hello and welcome. so it is, your ecology will always be a good story. now he is, is on the $360.00 view of next and will be back with some sleuthing around the world. ah ah ah ah

ah ah, on 600 b c. the 1st official currency of the lydian estate or was meant the coins were mixture of gold and silver, with pictures stamped on them for differentiation of values. we have come a long way since in and with almost every other aspect of life finding a digital component. it was only time before money became an option into the world of crypto currency. and well, many have yet to understand the system fully. as popularity quickly grew as individuals wanted to a financial transactions without relying on governments or banks. i'm huge on this

episode of $360.00 view, we're going to look at the rapid growth of crypto and what it says about the sentiment towards government. and if it will be able to survive the recent scandals plugging the digital currency. let's get started. on the news, the fall that has been closely watched around the world. will this also lead to the end and other crypto currencies? as we know, it was a national correspond roxan us a lot of breaks down the craze of crypto roxanna. scotty, when c e o sam batman fried, filed bankruptcy, leading to the collapse of f t x. this jump started men investigations, including from the securities and exchange commission, the department of justice and the commodity futures trading commission. while

batman treat made multiple appearances after his fall from f d x in the media, he never discussed if he's liable for the company's failures or loss of billions. it wasn't until the f d x founder was arrest that in the bahamas. he could no longer evade questioning. bahamas prime minister philip davis tweeted a press statement saying, while the united states is pursuing criminal charges against a b, it individually. the bahamas will continue its own regulatory on criminal investigation into the collapse of s t x. while that continues cooperation of slowing 4th month am regulatory partners in the united states and elsewhere. the fall of f. c. x has sent shock waves through the world of crypt, the currency. it could change the future of crypto as we know it f, the x became on of the largest crypt currency in the world. that is to make

a marketing deals with the life of the curry and tom brady. now with the company sought insolvency, a loss of faith from customers. other rivals like coin base and bitcoin are beginning to worry. it's sold, they're worth full drastically in the weeks after f, the x collapse. but what led people to invest in this alternative currency to begin with? is it does the people are looking to get in the ground floor of the next big thing? is it just for the rich with extra money to spend looking for the hud new way to burn it? crypt occurrences begin in popularity as an untraceable on taxable and regulated form of currency change. unfortunately, with the falls at the eggs, this has led to investigation that could actually in the new regulations on this type of currencies causing crypto to lose it's initial appeal. some back my freight

is facing a total of 12 charges as b f, as he is refer us is currently awaiting trial, roaming free on not $250000000.00. billed one. i'm brooks and us alumni for 360 view. back to you, scottie. very interesting. to watch this, it will have an effect on other possible trials that happened with crypto down the road. thanks for joining me now to discuss is arthur a wilmarth, a professor at g w law school. here in washington, d. c. author of attaining the mega banks. why we need a new class, a stick, all act. and he's also testified before committees of the u. s. congress, the california legislature and the dc counsel and financial regulatory issues. thank you so much for joining me, professor wilmarth. i appreciate it. thank you. nice. be with you. ok, so crypto currency has only been around for about a decade. it's not as simple subject get it gained very rapid popularity around the

world. why do you feel this is, and are there any common factors amongst those who are attracted to this form of currency? well, i think it mirrors a lot of other so called innovative ways that we've seen in history the recent way with crypto currency. it looks a lot like the dot com boom that happened in the 990 s, for example, where people said, well this is the next big thing. and the normal rules of financial gravity don't, don't apply that. the technology will curie itself. i think this had an additional wrinkle which wasn't, it wasn't just investing in high find stocks. it was investing in a, in a whole new class is usually a currency, which wasn't really linked to anything other than the companies that issued it. and the notion was, well, this was an entirely new form of financial services outside the nor regulatory system. and so how this would give people who weren't involved with mainstream

finance. as i think your presenter indicated a chance to get on the ground floor and, and there's a lot of marketing and saying, you know, don't, don't miss out on this unbelievable opportunity to become rich literally overnight or at least within a, within a few months. and i'm afraid a lot of people, you know, sell for this and to their misfortune that a lot of unsophisticated, poorly informed investors, you know, put a lot of money into crypto currency as they were peaking and then last a lot, when they crashed. what's interesting, you do bring up several reasons why people are attracted to it, but i also have to ask, do you believe that this rise in this, what's considered when alternative currency has anything to do with the insecurity felt by the public regarding their own financial security? being controlled by a government. ah, yes, i think that that is certainly the pandemic yoke crash and, and,

