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Bitcoin DOMINATES Wall Street As Jamie Dimon Capitulates! Did We Win?

December 19, 20250 comments♥ 0
00:00Bitcoin is dominating Wall Street right now, and its biggest critic, Jamie Diamond, has seemingly capitulated.And whether he has in reality or not, his bank, J.P. Morgan, is clearly all in.It's the Friday 5 when we unpack the biggest stories of the week.And this week, once again, it's almost all about the government and institutional adoption.I'm going to get into all of it right now on the Friday 5.Let's go.Good morning, everybody, happy Friday, and welcome to the Friday 5.NLW has decided that he doesn't like us anymore and that we're not worth his time.
00:49Just kidding.He's just out because of the holidays.He will, of course, be back into the new year when we get into Friday 5.That means that you get stuck right now with little.old me. Sorry. You have to listen to me talk about the biggest stories of the week that you'vealready heard me talk about all week. First, obviously, we have a major theme right now, right?It's this institutional adoption of crypto. We have repeated stories we're going to talk about.We obviously have the Clarity Act likely coming. David Sachs is saying that we're going to get that
01:25done in the near future. We'll talk about in the second. We have, you know, regulators giving us alot more clarity. We have the DTCC talking about tokenization. We have JP Morgan going basicallyall in with the tokenized money market fund. And of course, at the end of that, we have all thisnews from Coinbase and the Bank of Japan. It's crazy how much news we have on a day-to-day basis.And it's even more crazy how little impact that seemingly has on the price of our favorite assets.I mean, Bitcoin, here we are, 88,000. That was a number that, by the way, I've been talking aboutsince April or May, if you remember back then, Bitcoin kind of broke up. We had the Bitcoinconference. It went over $100,000. And I kept screaming, I have bids at $88,000. It took a long time
02:07to fill them and the ones that were below, but it did. Clearly, Bitcoin just really lovingthe high 80s right now. Ethereum is sub $3,000. I mean, it's just disgusting out there. And whatkind of blows my mind about all this is that there was a time when any individual news story that wehave that's as big as any of the five that we have this week or the 10 that we have in anygiven week that just go missed in the news cycle. Any one of those would have sent pricesabsolutely flying in the past, right? We would have seen a $10,000 God candle to the upsideif you had had an announcement like J.P. Morgan is coming in and accepting Bitcoin as collateral.So now I think the broader conversation, if we're going to talk about why prices are not
02:50reacting to all this, are we now inextricably tied to macro or the bigger question, as I say,here. Bitcoin dominates Wall Street. Are we dominating Wall Street? Are we eating the world? Or isWall Street actually dominating us and eating our asset class? It's a really, really interestingquestion. We talked about the Crypto is Dead article that was going around earlier in the week.That article basically saying, you can't view crypto is its own market anymore because it's beeninextricably tied into all other markets. But we're going to go ahead and we're going to startto cook through these stories because there is a lot to talk about.Trump's cryptosar, David Sacks of All In Podcast fame, says crypto market structure bill markup is set for January.
03:33We've been wondering when we're going to finally get the Clarity Act.I'm old enough to remember when it was supposed to be done by August.And Trump demanded that he would have this legislation passed by August.But of course, that didn't happen.The government moved slowly and efficiently and is a heaping trash bin of efficiency.We know that.And then, of course, as it looked like, we might finally have some clear tail.Owens on the Clarity Act, what happened? The government went ahead and shut itself down because
03:59they hate us and they hate you and they hate themselves. But we did get the government reopening.And now, once again, we have this back on the docket. We've seen quite a few news stories beyondDavid Sachs, who is the cryptos are saying that this is going to happen in January for markup.Crypto industry insiders met with key senators on market structure-filled negotiation.You had, you know, all the usual suspects, except for Kaiser Soze, going to, you know,to meet with Tim Scott and other senators about the looming bill.So we are having movement beyond even the crypto industry meeting with them.We also had the CEOs of banks like Wells Fargo and Bank of America talking about
04:39crypto market structure with senators.So it does seem that we are going to get movement on this.I definitely have my concerns.I'm not going to lie to you.I'm not convinced that this is going to get done because fool me once, shame on me.you know, pull me, for me one's shame on you,fool me twice shame on me.Right?
