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Join me today for Episode 1063 of Bitcoin And . . . 
Topics for today:

• Ghibli-fy Memes Run Amok
• Gamestop to Issue 0% Convertible Notes For BTC
• French Company Buys 580 BTC
• Wyoming Issues Stablecoin
• Yield Bearing Stablecoins on Rise

#Bitcoin #BitcoinAnd
 
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Articles:
https://www.coindesk.com/markets/2025/03/27/studio-ghilbi-memecoins-raffle-on-ethereum-solana-as-openai-s-4o-unleashes-new-trend
https://bitcoinmagazine.com/bitcoin-for-corporations/gamestops-bitcoin-move-looks-bold-but-it-might-be-brilliant
https://bitcoinmagazine.com/news/gamestop-announces-1-3-billion-fundraising-plan-to-purchase-bitcoin
https://decrypt.co/311877/french-blockchain-group-bitcoin-holdings-54-million

• https://www.cnbc.com/futures-and-commodities/
• https://dashboard.clarkmoody.com/
• https://mempool.space/
• https://value4value.info/
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• https://geyser.fund/project/thebitcoinandpodcast

https://www.therage.co/tornado-cash-treasury-attempts-to-block-sanctions-judgement/
https://www.theblock.co/post/348449/jpmorgan-yield-bearing-stablecoins-growth
https://atlas21.com/wyoming-first-stablecoin-issued-by-a-u-s-state-announced/
https://cointelegraph.com/news/south-korea-officials-hold-24k-crypto-ethics-commission
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[00:00:02] David Bennett:

It is 08:40AM   Pacific Daylight Time. It is the March   2025.   This is episode ten sixty three of Bitcoin, and we're gonna start with something fun.   Maybe you guys noticed something strange going on on the interwebs yesterday. Lots of   anime looking stuff going on. Well, it turns out we actually understand   what happened.   So, this is from Sharra Malwa, CoinDesk dot com. Studio Ghibli craze   inspires meme coins   on a whole bunch of shit chains.   I'm not even gonna say the names, but   if you were wondering why you saw some stuff going on with, like, Studio Ghibli type anime,   this is what happened.  

OpenAI   released a new   four o model.   Apparently, that's what all this was about. So in a bizarre twist of AI tech   and nostalgia is seeing meme coin enthusiasts issue pump and dump, clearly, tokens themed after   Studio Ghibli movies as a new AI art trend   that went viral   in the past twenty four hours.   Just   think about that sentence for a second.   We were we we we're almost seeing the death of meme coins.   Almost all activity with ordinals and inscriptions on the Bitcoin blockchain   just stopped. I mean, we we went from, like, having, like, you know, 98 blocks   full, you know, full men pools all the way all over the place down to, like, you know, today, I think we're at, like, twenty twenty two or something like that. It's been that way for weeks.  

Inscriptions   screech to a halt.   You know, Bored Ape Monkeys, I gave you this a couple of stories the other day, Bored Ape or bored yacht ape club or bored ape. Yeah. Yeah. Bored ape yacht club. Just a standstill.   And then all of a sudden,   it's something something   completely unrelated.   ChatGPT   or OpenAI   or whatever released this   new four o model.   And it was all it did, honestly, was just allow you to make pictures inside of the four o model instead of having to go somewhere else. You go to a different model.   And what did we do?  

We pump and dump   meme coins.   Do not think this crap is over. It's   the poor will always be with you as Jesus said.   This is coming after OpenAI's   newly released four o model,   its most powerful image generation tool   that spits out artwork based on specific user instructions and style guidelines,   mimicking   the characteristic   vibe and style of artists and animators.   Thursday's internet craze is specific to AI generated images styled after the whimsical hand drawn charm of studio Ghibli films, with fans flooding the web with selfies and landscapes   with an eerie precision of the studio's   my neighbor Totoro   and Spirited Away films.  

Pausing just to say that Spirited Away is one of my favorite films of all time. I'm just just gonna put that out there. The hashtag   Ghibli AI   has since racked up millions of hits on x and Instagram,   and crypto traders are now turning the trend into digital gold.   No. It's not digital gold. It's garbage. Stay away from it. A flurry of Ghibli themed cryptocurrencies   are doing the rounds on Ethereum and Solana blockchains with Ghiblification   or Ghibli, g h I b l I, emerging   as the biggest one yet with a $21,000,000   market cap as of Asian morning hours.  

Inspired meme coins often go viral and tend to rack up bets because they tap into   Internet culture's love for humor, absurdity, and community.   Their low entry cost and wild price swings draw speculators   chasing quick gains,   amplifying   buzz.   It has now racked up nearly $70,000,000   in trading volumes in just twenty four hours of going live from a little over 250,000   individual trades.   The token's liquidity pool has just over $333,000   worth of Solana's   SOL,   meaning the max a Ghibli holder can exchange their holdings for   minus price declines.  

Smaller tokens such as Ghibli Doge and Studio Ghibli inspired doge or a Studio Ghibli inspired doge and popular movie character No Face and Utaro have inspired their own tokens. However, these have not gained as much traction.   It's   I don't even know what to say about this. Because yesterday everybody was like going, what the hell is going on with all this Ghibli stuff? Hell, even I was asking that question until I finally figured it out and I'm like, oh, let's go over to chat g p t. I'll pick the four point o model.   And I did a Ghibli character of   my own, which was inspired by one of the people on Noster,   get basically saying we need to Ghiblify this, and he gave me the image of that dude from the office going no.  