and then the boom to follow all the stimulus. money coming out into households. and people become disenchanted with traditional forms of investment which follow their own. you know, boom and crash cycles. they, they felt that the, that this would not be manipulated by government. this, this would be somehow free of government finance lane. you might say the problem is that it was also free of government regulation. so there were no real restraints on the ability of crypto currency providers to engage in classic you know, pump and dump. market manipulation on the scheme type of pyramid scheme, types of, of, of frauds. which unfortunately, we've now seen played out a, with the crashes of terror form celsius voyager, you know, on and on. and most recently after axis, these look a lot,

i think the classic ponzi scheme pyramid scheme pump and dump schemes. we've seen repeatedly in financial markets, particularly where they're not regulated as how i get to the government regulations later cuz it's definitely something we need to address. but often talk about another element is a 3rd party option in regards to crypt out. and that would actually be forget the government, but you get bank oversight. could this be, do you think an acceptable compromise? ah, yes, i think so. the problem we're seeing already is that some banks have gotten heavily involved in crypto currency activities. for example, signature bank was holding a lot of the deposit accounts of celsius when celsius failed. we now find out that silver gate bank holding deposits of f t excellent f t x failed. not clear where those deposits are and who will get access to them. also made it through alameda and investment in a small bank currently known as moonstone bank. it's not clear,

you know, their deposit went up by some tens of millions of dollars afterwards. not clear. you know what the, what the story is behind that. currently, sophie bank is engaged in crypto currency trading activities, but is under a temporary authority to allow them to do that for the next few years. and again, this seems to me very poorly thought out because we haven't had a systematic review of this problem. and regulars really haven't come up with a systematic approach. i mean, i've argued that for firms are offering so called stable coins, that promise that they're going to maintain, let's say $1.00 to $1.00 parity with a dollar that has to be done by f d. i. c insured banks inside f d. i. c insured banks that are fully regulated because that's essentially money. i

think what we're seeing is if you allow what looks like money to be created outside government regulation, government control, particularly outside the banking system, all sorts of problems develop. people begin to think that, that, that's what they're holding is just as good as money, but it's not regulated like money. it's not controlled like money. well, so it's interesting, as you've mentioned, several banks, which also mentioned already several forms of crypto. there is, do you think it helps or hurts the crypto industry that they're actually thousands? i think almost more than 9000 different crypto options available. and do you think this makes it currency like you mentioned? that's one of the reasons why we can have fraud and the lack of accountability. well, so we should distinguish between i think, 2 major types of crypto currencies. one, i would call generally called variable rate, or variable interest script or currencies like bitcoin for example, or a theory i'm, that their value goes up and down. it's not paid to anything else other than its

own, supposedly intrinsic value. that looks like very much like an investment to me, whether it's a security or commodity is it is the source of active debate. but certainly one should think that the fcc with regard to crypto currency is it should be viewed as security as and the c, f t. c, with regard to those that should be viewed as commodities should be actively involved, both with issuers and exchanges. to make sure that the traditional investment investment protections that we are familiar with for security and commodities are applied. and if there are gaps in those protections congress ought to fill them. the other general category is, again, this notion of stable point is that it's a crypto currency, a digital point. the promise is that it maintains parity with it, with a currency, almost always the us dollar. to me that kind of currency is money is

really equivalent. it should be viewed as equivalent to an f t i. c enter deposit. and then for me, that means that it ought to be an f d i. c enter a bank regulated like other f, t i. c enter deposits are regulated to give people the absolute protection. they're going to be able to get their money out. dollar for dollar when they need it. after the break, we're going to continue our conversation with dr. mark about whether government will get more involved in the currency. the ah ah, needs to come to russian state will never be tied up on the nose landscape with

anyone else with rural van in the european union, the kremlin. yup, machines. the state aren't russia today and switch r t sport neck, even our video agency, roughly all band on youtube with me. i look forward to talking to you all. that technology should work for people. a robot must obey the orders given by human beings, except where such order that conflict with the 1st law show your identification. we should be very careful about artificial intelligence. and the point obviously is to

place trust rather than fear like take on various job with artificial intelligence. real summoning with a robot must protect its own existence with oh, we're going to junior our conversation with professor of law arthur e. will mars an author, obtaining the mega bangs, why? we need a new glass to gall act and has testified before. several committees including the u. s. congress, california legislature, and the d. c. council on financial and regulatory issues. thank you so much for continuing to chat with us as obviously this is going to be a conversation that's going to happen in the future. and president bite in the