04:58I mean, we know that the government is notoriously slow.We know this isn't necessarily their number one priority.So are they really going to get this done?Because let's think about this.We have another looming government shutdown coming in January.Yes, they funded the government for an extra, you know, two months.But we have that again.We're going to have that fight.
05:19What happens if we see another 60-day government shutdown?Then we're going to have, you know, coming into the,the spring in the summer, going to be start talking about midterms, and maybe this ceases to bethe big priority that it is now. This is one of those things they absolutely need to get doneas soon as humanly possible because we cannot take for granted that this is the main priority.They got a strike while the iron's hot, in my opinion. Will the Clarity Act be the catalyst foran alt-season or for the bull market? It very well could. Although at this point, it feels likeany good news is already completely priced in and assumed.
05:54Like, I actually think there's more downside in the Clarity Act not getting passed than there is upside for the market and the short term in it getting past.We'll see.Of course, the main sticking points of getting things like this done are defy, right?Samurai wallet guys going to jail.Everybody's signing the petitions.I mean, we still don't even know if code, you know, is speech or if it's legal or not.But we still have some bumps in the road here.And in this actual legislation, still obviously the incumbents are trying to.
06:24protect themselves against the crypto industry, all the places that were better, defy, etc.This rings very familiar of the Genius Act and the fight over yield in stable coins,whether that yield's allowed to be passed on.Of course, the banks don't want that.So we do have still a lot of sticking points here, but let's hope that they get this done.We also had along these same lines, the U.S. Senate has confirmed pro-crypto MichaelSelig as CFDC chairman in a 53 to 43 vote.Once again, everybody knew that this was going to happen, so no surprises here, but I would still view this as very good news for the industry.
07:01Carolyn Pham, who was at the CFTC before, is going to become head legal counsel at MoonPay.She's staying in the industry, not surprising that we have the revolving door between crypto and Washington, but she's being replaced by someone equally as pro-crypto, long history in the industry.So we are going to have more favorable regulation likely from the CFDC.And it seems that the SEC is trying to punt a lot of the control of the industry back to the CFTC.We've had countless comments from Atkins at the SEC that basically doesn't view any of these things as securities unless it's a actual tokenized version of a security.That means that he's looking to take this all over to the CFTC, who's likely going to be the main regulator for the crypto industry.So I think right now, to summarize all of this, we are really.looking, I think, to January for clarity, no pun intended, on clarity. And we need to get it done
08:00then, right? This isn't happening in 2025. It was supposed to happen in 2025, clearly not the case.And just one more story that we kind of had on the docket and we never got deeply into.U.S. financial watchdog no longer sees crypto as a systemic threat. Thanks. When was crypto really ever viewed as asystemic threat, but the F-SOC coming out and saying officially that they no longer thinkthat we are going to absolutely destroy them. Very cool, very good news. Very happy to see it.So that wraps up the first story in my mind, which is everything that's happening with the U.S.Senate and pretty much with the government. Now, the next story here has to be our good friendJamie Diamond
08:52let me go ahead and bring thisupJP Morgan Betts on blockchain with newmoney market fundplus the banking lobby pushed back againstcrypto's new trust charters and lookahead at the week's key eventsthere's so much news right now that it's not even
09:08one of our main stories actuallythat five crypto companiesBitGo ripplecircle Paxos at all I don't rememberthe fifth all literally gottrust charters this weekI have interviewed Dante Desparte from Circle earlier this week.That'll come out soon.