So I giblefied it, and it worked. It worked actually, it worked pretty damn well. But   the fact that we took it from   going viral   into the into an immediate   market cycle of mean coins is disturbing.   It's disturbing.   I mean, you got people that are, you know, like financing   burritos on on four payments   from DoorDash.   And now you've got a situation where every Internet meme   has come closer and closer to the immediate   manufacturer of meme coins   that just blow everybody out.   It's it's sad and I really wish it would stop. And speaking of stop, let's go back   to GameStop. They've got even more news going on after their announcement yesterday.  

This is Nick Ward from Bitcoin Magazine.   Gamestop's bitcoin move looks bold, but it might be brilliant.   This week,   Gamestop quietly updated its investment policy to include bitcoin as a treasury reserve asset with approximately $4,780,000,000   in cash and that's nearly 37%   of its $12,900,000,000   market cap,   this move marks more than just a diversification   of reserves.   Alright.   I need to pause.   People have been giving GameStop shit, and I've talked about this a little bit yesterday. I just wanna talk about it a little bit more given that little piece of information.   37%   of its almost $13,000,000,000   market cap is in cash or cash equivalents.  

Those things that are easily liquefiable   into cash.   That's huge.   That is a lot of your market capitalization in cold,   hard cash.   And I'm kind of really starting to become interested   in which way GameStop decides to go because they have all the ammunition they need   to do whatever the hell they wanna do, and people are still just giving them shit.   We'll we'll watch.   I will definitely be watching anyway. It's a signal that corporate treasury strategies are evolving.   That excess   cash on the balance sheet can and perhaps should be more than idle   and that new asset classes   are gaining legitimacy in the boardroom   and not just on message boards. Gamestop's move may not be typical, but it is highly strategic   and increasingly relevant for chief financial officers evaluating how to preserve capital and unlock value in a shifting macro landscape.  

For companies with material cash holdings, the erosion of purchasing power is no longer theoretical, it's measurable.   Over the past decade, the United States dollar has declined in real terms   by more than 25%,   driven by inflation,   expansionary monetary policy,   and global fiscal uncertainties.   Bitcoin presents a compelling counterweight to that degradation, particularly for balance sheets with the flexibility to tolerate mark to market volatility   in pursuit of long term strategic payoffs.   Consider Bitcoin's defining characteristics,   the fixed supply,   global liquidity,   resilience to monetary interventions,   and long term outperformance.  

With a six year compound annual growth rate or CAGR of 72.7%,   Bitcoin has dramatically outpaced equities,   bonds,   and real estate over the exact same period.   It should have mentioned most commodities like gold.   It definitely has outpaced gold.   For CFOs thinking in three to five or ten year increments,   The case for allocating even a small portion of excess cash to Bitcoin is no longer fringe,   it's prudent exploration.   Until recently, many finance teams ruled out Bitcoin simply due to unfavorable accounting treatment.   Under legacy   GAAP   standards, Bitcoin had to be impaired when its price dropped, but could not be revalued when it recovered, an asymmetric model that distorted true economic value and discouraged adoption. But in late twenty twenty four, that barrier was removed.  

The Financial Accounting Standards Board, the FASB,   approved new rules that now allow companies to measure bitcoin at fair market value. And beginning in 2025,   companies can reflect both unrealized gains and losses in their earnings,   report bitcoin more transparently in their financial statements,   and align accounting treatment with actual asset performance.   This change addresses one of the most common objections from CFOs and audit committees alike. It brings Bitcoin into compliance with modern reporting standards making it viable not just for speculation but for responsible treasury management.   So why is GameStop a natural fit?  

Every company has a unique capital structure,   investment base, and operational profile.   GameStop's decision to allocate to Bitcoin wasn't just bold, it was structurally   appropriate.   High liquidity.   It has $4,780,000,000   in cash and cash equivalents.   That means GameStop's balance sheet provides room for allocation without compromising near term operations.   It has a resilient investor base. GameStop shareholders have already demonstrated long term conviction and a willingness to support unorthodox but calculated strategies.   Cultural alignment.  

As a company that challenged Wall Street norms in 2021,   GameStop's   embrace of a decentralized   digital reserve asset aligns   with its identity   as a financial outlier.   This doesn't mean Bitcoin is a fit for every public company.   But for those with excess reserves and a forward looking treasury mindset, it does deserve serious   consideration.   GameStop's   move is part of a broader rethinking   of the traditional treasury reserve model. For decades, companies stored value in cash,   short term bonds, and dollar denominated equivalents. But in today's environment,   those instruments may preserve nominal value while degrading purchasing power.  

Bitcoin introduces an alternative,   and the macro backdrop is increasingly supportive.   There is ongoing inflation.   Despite cooling from its peak, inflation remains persistently above central bank targets, which is 2%,   steadily eroding the real value of corporate cash holdings.   We have   elevated debt levels.   Sovereign debt across developed nations continues to climb,   increasing the likelihood   of future currency devaluation   and suppression of real yields.   We have ETF or Exchange Traded Fund driven validations.   The approval of spot Bitcoin ETFs introduced new channels for institutional   participation.  