united states, actually in the spring of 2022 shined and this order for oversight of crypto currency. what is that order do? and was it actually a good move for a head of state to get involved in a currency still trying to figure its way out? well, i think that these actually water really called upon the different agencies of the federal government to develop if you like, action plans to deal with the growing risks and challenges posed by digital assets of different kinds including crypto currencies, try and stable coins is a part of that, of that universe. you also have congressional committees looking at this issue and several bills have been floated. i've been very concerned that some of the congressional bills that were seen you know, really try to approach to what i call sort of a regulation light approach. much, let's set up a special program for crypto currency or stable coins that has less than the normal

protections we would expect or investments in securities or commodities when we talk about variable interest or variable rate, crypto currencies or, or less than the, the protection and accountability we have for bank deposits with the f d i see system in the federal reserve system that supports it by view is we can't, we can't treat these crypto currencies as something different in kind. they are simply a digital representation of the same kinds of investments in the same kinds of deposits that we've seen and traditional finance. if we treat them differently, they're not going to be properly regulated. people are going to be disappointed and what happens to them. and then they're going to turn to the government and say, look, i mean you, you claim that you are taking care of the situation. but in fact, you didn't give us a quibble and oversight and protection as we have with the fcc,

the c f t c, the f d i see in the fed. so this notion of creating the alternative system that somehow is, is, is promoting innovation. i think is a very bad idea. unfortunately, one of one of the innovation said that often occurs is fraud when something isn't properly regulated. and we've certainly seen that in very bright colors with the ex collapse. okay, so moving on from the united states, obviously it's not a small world after all. what effect you believe crypto has had on the global economic market? and what you predict for the future was really every, i think every government is going to have to grapple with the same issue. and there's a big question about whether the global regulators can agree upon a common set of regulations to deal with capital currencies and stable points. certainly, as we've seen with f t x that you know,

chose at different times to locate itself in hong kong or singapore, the bahamas finance. no one exactly knows where it's located. these other firms have generally been located an offshore jurisdictions with very weak forms of regulation. certainly we have to, you know, we have to avoid this race to the bottom problem because it will, regulators don't adopt a common approach that is satisfactory. inadequate. it will surely encourage operators to, to run, to the jurisdiction with the weakest form of regulation. and unfortunately with the internet it's, it's not, it's not very feasible to sort of say, well, ok, you may have been a week to restoration with poor regulation, but you can't reach our investors. we know that people can unfortunately reach people, people worldwide through the internet. even when they are prohibited to do so, you know, how do you stop that from happening?

well, it's interesting because as you go through all the different things and not only the in the united states, but across the globe, fraud is going to show up. what is one of the few things that you would suggest could be done to help combat fraud with in crypt are not only in the united states but across the globe? well certainly i think it's important that regulators work through the basel committee, the financial stability aboard the international monetary fund or other international bodies to, to, to develop common standards and to develop penalties for those who don't follow them. certainly through our financial criminal enforcement networks in san and treasury sanctions. we have other ways of, of dealing with things like money laundering, sanction in terrorist funding and things like that. so there are other ways that we can deal with it, but i think that it's important that we work through international bodies to try to

develop robust and adequate oversight and safeguards for these these sort of, i call them make believe currencies. because when you look at it at bitcoin, what's behind it, there's no, there's no intrinsic value behind it. it's just that the field is sort of the greater full theory. somebody else will pay more for it than i paid. and i think that's a, that's a very important basis to encourage people to invest well. and it's really interesting about this, but i have to ask, you know, as recently we've learned not only about the rest of sam david fried who, which affected the trust in crypto. i want to know, how do you feel about these private individuals using crypto to interact with government? should governments be taking forms of payments from a private individuals via system that still so insecure, unregulated like crypto is at this point. one of the most struggling aspects of the sam bank and fried story and they have to ex,

or is that they were funneling tens of millions of dollars into our political system. he was one of the largest donors to political campaigns during the 20 to 2022 cycle and they were definitely, he and others were definitely trying to influence legislation. and as in my view, get white touch, inadequate regulation. i think this should be considered a quite an embarrassment to those who accepted his campaign contributions at the same time as they were considering legislation to regulate what he was offering. i think this should be considered you know, a lesson for our political system that we should be very, we should have oversight and accountability of people who are funnelling money into our political system at the very same time. they're trying to get advantageous regulatory treatment for so called innovative products. that to me is usually a recipe for fraud and misconduct. and that's one of the things that you order.