09:26We dove very deep into this, but it's absolutely huge newsthat these guys are going to be able to custody their own assets,aren't going to have to work with other banks to do so.And, of course, as you can see here,that means that the banking lobby is going to hate thatand push back against it because they don't likewhen we have nice things and they can't have nice things.But we're getting this tokenized money market fund from J.P. Morgan, M-O-N-Y,
09:48I believe it's called.it's been seeded by $100 million of J.P. Morgan's own capital.So seemingly there's some real conviction here from J.P. Morgan because they're actuallyputting their own money where their mouths are in this case, which is something that youwouldn't expect from them. Generally, you see them launch things, but they kind of hedge anduse other people's money, but they're really doing it. And so I want to show you a quick videoof Jamie Diamond. Now, we all know that Jamie Diamond, I wish I had a whole bunch of videos ofall the greatest hits of Jamie Diamond that will depress you and haunt you in your sleep,
10:19where he's called crypto scam, anyone who works in JPMorgan that touches Bitcoin is going to getfired, he hates us, he doesn't want to talk about us, blah, blah, blah, blah, blah.Let's see what he's saying now when he goes on Fox News.Let's just, you know, let's go check it out.It's real.It's been around for quite a while, but now it's becoming more effective, more efficient,because people are finding ways to do it faster and cheaper, permission or not permission.Smart contracts, I think, will probably be real.
10:46Probably.Smart contracts, those things can be real.They're actually real.What do you mean?But either way, I mean, is this, I don't know if this is just him capitulating and saying, yeah, we got to do this.Or is this actually just kind of lightly a continuation of the Jamie Diamond?Bitcoin's a scam, but yeah, the technology can be used for something, right?But either way, J.P. Morgan is not listening to him when he talks.
11:13about these scam things.We've got this story right here.JP Morgan will now accept Bitcoin as collateral for loans.Now we saw that they were talking about Bitcoin Ethereum.We saw the CFTC, by the way, also saying Bitcoin Ethereum and USDC very specifically would be used as collateral.But now you can actually use your Bitcoin on JP Morgan, wealth platform, like any other stock or asset that they take as collateral for.alone. I've been talking about this literally for years at the end game, whether we like it or not,for crypto on an institutional level, was when you just have Bitcoin and Ethereum and
11:53Fartcoin and whatever else sitting literally in your portfolio on JPMorgan or on Schwab, right?And it's just a part of your whole portfolio and you can use the entire portfolio to take a loanat 4 to 5%, which will continue to come down. But securities loans for people who are wealthy are muchlower than the general rate and you'll go about your life and if you know you get a margin callyou'll add more in there but it'll be just another asset basically in your portfolio clearly thatis the direction that things are heading right now so i guess the question here like uh you know i'm skepticalof jp morgan so once again we have this overarching theme of is jp morgan capitulating to us or are theygoing to make sure that they just control as much of this as possible so that we can't really make
12:40money investing in it, and it becomes more centralized.I don't really know the answer to that question, but I can tell you that this is notgoing to just be a J.P. Morgan story. This is going to be an absolute everyone's story.So listen, I have to say that I think the biggest story of the week right now is probably this one.This is the DTCC transforming finance through secure tokenization. DTCC is leading the evolutionof institutional finance by securely tokenizing real-world assets.Our solutions combine the resilience of traditional marketswith the innovation of blockchain technology,
13:17enhancing capital efficiency, reducing operational costs,and unlocking new financial services.Now, this might seem like a nothing burgerif you don't know who the DTCC is.The DTTCCC, they custody $100 trillion in assets.And listen, I had to read this like four times.I had to read this four times.Let's scroll down because I
13:41DTCC, Depository Trustand Clear Incorporation, which clears nearlyfour quadrillion in annual transactionsand custodies $100 trillionwill be tokenizingU.S. Treasury securities on the CantonNetwork.Four quadrillion
14:01in annual transactions. That's noteven a real number. They made that up.Hey, guys, we're doing 47 blantillion in volume.That's not a number.There's not four quadrillion of anything.But anyways, they are.Four quadrillion annual transactions last week making the announcement that they were going to tokenize all of it.All of it.
