have a member run for profit<00:17:05.140> organization<00:17:05.829> if<00:17:06.010> it's<00:17:06.610> really<00:17:07.059> run 00:17:07.260 --> 00:17:07.270 align:start position:0% profit organization if it's really run 00:17:07.270 --> 00:17:09.780 align:start position:0% profit organization if it's really run by<00:17:07.300> the<00:17:07.510> members<00:17:07.959> it's<00:17:08.319> out<00:17:08.589> here<00:17:08.949> if<00:17:09.100> there's 00:17:09.780 --> 00:17:09.790 align:start position:0% by the members it's out here if there's 00:17:09.790 --> 00:17:11.549 align:start position:0% by the members it's out here if there's a<00:17:09.880> few<00:17:10.120> centralized<00:17:10.720> parties<00:17:11.199> that<00:17:11.439> are 00:17:11.549 --> 00:17:11.559 align:start position:0% a few centralized parties that are 00:17:11.559 --> 00:17:13.020 align:start position:0% a few centralized parties that are really<00:17:11.800> promoting<00:17:12.309> it<00:17:12.429> and<00:17:12.579> making<00:17:12.790> it 00:17:13.020 --> 00:17:13.030 align:start position:0% really promoting it and making it 00:17:13.030 --> 00:17:16.579 align:start position:0% really promoting it and making it function<00:17:13.480> it's<00:17:14.470> in<00:17:14.679> the<00:17:14.800> securities<00:17:15.309> area<00:17:15.669> I 00:17:16.579 --> 00:17:16.589 align:start position:0% function it's in the securities area I 00:17:16.589 --> 00:17:18.480 align:start position:0% function it's in the securities area I think<00:17:17.589> you<00:17:17.709> all<00:17:17.829> know<00:17:17.949> what<00:17:18.040> I'm<00:17:18.160> talking 00:17:18.480 --> 00:17:18.490 align:start position:0% think you all know what I'm talking 00:17:18.490 --> 00:17:19.160 align:start position:0% think you all know what I'm talking about 00:17:19.160 --> 00:17:19.170 align:start position:0% about 00:17:19.170 --> 00:17:23.180 align:start position:0% about and<00:17:19.790> this<00:17:20.790> area<00:17:21.030> is<00:17:21.180> interesting<00:17:21.750> if<00:17:21.959> you<00:17:22.350> pre 00:17:23.180 --> 00:17:23.190 align:start position:0% and this area is interesting if you pre 00:17:23.190 --> 00:17:25.760 align:start position:0% and this area is interesting if you pre sell<00:17:23.520> golf<00:17:23.910> course<00:17:24.270> memberships<00:17:25.020> before 00:17:25.760 --> 00:17:25.770 align:start position:0% sell golf course memberships before 00:17:25.770 --> 00:17:29.540 align:start position:0% sell golf course memberships before people<00:17:25.980> can<00:17:26.310> go<00:17:26.490> in<00:17:26.670> golf<00:17:27.800> then<00:17:28.800> it<00:17:29.010> starts<00:17:29.430> to 00:17:29.540 --> 00:17:29.550 align:start position:0% people can go in golf then it starts to 00:17:29.550 --> 00:17:31.580 align:start position:0% people can go in golf then it starts to become<00:17:29.700> more<00:17:30.060> of<00:17:30.150> a<00:17:30.210> speculative<00:17:30.840> investment 00:17:31.580 --> 00:17:31.590 align:start position:0% become more of a speculative investment 00:17:31.590 --> 00:17:33.410 align:start position:0% become more of a speculative investment because<00:17:32.010> people<00:17:32.280> can't<00:17:32.490> realize<00:17:32.820> the<00:17:32.940> utility 00:17:33.410 --> 00:17:33.420 align:start position:0% because people can't realize the utility 00:17:33.420 --> 00:17:35.570 align:start position:0% because people can't realize the utility right<00:17:33.630> away<00:17:33.870> and<00:17:34.170> it<00:17:34.710> creeps<00:17:35.010> up<00:17:35.250> into<00:17:35.490> the 00:17:35.570 --> 00:17:35.580 align:start position:0% right away and it creeps up into the 00:17:35.580 --> 00:17:38.920 align:start position:0% right away and it creeps up into the securities<00:17:36.090> realm<00:17:36.360> so<00:17:37.140> this<00:17:37.530> edge<00:17:37.800> is<00:17:38.280> very 00:17:38.920 --> 00:17:38.930 align:start position:0% securities realm so this edge is very 00:17:38.930 --> 00:17:41.120 align:start position:0% securities realm so this edge is very interesting<00:17:39.930> and<00:17:40.080> very<00:17:40.140> dangerous<00:17:40.530> with 