There's a shift in investor expectations.   As digital,   native generations begin to shape capital markets,   shareholder interest in Bitcoin and hard assets is rising, especially among retail and growth oriented investors.   These tailwinds   create space for chief financial officers to begin allocating conservatively   without needing to commit to a radical overhaul of reserve strategy.   GameStop's move didn't come with a flashy press conference or social media fanfare.   It came through a formal policy update   exactly how strategic treasury decisions are typically made.   The signal it sends is simple but important, quote, we believe excess capital should be protected and positioned for asymmetric upside, end quote.  

Bitcoin is not a cure all, but it is now for the first time auditable,   liquid,   and institutionally   viable. And for CFOs with flexibility and foresight, exploring Bitcoin is no longer about being first, it's about preparing for what's next.   Alright. So continuing on   with this theme of GameStop,   they have made an announcement.   And it wasn't just that they're   allowing Bitcoin to be put on their balance sheet. They have taken a page directly from   without old with with almost no alteration whatsoever.   And, honestly, I don't think there is any alteration whatsoever   right out of Michael Saylor's playbook. They're gonna do the exact same thing because Nick from Bitcoin Magazine says,   Gamestop   announces a $1,300,000,000   fundraising plan   to purchase Bitcoin.  

What do you want to bet those are securities? Let's find out. Gamestop announced today that it intends to raise $1,300,000,000   through a private offering of oh, convertible senior notes and will use the proceeds from this offering for general corporate purposes including the acquisition of bitcoin.   The move comes one day after the company revealed an update to its investment policy allowing Bitcoin to be used as a treasury reserve   asset.   The offering consists of $1,300,000,000   of aggregate principal amount of 0%   convertible senior notes due in 2030.  

So no yield, no coupon attached to this.   Additionally,   the company plans to grant initial purchasers   an option to buy up to $200,000,000   more in notes with a 13   accrete in value. They will mature on April 2030 unless converted, redeemed,   or repurchased earlier.   Upon conversion, GameStop will have the option to settle in cash   or shares of its class a common stock or a combination of both.   The initial conversion rate and other terms will be determined at the time of pricing.   The company stated that it expects to use The US Composite volume weighted average price of its stock from 1PM to 4PM eastern daylight time on the pricing date as the reference for the initial conversion price.   GameStop emphasized that neither the notes nor the shares of common stock issuable upon conversion   have been or will be registered under the Securities Act of 1933   or any state securities laws, And as a result, they may not be offered nor sold in The United States without registration   or an applicable exemption.  

The company also states that there are no assurances that the offering will be completed   as described   or at all.   It's like this is almost like a freaking Justin Sun announcement of an announcement. This is a little ridiculous, but this marks a significant financial decision by GameStop as it pivots toward integrating Bitcoin into its corporate strategy.   Of course, the strategy was pry pioneered by strategy's   Michael Saylor, who met with GameStop CEO Ryan Cohen in person last month and has definitely appeared to have had an influence   on the GameStop's   decision to embrace BTC as a reserve asset. Yeah. Well, clearly   but   that language that's the company also stated that there are no assurances that the offering will be completed as described   or at all.  

Okay. So I   so this could be a thing?   Def I mean, this at this point, it's not definitely not a thing.   It's also definitely not not a thing. It's it I don't know what this is.   I have no at this point, I have no idea what the hell GameStop's doing.   I I mean, it I can only assume that that is a, like, supreme   cover your ass statement,   but, honestly,   man,   either either shit or get off the pot.   If you're gonna release a statement that you're going to, you know,   generate $1,300,000,000   of senior notes at 0%   interest rate, and then you give all the conversion data and the conversion dates, and then you go on to say, well, we may or we may not do it. That's a little shady, man. That's that's just a little shady. But you know who's not shady?   Maple   Trade. Maple Syrup and his sister Sarah Soaps on the Circle P. Circle P is open for business. It is where I bring plebs like you   with goods and services for sale to plebs like you. If you're not selling in a Bitcoin, you're not in the circle   p. His maple syrup is fantastic.  

He he sent me some,   and it's glory in a bottle. Right? So a quart for $27,   you can get two of them for 47.   1 half gallon is 45,   a full gallon is 80, but they'll come in two half gallon pot,   things. Right? Not you won't ship you just like a whole gallon. It'll have to be two one half gallon jugs, but it's $80.   Or you can get,   six pints for 75.   And like I said, this this maple syrup, I've tried it myself. I know what I'm talking about. It's the best maple syrup that I've ever had, and and that's saying a lot because I like maple syrup.   He hand makes this. This is   artisanal.  

True artisanal   pleb made   maple syrup. He taps all of his own trees.   He trucks all of the the sap over to the boilers. He boils all the water off. He checks the sugar content, and then he packages it by hand   and mails it to you and clearly   takes   Bitcoin as payment. Because if you're not taking Bitcoin as payment, you're not in circle p.   If you order from Mapletrade,   make certain that you tell him you heard about it here on the circle p. And that way, he can make a determination whether or not he thinks that the sale I made for him today is worth sending me Satoshis, which he always does.   It's this is a value for value advertising model. He does not pay me upfront for telling you about his stuff. In fact, he never even asked to be advertised for. I decided I like this stuff so much that I wanted to tell other people about it. And if I make a sale, he gets to pay me what he thinks that sale is worth. That's value for value. That's the value for value advertising model. You will only find that here on the Bitcoin and podcast.  