14:24The DCC got a no action letter from the SEC, which sounds like a bad thing.That apparently is a good thing.When you get a no action letter, it means we're not going to come over here and bend you over and beat you.relentlessly like the last administration did.No action means you're good to go.You can do whatever you want.We will take no action against you.The DTCC taking this very seriously and moving very quickly.
14:48This is the settlement system for all securities in the United States,our entire stock market and system.T plus two settlement that went to T plus one settlement, all those exciting things.It all clears through the DTCC and they're going to tokenize it all.ETFs, index funds, securities.They will be settling on blockchain rails.And maybe the bigger story here after all of that was that all the ETH people when they saw that were like,it's obviously going to happen on EVE.
15:17And all the Salon of people were like, bro, fast, cheap, future finance.They rolled with the Canton Network.You ever heard of that?Canton Network.Well, apparently the Canton Network is purpose built for high frequency trading, has privacy features.and is pretty centralized.So they control it.I mean, you know,
15:38it was funded by the biggest institutions in Wall Street.But this is not going to happen on ETH or Solana or Avalanche or any of those.This is happening on Canton Network, which is permissions.Man, four quadrillion in transactions coming to blockchains near you.Did Canton Network's price move?I haven't even looked.Let, you know, this will be a fun exercise.I looked yesterday, it hadn't, but we got coin market cap here.
16:08Canton, Canton, Canton.Cantine.Oh, down 3.35% in 24 hours.I mean, look at that huge pump.It leveled up.Okay, it went from like 0.07 to 0.08.I mean, what are we doing here?What are we doing here?
16:32Okay, so thinking about this, how is this possible?This is a low-cap shitter that obviously is not.Okay, that's inappropriate for me to say that.I'm sure it's great.But I'm just saying, like anything that's not Bitcoin is effectively like, you know,this isn't like a top 10 coin by market cap.They got an announcement that four quadrillion in volume will likely be done on their platform,and that can't even move the price of a crypto token in 2025.
17:02Like literally, what do we have to do here?I swear to God that Biggie Tupac and Bob Marley could come down and have a buy crypto concert led by Jesus himself telling you that the apocalypse is coming if you don't buy crypto and price wouldn't move?I mean, we have reached a level of absurdity that is unbelievable.Like, this is a low-cap coin.Wouldn't you think that even just the news would spark some sort of interest and someone would be like, I just saw Canton in the news, I got to buy that?That doesn't work anymore.I mean, listen, it begs the old question that I talk about with Dave Weisberger all the time,which is like, what is the value of a token, right?
17:36Listen, but I don't think that, like, your average person is, like, digging into the tokenomicsand trying to deeply figure out, like, if that value is going to accrue to them or not.They should just see this thing, and their Uber drivers like Canton Network and DTZC, bro,like, let's get it.And it's just not happening, right?So does value actually accrue to token holders?I have no idea, in general, right?like we've had this debate about XRP, we've had this debate about Link, we can now have this debate
18:02about Canton Network. I keep saying that we're in this world where, you know, utility and fees aregoing to matter, but like if we reprice everything for utility and fees, we probably need toreprice things much, much lower. I talked to Raul Powell yesterday. That'll come in soon. And I kind ofmade that argument to him, and he pushed back and he said he views these assets through Metcalf'slaw, you know, adoption of exponential technologies. I agree with that to some degree. But the bottomline here is that there's nothing, there's no announcement that can make anything move rightnow. There's no individual catalyst. That doesn't mean we'll stay here forever. We just have to bereal about the market. Like this thing, Canton Network should have TEDxed on an announcement
18:42that big. There's no bigger announcement in history of crypto. It's bigger than anything andliterally nothing happened. So the next story that we have after having to talk about the DTCCC,see it's crazy that all we talk about is institutions and governments but uh here's a slightpivot i guess we have coinbase big announcements stock trading rolling out on coinbase in theunited states this seems like a huge piece of news but like because we hate everything ourindustry coinbase's big announcement that you can trade stocks is literally the opposite of whatwe signed up for i love lio i don't get all of the pushback right now uh againagainst Coinbase for this announcement.