well, they actually want to self placed himself is given the point is i guess, can the kid with the cookie jar to regulate themselves. it's almost making the opportunity to much that they can pass up. alternately, looking into the yes. yes, he was considered a great celebrity right when he was passing around all this apparently free money, but now we find out that a lot of it was actually his customers money that he was misappropriating. and if you, if you, if you read the indictments and the charges from the fcc that have been leveled against him. well, it's interesting, you know, going on us to continue on the, the asked to share some people, including people to judge has said that he's going to return the money to campaign money that he was given a already actually did that. do you think others who contributed or do you see 1st the others actually getting their contributions back as well? i was just that some i would be surprised if all did, but i suspect as the as disclosure is made about how much different

campaigns received there will be, i think public pressure to do that. and i think that it really should. i would hope that congress would begin with a completely clean slate and, and not try to push forward legacy bills that were being aggressively lobbied by sam, bank ma, treat, and other crypto currency operators in 2021. in 2022. i think, i think, i think we need a new slate after a thoroughly investigated exactly what happened because as i see, as i said, i see a real commonality real common pattern emerging from what i read of these various collapses of terror forms burridge, or celsius. and now there's a very disturbing pattern of committee lane, customer funds, misappropriation, false promises market manipulation that is very disturbing. and i think our

rages pattern that should cause us to completely rethink our approach to this whole area. which brings the question, speaking of what you just said, all of the different reasons are coming to light about crypto even after 10 years. why would someone today still want to invest into the currency? and when you look at the, their options are the majority of them coming from the united states, are we seeing more and more options coming from other countries? right. this, this is, this is a problem because i've been saying for several years now that i couldn't see any investment case, you know, for critically the so called variable rate crypto currency is like bitcoin, other than the greater full theory that somebody else will pay more for it than you did, which is a very bad that's essentially a pyramid scheme and and there was certainly has been pretty strong. busy as a market manipulation, encrypt or currencies by the promoters. so i, i saw a,

i've never invested and i wouldn't encourage anyone else to do so. but i think, therefore there's, there's really a strong case for rigging more aggressive regulatory action than we've already seen . i mean, the action against stan bank brachman free, the f t x and alameda is welcome. but there's a question is why it didn't occur? you know, at least a year ago. i think that there were questions being raised for a number of months about the operation that was going on. well, thank you are well mark for such an in depth conversation about crypto. we'll talk to you soon. i have little doubt. the reason why so many around the world embrace crypto currency so quickly was because of their own fear and doubt in the established systems already in place. and for good reasons. many investors believe

it can hold its worth during times of rising inflation and economic stress, which is something almost every country around the globe is dealing with. the more uneasy someone feels about their own current government and the economy, the more they look to secure somewhere else. as i call to say, one of the other strongest factors influencing crypto trading is follow the fear of missing out. now this comes from a history of boom's life, the dot com era, an apple where people, that's it early and made millions on a short term. and while we hear often of those companies and ideas were, were successful, there was a far greater number which failed either because of a faulty product or faulty management. you know, this is the risk which comes with any relatively new product. and while little or no oversight is one of the major attractions, having no structure, makes it right for corruption and fraud. as we are seeing now emerge because of this one day will crystal current,

they have to accept government involvement hall in order to survive. the one institution which motivated its creation in the very 1st place. only time will tell . i'm sky now huge, but your 360 view. thank you for watching. ah huh. ah. a government has been killing his own people and on boss for 8 years. it's amazing that vision not being covered in western media. it hasn't been covered for the last 8 years. i'm here for 5 minutes and then i'm told the 1st 5 people they found it was 5 decapitated heads up in a quarterly request on demand. a boy fos, cathartic to determine can you use me no fiber to say kid is on your father law kid,

even the information war. almost all the independent journalists pointed out that nato and the u. s. were directly responsible for initiating the military conflict in ukraine. our casualties of it as long as we want the war to continue. we will fight that more using ukrainians as proxies and we will fight it to the last ukrainian death. that's what's happened in dumbass this whole time. this is, these aren't objects. these are people that and so that's why i do what i do. that's why i'm here. oh, i just don't know. i mean you have to shape out the scene because of the african and engagement.

it was the trail. when so many find themselves, well, the part we choose to look for common ground ah, red line this out of the game pointing to live with for now, not the ideal of these planes responsibility for the fact. on the end, no russian border region examines the evers behind the scenes. the position is $100.00 girl. the iran are hospitalized with a mysterious respiratory ailment unit. speculation might have been a toxic gas attack. the 4th, to pose a power to government advisory, this new romania.