All of his prices   plus his nostril handle and his Twitter account   will be URLs   in the show notes. So just click on it and say, I wanna order your stuff.   I want to order your stuff. I don't think he has   a,   I don't think he has a storefront.   So you gotta get a hold of him the old fashioned way. So when you do, make absolutely certain you tell him that you heard about it here on the circle p. Now over to France where French Blockchain Group's Bitcoin holdings have risen   to $54,000,000   US. This is Vismaya   v writing for Decrypt.co.   French based tech firm, The Blockchain Group,   has strengthened its position among global Bitcoin holders   with the purchase of 580   BTC   valued at 50 and a half million   dollars.  

The acquisition brings the company's total Bitcoin holdings to $6.20   BTC,   aligning with its long term strategy of accumulating   and perpetually holding Bitcoin as a reserve asset.   Listed on Euronext Paris, the blockchain group has continued its Bitcoin accumulation   strategy that began in November of twenty twenty four,   acquiring Bitcoin to optimize its cash reserves.   The latest purchase,   made through its 100%   subsidiary, the blockchain group Luxembourg   SA,   was financed using proceeds   from, guess what,   a convertible   bond issuance announced back in early March.  

The company's accumulation strategy is driven by Bitcoin's unique attributes, unparalleled   scarcity, security, and decentralization.   At the time of the announcement, the Bitcoin price was 87,311,   bringing the total value of the group's holdings to roughly $54,000,000   The company's initial buys coincided with pivotal events like the US presidential election   and bitcoin's rise towards $100,000   giving the company a strong entry into the market.   The blockchain group trading under the ALTBG   ticker   saw its stock rise from 16 pennies per share on November 5 to 51¢   on Wednesday as per Google Finance data, marking a 220%   increase   since it began accumulating Bitcoin.  

To track the performance of its Bitcoin treasury strategy,   the blockchain group has introduced key performance indicators, including BTC yield,   BTC   gain,   and BTC   euro gain.   Such metrics measure the percentage change in the ratio of total Bitcoin holdings to shares outstanding, offering the transparency   into the growth of the company's   Bitcoin assets. And as of the latest report,   the company   has achieved a BTC yield of 709.8%   year to date,   pointing to the success of its bitcoin acquisition strategy.   The French firm's latest acquisition places it among the top 30 corporate bitcoin holders globally,   a list dominated of course by Michael Saylor's strategy.  

The blockchain group's action is in step with a broader trend of companies embracing BTC as part of their financial strategies.   And, of course, they're gonna talk about GameStop,   recently announced plans to raise 1,300,000,000.0   to purchase BTC, blah blah blah. We already used we'd do all that. And then, of course, they talk about Japanese investment firm, Meta Planet,   also being in that group. So there you go.   Let's run the numbers.   Futures and commodities   trending now on CNBC.com.   Bill Gates says that within ten years,   artificial intelligence will replace many doctors and teachers, and humans won't be needed for most things   unless you need to be taught something   or you get sick and need a doctor.  

I I I see,   when when Bill Gates opens his mouth and says shit like that, I honestly should just stop listening. I I mean, I just saw it. I couldn't just not bring it to you, but I will be bringing you what we should be bringing you, and that is the price of West Texas Intermediate Oil, which is down   just a hair 0.7%.   Wait. No. 0.07%.   Sixty nine dollars and fifty nine cents, essentially where it was yesterday,   as is Brent Norsey, which is down almost a fifth of a point to $73.66.   Natural gas, however, is down a full half point, and gasoline is down a fifth of a point to $2.22   a gallon.  

Most of the shiny metal rocks are doing well today. We've got another all time high for gold after a one and a third percentage point increase, $3,064.   Silver is up 2.65%.   Platinum is up 1.7%,   and palladium is up one. Copper is the only thing in the red down over two points.   Most of ag is in the red today. It looks like the biggest winner is gonna be soybeans, up 1.4%.   And the biggest loser is coffee. Three   and change to the downside.   Live cattle is up point 14%,   lean hogs down 1.17,   and feeder cattle down   just under a half.  

$87,140   is what it'll cost you to get your 1 Bitcoin That is a $1,730,000,000,000   market cap. And after you get that 1 Bitcoin, you could spend it on 28.5   ounces of shiny metal rocks. There are 19,842,572.81   Bitcoin   in the supply, and fees are low again today. They reduced from yesterday at, 0.04.   BTC is what it stands at now.   There are oh, god. It looks like about 24 blocks carrying 10,000 unconfirmed transactions waiting to clear at high priority rates of 4 Satoshis per v byte. Low priority is gonna get you in at three.   And hash rate is still high, 846.4   exahashes per second.  