19:26I think that this is absolutely huge.We want our incumbent companiesto understand the industry.I've been here from the beginning.We want to be eating the financial systemfrom the crypto side, not having them eat us,as I said before.And I think that this is just one natural step
19:40in that direction.We all know that, especially with tokenization,everything's going to be traded everywhere all the time,24-7, 365, right?And so I think this is just a part of that.And obviously, Coinbase also wantingto compete with the Robin Hoods of the world,who are coming at it from the other way, like Robin Hood was stocks first, came into crypto.
19:58They're also now talking about tokenization of everything and moving forward very heavily onthat. If you missed my conversation with Johan Cabrat on Sunday from Robin Hood, you shoulddefinitely listen to that because he dives deeply into that and explains it. But that was justone of the two big announcements from Coinbase this week. The second, Coinbase launches customstable coins. Users can now issue branded stable coins back one by one by Coinbase custodyneed collateral. Obviously, I never wanted to launch a mean coin, but I will belaunching Scott Malker Stablecoin. So all of you can tip me for all of this free shitthat you keep getting for me. I haven't seen any of you pay me anything for showing up every
20:36day. Like, I'm literally here every day of spending money. Actually, I don't want anythingfrom any of you, to be honest. I just love your attention that you're here. But yeah, I don'tknow. Like, what's the upside of launching a stable coin? This is clearly notfor guys like me, probably for institutions who say, hey, man, probably easier to just partnerwith somebody who's already doing this than to do it myself. I asked Dante Desparte about this,actually, and he said, say my name. I think that's literally what he says. Say my name. There's aUSDA thing. It's not a stable coin thing. It is true. All this is with USC, and we're seeing thispush and pull between the two potential systems. And I've talked about this a lot of how institutions
21:19are going to adopt our technology.Stable coins first, but I think there's a bigger storyor that kind of gives us some intelon what's going to look like in the futurefor the whole industry.And there's either partner with somebodywho's already doing it that's a crypto-incumbentso that you can be ahead of the curve
21:34and be early in the raceor try to build this entirely yourself, right?And we've seen a number of banks say,hey, I can't remember if it was Bank of Americaor Wells Farger, but Bank of America,you know, looking to build their own stable coin.At this point, it's like maybe we should just givefew bips of those fees off to Coinbase and USC and just utilize theirs and we can white label it
21:54and put our name on it. But I don't really see the pushback against Coinbase on any of theseannouncements. I think they're actually quite big for the industry and we can see how fast everythingis moving in a very, very specific direction. And frankly, I'd rather cheer for Coinbase offeringstocks than for JP Morgan offering crypto, right? I think we can all agree on that.because Jamie Diamond is just such a douchebag.Guys, you're going to have to bleep so many things.I'm sorry.To the producers and editors, it's live.
22:29We're going to get mushed by the algorithm.It's what we do.Yeah, but you guys can tip me in Wolf Token meme coin coming soon in 2027.We have one more big story because we had to talk about this the other day.I think it was one of my titles that the market will die on December 19th.last I checked, it was December 19th and market, it's still here. We're still here. I think,are we here? It's still here. YouTube was down today, so I don't know. Maybe the market couldbe down as well. But we have Bitcoin pretty much flat, everything pretty much flat.