00:17:41.120 --> 00:17:41.130 align:start position:0% interesting and very dangerous with 00:17:41.130 --> 00:17:42.680 align:start position:0% interesting and very dangerous with respect<00:17:41.550> to<00:17:41.640> token<00:17:41.880> projects<00:17:42.420> that<00:17:42.600> are 00:17:42.680 --> 00:17:42.690 align:start position:0% respect to token projects that are 00:17:42.690 --> 00:17:45.080 align:start position:0% respect to token projects that are analogues<00:17:43.170> of<00:17:43.410> these<00:17:43.620> old<00:17:43.860> cases<00:17:44.100> and<00:17:44.550> that's 00:17:45.080 --> 00:17:45.090 align:start position:0% analogues of these old cases and that's 00:17:45.090 --> 00:17:46.550 align:start position:0% analogues of these old cases and that's all<00:17:45.240> I'm<00:17:45.330> gonna<00:17:45.450> say<00:17:45.540> about<00:17:45.780> securities<00:17:46.380> law 00:17:46.550 --> 00:17:46.560 align:start position:0% all I'm gonna say about securities law 00:17:46.560 --> 00:17:48.890 align:start position:0% all I'm gonna say about securities law other<00:17:46.890> than<00:17:47.070> the<00:17:47.280> fact<00:17:47.490> that<00:17:47.640> the<00:17:47.880> SEC<00:17:48.660> has<00:17:48.870> a 00:17:48.890 --> 00:17:48.900 align:start position:0% other than the fact that the SEC has a 00:17:48.900 --> 00:17:50.870 align:start position:0% other than the fact that the SEC has a flexible<00:17:49.350> test<00:17:49.710> so<00:17:50.040> that<00:17:50.070> could<00:17:50.400> be<00:17:50.430> their 00:17:50.870 --> 00:17:50.880 align:start position:0% flexible test so that could be their 00:17:50.880 --> 00:17:52.910 align:start position:0% flexible test so that could be their jurisdiction<00:17:51.540> that<00:17:52.290> could<00:17:52.590> be<00:17:52.710> their 00:17:52.910 --> 00:17:52.920 align:start position:0% jurisdiction that could be their 00:17:52.920 --> 00:17:56.090 align:start position:0% jurisdiction that could be their jurisdiction<00:17:53.930> but<00:17:54.930> coin<00:17:55.170> Center<00:17:55.500> advocates 00:17:56.090 --> 00:17:56.100 align:start position:0% jurisdiction but coin Center advocates 00:17:56.100 --> 00:17:58.760 align:start position:0% jurisdiction but coin Center advocates for<00:17:56.310> this<00:17:56.520> to<00:17:57.000> be<00:17:57.150> their<00:17:57.330> jurisdiction<00:17:58.080> where 00:17:58.760 --> 00:17:58.770 align:start position:0% for this to be their jurisdiction where 00:17:58.770 --> 00:18:02.150 align:start position:0% for this to be their jurisdiction where we<00:17:59.340> really<00:17:59.850> have<00:18:00.090> an<00:18:00.270> issuer<00:18:00.720> that<00:18:01.110> people<00:18:02.040> are 00:18:02.150 --> 00:18:02.160 align:start position:0% we really have an issuer that people are 00:18:02.160 --> 00:18:03.710 align:start position:0% we really have an issuer that people are relying<00:18:02.490> on<00:18:02.700> for<00:18:03.030> the<00:18:03.120> profit<00:18:03.480> of<00:18:03.570> their 00:18:03.710 --> 00:18:03.720 align:start position:0% relying on for the profit of their 00:18:03.720 --> 00:18:07.670 align:start position:0% relying on for the profit of their investment<00:18:04.850> if<00:18:05.850> we<00:18:06.090> can<00:18:06.330> help<00:18:06.570> them<00:18:06.840> get 00:18:07.670 --> 00:18:07.680 align:start position:0% investment if we can help them get 00:18:07.680 --> 00:18:09.440 align:start position:0% investment if we can help them get comfortable<00:18:08.100> with<00:18:08.310> this<00:18:08.580> I<00:18:08.850> think<00:18:09.090> we<00:18:09.420> can 00:18:09.440 --> 00:18:09.450 align:start position:0% comfortable with this I think we can 00:18:09.450 --> 00:18:11.750 align:start position:0% comfortable with this I think we can have<00:18:09.720> a<00:18:09.750> much<00:18:09.960> freer<00:18:10.650> and<00:18:10.950> more<00:18:11.130> open<00:18:11.520> and 00:18:11.750 --> 00:18:11.760 align:start position:0% have a much freer and more open and 00:18:11.760 --> 00:18:15.080 align:start position:0% have a much freer and more open and