Still not seeing any kind of minor capitulation   at this time.   From yesterday's   episode of Bitcoin and named GameStop,   I've got anonymous with 5,000 sat says, love this episode.   You know, I'm far from The US.   Never even been there. Still important message.   Politics resonates. I listen daily. My morning is not the same time, but good morning.   Love   you. X p l b z x. Yeah. Love you too, brother. Thank you for the satoshis. And with another 1,500,   somebody, and I don't know who, says boost.   Psyduck with 571   says,   Psyduck. Yodle. Yodle.  

Four hundred and forty four says, hello fellow listeners. Perma nerd with 333   says, like she she 21 m, Comfrey is a   oh, I blew it. I blew it. Like Sheeshi 21 m, comfrey is to a tree guild.   This podcast is a nutrient accumulator for your brain. Dude, thank you. I love Perma Nerd. Pies with a hundred. Thank you, sir. No. Thank you. That's the weather report.   Welcome to part two of the news you can use   tornado cash.   In the news from Lola Leitz, she's writing on her rag named the rage, the rage   dot co. That is the rage.co.   Treasury attempts to block   sanctions judgment.  

This is getting really confusing.   So   I'm not sure what treasury is doing at this point.   Let's see if Lololites   can take us through the confusion   that the treasury department is sowing in the markets.   Last week, the treasury department removed   tornado cash from the   OFAC   specially designated nationals and blocked persons list,   reversing US sanctions on that software.   Now the Treasury Department is attempting to stop the courts from granting   a so called motion for partial summary judgment,   which would ensure that the Treasury cannot   relist   Tornado Cash or any software like Tornado Cash on OFAC's   SDN list. That's that specially designated nationals list.  

So   Tornado Cash's removal   from the SDN list came after the fifth circuit classified   a Texas district court's decision   to designate the Ethereum software as a sanctioned entity as unlawful last November,   clarifying   that, the software like Tornado Cash is not covered under the current   design of the International   Emergency   Economic   Powers Act or the IEEPA.   As the fifth circuit found,   quote, the foremost task of legal interpretation is divining what the law is, not what the judge interpreter wishes it to be.   IEEPA   grants the president broad powers to regulate a variety of economic transactions,   but its language is not limitless, end quote.  

Effectively,   the fifth circuit court declined or rather, the fifth circuit declined to interpret IEEPA   to include software like Tornado Cash, which, as the court notes, was established in 1977,   quote, years before the modern Internet was even invented,   end quote. If Congress deemed it fit to amend   IEEPA   to include software like Tornado Cash under its authority, it may choose to do so, the court effectively argued.   And Treasury overstepped its authority by listing Tornado Cash on OFAC's SDN list.   In conclusion, the fifth circuit directed   the Texas District Court in which a group of people originally sued against Treasury's   sanctions on tornado cash to grant a previously filed motion for partial summary judgment, a request   for pretrial ruling warranted   when, quote, there is no genuine dispute   as to any material fact,   in which the plaintiffs clearly laid out that software like Tornado Cash falls out of scope of IEEPA.  

The Texas District Court,   which has not yet acted on the fifth circuit's ruling, may now choose to do one of two things.   It may find that sanctions on tornado cash do not apply to the plaintiffs,   which wouldn't make much sense as anyone wanting to use tornado cash would then have to sue independently or   or grant so called national   vacatur,   or reversing   the sanctions entirely.   After Treasury reversed the sanctions on Tornado Cash, the agency on Friday   filed a notice with the Texas District Court declaring that it is not necessary anymore for the Texas court to grant plaintiff's   motion for partial summary judgment   because it had removed Tornado Cash from OFAC's sanction list.  

But unless the Texas District Court issues a ruling,   no binding court order exists that would stop the Treasury from sanctioning other software like Tornado Cash or from relisting Tornado Cash on OFAC's SDN list at a later point in time,   thereby reversing their reversal is what what's being written here.   It is the ability of the treasury   or wait, it is this ability the treasury appears to be attempting to retain   with its Friday motion trying to stop the issuance of a binding court order.   It makes clear the treasury wants to and likely will continue to go after privacy services like Tornado Cash.   The plaintiffs describe Treasury's response to the fifth circuit's order as a study in chaos.  

First, the department set a deadline for February   to respond to the Fifth Circuit's decision.   Then, it requested a two month extension.   Then, it asked the court to grant remedy merely to the plaintiffs without vacatur   only to three days later remove tornado cash from the SDN list entirely.   Enough is enough, the plaintiffs argue.   It is time for this court to do what the fifth circuit ordered months ago.   Plaintiff's motion for partial summary judgment on count one must be granted, and defendant's designation must be held unlawful and set aside.   Treasury overstepped its authority and, quote, the losing party   obviously cannot escape that judgment by suspending its challenged conduct   before judgment is entered, end quote.  

If that were the case,   the plaintiffs argue no case would ever be litigated through judgment calling the Treasury's actions   absurd.   Paired with the agency's stark warning for users of software like Tornado Cash last week and   its reiteration that fighting illicit actors in the cryptocurrency space is a top priority,   the treasury's war on privacy seems to be far from   over.   Right? Now for any of you guys that kinda like were blinking all the way through that, I've made some notes as to what all this kinda means.   So, one,   the treasury   overstepped   the International   Emergency   Economic Powers Act by sanctioning tornado cash in the first place.  