23:04And December 19th is here. You may remember this article that I showed you. By the way,we made it our title and then I pushed back. So it's not like I actually thought things were going todie. But December 19th, the date everyone is ignoring that could crash yourcrypto portfolio. This is the Bank of Japan raising rates. We've talked about it ad nauseum,so I'm not going to dive deeper into the yen carry trade in the way that everybody was gettingfree money from the yen, borrowing it there, going other places, and using that money toinvest in assets that actually made you money. We've had three times in the past,basically, a year, slightly over a year, where,
23:47we've seen the Bank of Japan do the unthinkable and hike rates, March 24, July 24, January25. That was a led to a 23% drop in Bitcoin, a 26% drop in Bitcoin, a 31% drop in Bitcoin.But as someone pointed out to me on Twitter spaces, all of those three things lined up withvery major other events like, I don't know, tariff's announcements hitting and all theseother things that actually rock the market. But you can't tell me that when everybody knows alreadythat the Bank of Japan is going to hike, that that should be rocking the market today. I think thatnotion is stupid. I think this is largely priced in A. And B, I just think the carry tradeis already dead. If they've been raising rates, that has already unwound. And that was a narrative
24:36already from last year the last time we talked about the trade unwinding. So yes, do I thinkthe era of free money from Japan is largely over. Of course I do because it's obviously over.But if it's over, then this kind of news should not be rocking the market. This was it.They hiked rates to the highest level and 30 years up 25 bits. You can see that chart right there.I mean, that's like a zombie coming back to life, right? A flat line. And then all of a sudden we've gota heartbeat coming back. I mean, those are the five stories that we have.here for the week. I feel like NLW's fired because I'm so good at this. It's much better when he'shere. He's very, very smart and we need to get him back post haste before I get kicked off of YouTube for
25:24using too many bad words and talking about Jesus coming down to sell us Bitcoin. But yeah,that's all we have for you today. I should mention that it's in the description, I'm assuming,if my people did their jobs. I have a telegram group that I never talk about. It's my entireteam like posting all the big news stories that are happening throughout the day with someincredible analysis there's nothing being shilled there at all we don't even talk about all coinsbut there's a whole community I engage I talk to you guys and for the first like six months thatwe had it it was gated by an exchange sign-up link only because we wanted to not have bots andfake accounts and scammers you didn't have to do anything we remove that entirely so be careful
26:06of bots and scammers if you see any there haven't been yet but it's completely freeIt's down in the description.There's two links.You just sign on one.And it will give you the news feed and all the analysis.That's the one way channel.And then the other one is the community where you can chat.I literally go in there.
26:21I talk to people.If you have Telegram, it's amazing.It's amazing.We only got like 800 and something people in there.Like you said, I never mention it.I never talk about it.But here I am.I'm mentioning it.
26:34And I'm talking about it.So we're coming into the holidays here.We know that, you know, things are going to slow down with all these channels.I would recommend, you know, we're going to knock out macro Monday next week and probably through Wednesday.And then everybody just go, like, touch grass, touch snow, do something, hug your kids, your wife.Nothing's dramatically moving price at the moment.I personally am just running the shit out of arch public algorithms, buying Bitcoin on every dip.I've now deployed massively.
27:04I'm actually going to start another portfolio with them on OKX, it looks like.They're launching with OKX as OKX comes back in the United States.States. You know that I have a long-standing relationship. I used to be a global brand ambassadorfor OKX. So very, very excited about that. And yeah, I will be back on Monday for another macro Monday.And we have amazing, three amazing podcasts coming that are all will be recorded by today.Dante Desparte from Circle, Raoul Powell. That one's incredible. And today I'm a recording one withAustin Arnold of Altcoin Daily. I've been on their channels a bunch, but actually I've neverhad them on mine. So looking forward to having a conversation with them. That's all I have for you
27:46guys today. Remember, it's very important that cash rules everything around me, even get the money,dollar, dollar bill, y'all. See you on Monday, Pete.AI is reshaping the world, but right now it's stuck in the hands of just a few big players.But what if AI could run openly, verifiably, and on chain? That's what ZeroG is building.The world's first decentralized AI operating system open to everywhere.Imagine a network where you don't just trade tokens, you train store and run independent AI models at scale.No lock-ins, no black boxes, no single point of failure.Just quick, cost-effective, auditable AI that anyone can build.
28:25If you believe the future of AI should be a public good and not just another corporate monopoly,join us at 0g.aI.That's the number zero and the letter g.aI.