innovative<00:18:11.940> community<00:18:12.710> but<00:18:13.790> we<00:18:14.790> worry<00:18:15.000> about 00:18:15.080 --> 00:18:15.090 align:start position:0% innovative community but we worry about 00:18:15.090 --> 00:18:17.660 align:start position:0% innovative community but we worry about investor<00:18:15.660> protection<00:18:16.110> so<00:18:16.470> where<00:18:16.890> this<00:18:17.220> line 00:18:17.660 --> 00:18:17.670 align:start position:0% investor protection so where this line 00:18:17.670 --> 00:18:20.690 align:start position:0% investor protection so where this line gets<00:18:17.970> drawn<00:18:18.240> is<00:18:18.510> very<00:18:18.750> important<00:18:19.230> and<00:18:19.700> that's 00:18:20.690 --> 00:18:20.700 align:start position:0% gets drawn is very important and that's 00:18:20.700 --> 00:18:22.220 align:start position:0% gets drawn is very important and that's why<00:18:20.880> coin<00:18:21.150> Center<00:18:21.450> has<00:18:21.600> spent<00:18:21.780> time<00:18:21.990> working 00:18:22.220 --> 00:18:22.230 align:start position:0% why coin Center has spent time working 00:18:22.230 --> 00:18:23.990 align:start position:0% why coin Center has spent time working on<00:18:22.440> frameworks<00:18:22.860> for<00:18:23.010> security<00:18:23.430> regulation 00:18:23.990 --> 00:18:24.000 align:start position:0% on frameworks for security regulation 00:18:24.000 --> 00:18:25.820 align:start position:0% on frameworks for security regulation which<00:18:24.180> I<00:18:24.300> presented<00:18:24.570> last<00:18:24.720> year<00:18:25.020> but<00:18:25.440> also<00:18:25.590> on 00:18:25.820 --> 00:18:25.830 align:start position:0% which I presented last year but also on 00:18:25.830 --> 00:18:27.500 align:start position:0% which I presented last year but also on consumer<00:18:26.220> protection<00:18:26.700> and<00:18:26.850> also<00:18:27.000> on<00:18:27.300> any 00:18:27.500 --> 00:18:27.510 align:start position:0% consumer protection and also on any 00:18:27.510 --> 00:18:29.540 align:start position:0% consumer protection and also on any money<00:18:27.720> laundering<00:18:28.080> and<00:18:28.230> we<00:18:28.800> appreciate<00:18:29.520> all 00:18:29.540 --> 00:18:29.550 align:start position:0% money laundering and we appreciate all 00:18:29.550 --> 00:18:31.280 align:start position:0% money laundering and we appreciate all the<00:18:29.880> support<00:18:30.270> we<00:18:30.330> get<00:18:30.570> from<00:18:30.630> your<00:18:30.900> wonderful 00:18:31.280 --> 00:18:31.290 align:start position:0% the support we get from your wonderful 00:18:31.290 --> 00:18:33.470 align:start position:0% the support we get from your wonderful community<00:18:31.680> we'll<00:18:32.040> be<00:18:32.160> here<00:18:32.430> all<00:18:32.790> week 00:18:33.470 --> 00:18:33.480 align:start position:0% community we'll be here all week 00:18:33.480 --> 00:18:34.940 align:start position:0% community we'll be here all week so<00:18:33.630> please<00:18:33.870> come<00:18:34.050> and<00:18:34.080> see<00:18:34.260> us<00:18:34.290> and<00:18:34.680> please 00:18:34.940 --> 00:18:34.950 align:start position:0% so please come and see us and please 00:18:34.950 --> 00:18:36.650 align:start position:0% so please come and see us and please consider<00:18:35.190> supporting<00:18:35.580> coin<00:18:36.210> Center<00:18:36.480> and 00:18:36.650 --> 00:18:36.660 align:start position:0% consider supporting coin Center and 00:18:36.660 --> 00:18:38.240 align:start position:0% consider supporting coin Center and thanks<00:18:37.110> again<00:18:37.230> to<00:18:37.350> the<00:18:37.380> theory<00:18:37.650> founders<00:18:38.010> for 00:18:38.240 --> 00:18:38.250 align:start position:0% thanks again to the theory founders for 00:18:38.250 --> 00:18:39.590 align:start position:0% thanks again to the theory founders for having<00:18:38.460> us 00:18:39.590 --> 00:18:39.600 align:start position:0% having us 00:18:39.600 --> 00:18:40.610 align:start position:0% having us [Applause] 00:18:40.610 --> 00:18:40.620 align:start position:0% [Applause] 00:18:40.620 --> 00:18:44.310 align:start position:0% [Applause] [Music]