The law doesn't explicitly target things like tornado cash. Right? So the IE EPA that they're   that they're barking about   doesn't even affect tornado cash the way it's written.   Second,   treasury resist the court order   to finalize the ruling   avoiding precedent blocking future software sanctions,   which means that they what they wanna do is they want to they're saying, Tornado Cash is good for now, but it's not without prejudice.   Right? If it was with prejudice, they would never be able to sanction Tornado Cash again. They don't want that. They want to be able to sanction Tornado Cash in the future   and hold their ability to do so with other things.  

Right? So them taking Tornado Cash off that SDN list,   that's what they're talking about when they're saying they're sowing chaos.   Because they're like, oh, it's it's fine for now.   Nobody nobody wants to have to deal with ambiguity.   And this is what this is. The Treasury Department has just become   this ambiguous,   nebulous   thing that is a cloud hanging over everybody's future.   And we thought we were gonna get some clarity on this, but as far as this shit looks, there is no clarity on treasury   at all.   There's no binding order to leave room for treasury to resanction   TornadoCash   or similar tools. Like I said, they they can just resanction it. Treasury's erratic actions   suggest the evasion   of accountability.  

Like, they somehow or another that they're gonna be fined or something like that because they went outside the law of the IE EPA and sanctioned tornado cash even though that law has absolutely nothing to do with things like tornado cash.   I I   no wonder all these people are pissed,   especially the the the guys for the lawyers for tornado cash. They're not happy.   And I'm not happy because this is happening in Texas. This is happening in the fifth circuit court of appeals.   These guys need to go free. They need to go free now, and treasury needs to be told   you have to act we're going to quash your request for all this shit IEEPA   with prejudice.  

Sorry for you. You'd never gonna be able to do this shit again. So the court   is stressing that only Congress   can expand the IEEPA   to cover software,   And treasury is pushing for legislative changes, but they themselves cannot change it, and they've kind of done that. They've kind of interpreted it all on their own. So treasury,   at this point, is sort of like a rabid dog.   Now the plaintiffs   have demanded nationwide   vacatur   to prevent piecemeal reimposition of sanctions,   and treasury's public warning on crypto privacy clash with the court's legal limits,   and the plaintiffs are arguing that treasury cannot bypass court judgment   via unilateral   delisting.  

Yeah. They they they somehow or another, treasury seems to have delisted Tornado Cash as some kind of procedural maneuver   to allow them to extend what it is that they're doing to these poor guys over at Tornado Cash, and it needs to stop.   It just needs to stop right now.   Moving on to JPMorgan.   Oh, okay. Okay. Hold on. I I gotta take a deep breath for this one because we're gonna get into stable coin.   I told you I was right yesterday.   I'm gonna tell you that I'm even more right today.   Check this shit out. Except this gets worse.   Now we've got yield.  

Remember to always ask the question when you hear the word yield,   where does it come from?   JPMorgan seal sees yield bearing stablecoins   growing from 6% to 50%   of market share.   Yeah. Yield bearing stablecoins including tokenized treasuries,   which offer interest returns similar to traditional financial products, could experience   massive growth ahead, according to JP Morgan analysts.   Yield bearing stablecoins   currently make up just 6% of the total stablecoin market cap, but could expand significantly,   potentially capturing up to 50% of the market unless regulatory changes intervene.   JPMorgan   analysts,   led by managing director, Nikhaylo,   there I cannot pronounce this name, not even gonna try because it's Greek and I'm not good with Greek,   wrote in a report released on Wednesday.  

So the top five yield bearing stablecoins   are Athena's   USDE,   Skydollars   USDS,   BlackRock's   Billville,   Usual Protocol's   USDO,   and Ondo Finances USDY.   All have seen rapid growth since the since the United States' election in November, rising from around 4,000,000,000 to over 13,000,000,000   in combined market capitalization.   According to analysts,   this growth is expected to continue.   They added that the US Securities and Exchange Commission's recent approval of Figure Markets' application for a yield bearing stablecoin,   ticker of which is YLDS   or Yields,   which is registered as a security,   provides further momentum   for this segment.  

Traditional stablecoins such as Tether's USDC and Circle's USD or USDT and Circle's USDC do not   share reserve yields with their users because doing so would classify these assets as securities   according to the analysts.   Such a classification   would also impose additional compliance   requirements   hindering their current seamless use as collateral within the crypto ecosystem, they said.   The JPMorgan   analyst identified   several factors driving the rapid growth of yield bearing stablecoins.   First,   the investors prefer these assets because they offer interest   without requiring holders to engage in risky trading or lending activities or give up custody of their assets.  

Secondly,   major crypto trading platforms such as Derabit   and FalconX   now accept tokenized treasuries   as collateral,   enabling traders to earn yield   on the collateral that they're posting.   It's it's amazing.   It's it's like the eighth wonder of the world, isn't it? Additionally,   crypto investors are increasingly   turning to tokenized treasuries and decentralized finance to obtain higher yields as typical DeFi yields have significantly decreased from their peak levels of 2022,   projects like FRAX Finance are also adopting tokenized treasuries as underlying assets,   further fueling this growth.  

Despite the positive outlook, the JPMorgan   analyst noted barriers.   Yield bearing stablecoins are classified   as securities,   subjecting them to regulatory restrictions that limit their adoption, especially   among plebs like you,   also known as retail investors.   Moreover,   traditionally non yield bearing stablecoins   continue to hold a notable liquidity   advantage.   With a combined market cap of around $220,000,000,000   across multiple blockchains   and centralized exchanges traditional stablecoins   offer efficient,   fast, and low cost transactions   even at large volumes.  

In contrast,   yield bearing stablecoins are newer, smaller, and comparatively less liquid. However,   this liquidity   disadvantage   could potentially be lessened over time as yield bearing stablecoins gain further traction   in the future in crypto derivative trading   as a source of collateral   in DAO or DAO, also known as decentralized   autonomous organization   treasuries,   liquidity pools, and idle cash with crypto venture funds as a result.   Over time, yield bearing stablecoins   could attract much of the idle cash   currently sitting in traditional stablecoins, the analyst said.   While the exact amount of this idle cash is difficult to estimate, it is unlikely to represent the majority of the stablecoin market according   to the analysts.  

Houston, we have a problem.   Specifically,   USDT   or the guys over at Tether   have a problem.   This is a new   type of stablecoin,   a yield bearing stablecoin. And, yeah, they've been around, but there's not a whole lot of traction for them. That's going to change   because the market   now that j and the market as represented by finance bros, you know, wearing ties and and buying $7 coffees or $8 coffees at   Starbucks. Now that they're in the game, they're going to demand yield   because they can, because the the   financial instrumentation   exists.  

And they're going to choose   yield bearing stablecoins   versus   just regular old fashioned vanilla stablecoin like Tether.   This I just don't see this as ending very well. It's but but it's also not going to end   poorly   fast.   It's going to be a long time.   Remember what I've been saying about good old fashioned vanilla flavored stablecoin is that it's going to be used as a way to export   an an enormous amount of United States debt to the rest of the world.   We're going to take our debt, and we're going to just we're I mean, we've already been doing it through The US through the issuance of the US dollar and treasury bonds, but now we've just got a different way to do it. And it's gonna be more efficient. It's gonna be more effective because it's all digital. I mean, this might as well be a CBDC for all that matters.   Anyway, they're just going to print treasury bonds and bills.  

Tether's gonna buy them   however they get their however they get their cash.   So and all these other stablecoin   manufacturers are gonna buy buy the bills and the bonds, And The United States is gonna take the money that they get on those auctions, and they're gonna do whatever it is they do, bomb brown people,   I don't I don't know, may you know, yell at white cisgendered men some more. I you know, whatever it is that they think is so important. That's what they're gonna do with that money.   Meanwhile,   those stablecoins are going to be rocketed across the globe, and they're going to cause widespread destruction   because we're exporting our debt.  

We're just going to be cleaning everybody's clocks. But now   no. No. Now we've got yield bearing stablecoins that are coming onto the market. So here's my prediction.   In the next few weeks, you will see USDC   Circle,   Jeremy Allaire's company,   probably be first out of the gate   to issue a yield bearing stablecoin of their own. They will probably beat Tether   because Tether   has more of a Bitcoin ethic.   And this may be the thing.   This may be these may be the suite of products that sucks the wind out of Tether's sails.   What will that do, you're asking? I don't know.  

All I know is that I have a I've got a sneaky suspicion that when you print   bonds   to sell at auction   and stablecoin   companies   buy them and issue yield bearing stablecoins   and export our debt across the globe at 6% interest, I still have to answer ask the question, where does the yield   come from?   I'm I'm just I'm just saying.   Where does the yield come from?   United States is never gonna be able to pay back its debt as it is, and we're just gonna issue more?   Where does the yield   come from?   And   as if JPMorgan's   report   wasn't alone,   we have the state of Wyoming.  

Yes. That's right.   The very first state issued   stablecoin   has been announced   by Wyoming. This is Atlas21.com.   According to Bloomberg on March,   Wyoming began testing its state backed stablecoin,   the Wyoming   stable token.   Ticker symbol is   w y s t. It's fully backed by cash and, you guessed it, US Treasury bonds.   represents the first attempt by a United States public entity to issue a state backed stablecoin.   The announcement was made during the DC blockchain summit where Wyoming governor Mark Gordon and stable token commissioner director Anthony Apollo   discussed the project. And currently, the stablecoin is available on seven, count them, seven blockchain testnets,   Ethereum, Solana, Avalanche,   Arbitrum,   Optimism, Polygon, and Base, leveraging layer zeros interoperability   infrastructure.  

WIST reserves will be held in public accounts   of the state of Wyoming with a legal requirement   to maintain at least 102%   in backing. That sounds like Caitlin   Long got in there with some of her language. The stablecoin is designed to generate new revenue for the state with Wyoming planning to reinvest interest earned from revenues into education and infrastructure,   particularly through the Wyoming School Foundation Fund.   Governor Gordon stated quote,   Our forward thinking approach to blockchain and digital asset legislation   has positioned Wyoming as a model for not only other states but the federal government as well.  

To ensure cross chain functionality,   the state selected layer zero labs as its technology partner. The stablecoin is built on the Omni Chain Fungible Token standard,   allowing for native cross chain transfers.   During initial tests,   A transaction was successfully executed between Ethereum and Avalanche   using something called Stargate, a bridge solution powered by Layer Zero.   Simon Baxes,   VP of Business Development at Layer Zero commented, quote,   there is no clearer signal of where finance is headed than a state government bringing the dollar on chain.   Following the testing phase,   the public launch of WIST is scheduled for July of this year.  

The Stable Token Commission is currently working on integrating reserve management features and regulatory compliance protocols.   Wyoming residents   and registered businesses will be able to participate in the testing program   through the commission's official website. Alright. That's the end of the article, and it does does it raise the hackles   on your neck?   Probably should. It   let me back up just a little bit.   Half of me   is dead set against this.   The other half of me is saying, why are you dead set against this, dude? This is freaking fantastic.   Let me read this one sentence.  

There is no clearer signal of where finance is headed   than a state   government. And not and we're talking about a state of The United States, Wyoming.   You could say Texas, California,   Florida, whatever.   We're talking about a state   protected by the tenth amendment,   because this shit ain't written in the constitution,   can issue their own   stablecoin.   Right? So they're bringing the dollar on chain. They're bringing The United the federal   backed United States dollar backed by the full faith and credit of the United States government, but a state   is bringing that dollar   on Shane.  

And as far as I can tell, there's nothing constitutionally   that can stop it.   And it becomes a tenth amendment issue.   So   half of me really doesn't like this shit because I'm like, it's yet another stable coin. And what have I said about stable coins? You're gonna see a bunch of them,   a whole plethora of stable coins. And all of them are gonna be designed to ship The United States debt creation   off to the poorest sections of the globe. And that's not going to help people.   It's just not. It's gonna make it's gonna make things worse,   honestly.  

However,   I'm a huge states' rights fanatic.   I love the tenth love me some tenth amendment. If it ain't written in the body of the constitution of The United States, you can do whatever the hell you want.   And they they literally mean that. You can do whatever you want   because the constitution was written where you've got there's some pretty good safeguards as to what a state can and and or, actually, what a state specifically cannot do,   and that's all the federal government should enforce. Right? If it's not written in the body of the constitution of The United States, then the state   makes the determination   for that state   whether or not something is going to be done or not.  

This is a tenth amendment issue. And, again, I am a huge fanatic of the tenth amendment. Big fan. Big, big fan of its work, man.   And somehow or another, these   two tensions are fighting within me   at almost purely fifty fifty levels. I love this idea,   and I hate this idea. I really wish I could get off the fence on this one, but I'm gonna have to wait and see where it goes first.   And finally for today,   400 South Korean officials have disclosed $9,800,000   in crypto holdings.   Ezra Raguera,   CoinTelegraph,   South Korea's ethics commission,   has revealed   that high ranking   public officials, not just public officials. No. No. No. No. High ranking public officials in the country   hold an average of $24,000   in crypto assets apiece.  

On March,   the country's ethics commission for government officials reportedly disclosed   that more than 20%   of the surveyed public officials   hold 14,400,000,000.0   won or $9,800,000   in crypto.   This means 411   of the 2,047   officials subjected to the country's disclosure requirements   hold cryptocurrency   assets.   The highest amount disclosed was $1,200,000   belonging to Seoul City Councilor   Kim Hye Yong.   The officials held different crypto assets including Bitcoin and of course a smattering of shitcoins which I will not name. The disclosure   of public officials' crypto assets follows   calls for transparency   from its Prime Minister.  

In 2023,   South Korean prime minister   Han Deok su said in a news conference   that high ranking government officials must include crypto in their property disclosures.   The official said crypto should be treated similarly   similarly to other assets like precious metals.   On May   2023,   South Korea passed a bill mandating   public officials to include crypto in those asset disclosures in the new system,   granted South Koreans access to the crypto holdings of at least 5,800   public officials starting in 02/2024.   In June of twenty twenty four, crypto exchanges in the country   launched information   provision systems to simplify the registration   of information about crypto holdings.  

The new law was created in response   to the controversy involving South Korean lawmaker Kim Nam Kook who was accused of liquidating crypto assets and concealing holdings of around   $4,500,000   US before lawmakers in the country enforced the Financial Action Task Force   travel rule.   Kim departed from the Democratic party at the height of the controversial lawsuit to relieve party members of the burden   of that lawsuit.   While prosecutors requested a six month prison sentence for Kim,   the lawmaker was eventually acquitted after a judge ruled   that crypto assets were not subject   to public disclosures   at the time   Kim made the transactions.  

So there you go.   South Korean public officials are not idiots. They're holding Bitcoin.   Alright. Ladies and gentlemen, that is   episode ten sixty three. It's in the bag along with the cat who I have not let out.   I do hope you enjoyed today's episode. Please support the show.   Five star reviews on Apple Podcast   is huge.   It's it drives all manner of discovery for this show. If you have the time today,   spend it on me a little bit. I spend my time on you guys a lot.   So if you can,   and if you if you feel that you've gotten value today,   please   I'd appreciate a five star review on Apple Podcasts, or you can stream me Satoshis on any podcasting two point o enabled app. And give me some boostograms. I mean, announce your weddings, announce your child's birth. Do I will read it. Just   give me some boostograms, and I will see you on the other side.  

This has been Bitcoin, and and I'm your host, David Bennett. I hope you enjoyed today's episode and hope to see you again real soon.   Have   a   great   day.