Can DeFi Be Regulated? DEXs, DAOs & Crypto Law Explained | Daily Crypto IQ

Let's go. Welcome to Underground Crypto, your deep dive crypto research show. I'll be with you in just a minute. [music] I never knew. [music] I never knew. [music] >> [music] [music] >> Hey, down. [music] >> [music] [music] >> I think that we're just holding on to something. [music] Heat. Heat. N. [music] I think that we just holding on to something. I think that we're just holding on to something. Just tell me what's Hey, hey, I think that we just holding on to something. >> All right, and we are ready to kick this thing off. How are all my undergrounders doing out there? We are back. It is Wednesday. It doesn't matter what day it is. We're going to raise that crypto IQ. And I am fired up, ready to go. Let me make it so you can see what

I'm looking at here. Let's pop over to that 4hour Bitcoin chart. And again, how's everybody going? I got a great stream for you tonight. Are you ready to raise that crypto IQ? Are you ready to know a little bit more about how things work than you did yesterday? That's all that really matters, right? That we know a little bit more about what the heck is going on. than we did yesterday. See, I think I like that. All right, there we are. So, look at this 4hour chart. We are still above the 200 day moving average on the 4 hour, which if you know, if you got the life vision, then you know that that is usually a pretty good sign. What I can't ignore is this. And it does seem like you're starting to get that breakdown there. It's

a shoulder head and shoulder pattern. We're going to go ahead and draw that measured move and leave it up. So, if that were to play out, this is about what we would be looking for initially is a a dump down to the really the bottom of this this whole region right here. you'd be looking for like a break to the bottom of that which is about 58,900 call it 69,000. So that's if that shoulder head and shoulder plays out. But before that can happen you need to lose the 21 on the 4 hour and you need you need to lose you know the 4 hour 200. So, we'll be watching vigilantly. Our stochastic RSI is a little bit overbought. So, that might need to reset. So, the name of the game here is kind of sideways. Stay above the

21 as your stochastic resets itself. That would be pretty awesome. That would say, "Hey, we got like another leg to this BTC pump. All right, let's kick this thing off real quick. I got a whole lot of things to tell you. Hopefully, you're ready to go. This week, we are asking who actually writes crypto rules. That's the series, right? Monday, we'll walk you back through the week. We examine the agencies and the institutionals competing for authority. Right. Today, or Tuesday, sorry, not today. Tuesday, I'm getting ahead of myself. We broke down why crypto assets might be treated as securities or a commodity or collectible in a digital tool. We went really deep in yesterday's show if you missed it. I highly recognize recommend I don't know why I can't talk. Uh highly recommend going back and watching that cuz

man we went over so much stuff. And tonight we move past and we [music] move into the parts of crypto that challenge the entire regulatory model. Decentralized finance. The regulatory model was so not built for reg for decentralized finance, right? I guess I got to warm up a little bit. All this talking, it's hard. Who talks very often? Uh the central question is not whether governments want to regulate DeFi, right? That's not what we're asking because obviously they do. The hard question is what the law can attach to when a smart contract has no CEO. Like what are they going to attach themselves to? Who are they going to go after when there's just code on the internet? [music] No physical offices, no customer account department, and no possible kill switch like BTC. That makes it very difficult. So,

we are going to separate the protocol from the front end and the DAO from the developers and the technical immutability from the legal immunity. It's going to get deep tonight. We're going to raise that crypto IQ. Shout out to all my undergrounders who are here. Streart in the building. Blues Guy, Melissa, Funky Farret, can uh somebody test that Discord link. Make sure it works for me. And uh Blues Guy said, "Life is not just the passing of time. Life is the collection of experiences and their intensity. Thank you, God, for everything in my life, the good and the bad. Some were blessings and some were lessons. Absolutely. So, shout out to all my undergrounders. I know a few more people are going to come rolling. Uh, I love the intro that we do on the stream now. I hope

you do, too. Really sets the vibe for what we're going to be getting into. And by the end of this show, you should have a much clearer answer to this question. Can DeFi escape regulation or does decentralization simply move regulation into a different layer? We've talked about all the different layers many times. Melissa says it worked. Thank you very much. I appreciate the promptness that you always bring. This discussion is educational and is not legal or financial advice. Always remember that. Never financial advice here. I'm not a financial adviser. Quote of the day. I feel like he gave us this quote before. If men were angels, no government would be necessary. Interesting. So, what you may not know, sorry, I'm just making sure I got everything right here for the show. It's like, wait, what? What you may not

know. In April 2026, the SEC's division of trading and [music] markets created a limited interimm path for certain self-custodial crypto trading interfaces, right? including interfaces connecting users with automated market maker pools to operate without a broker deal registration. The conditions reveal what regulators considered to be important. The user must control the transaction parameters. The interface cannot be recommended a specific transaction, right? Like so they can't recommend a trade to you. [music] Routing must use objective disclosed criteria. So you got to be able to see what [music] you know the routing which paths that the routing is taking has to be disclosed to the user. The provider cannot exercise control or discretion over the trade or discretion. Uh compensation must remain neutral across products, venues, routes and [music] counterparties and conflicts, fees, routing, cyber security practices and mev risk must

be disclosed. This is only a staff position concerning one broker deal registration question. This is not a a commission rule carrying no independent legal force and is scheduled to expire after 5 years unless replaced or extended. And that is from the SEC staff statement April 13, 2026. There are two important distinctions here and I hope you guys remember what we got into last night. The sentence current clarity text would distinguish control non decentralized protocols from uh neutral infrastructure by examining control discretion upgrade power and censorship ability. It would also treat web hosted frontend separately from underlying protocols, nodes and wallets. As of July 15th, 2026, this remains pending legislation, not law. So it's still pending. The other point here is that Congress repealed the IRS rule that would have imposed broker information reporting requirements for certain DeFi frontends. That

repeal removed the reporting rule. It did not declare DeFi transactions tax-free, though. And we're ready to kick this thing off and get over to those crypto bubbles. Just wanted to introduce you to what we got going on. And I hope you guys are ready to learn here and we had such a nice green day yesterday. Wh That's the wrong button. Never mind that. We'll do the intro again. The crypto bubbles. Let's go. All right. So, [music] up 12%, Ephi up 12%, pumpf fun up 11%. But Aikita, Lighter, Daxi, Arbitum, Hash, and Bitcoin Cash, they're all down a little bit here. Anywhere from like, you know, eight to close to 10% to more like four or five. Let's toggle that one through 1,000, right? And I don't really see anything crazy going on, right? your biggest gainer 3.9% and that's

probably mostly one coin. Yep, look at that. It's how it usually goes. Aikido, but for the most part across your top 1,000, not a whole lot going on, honestly. Kind of low liquidity. Everybody's sitting on their hands waiting to see kind of what's going to happen. Cash Cat though is down 30%. It was down 40% earlier. Uh down to 106 million. So, a lot of millions came flying out of this thing. I think it was like 150 or 160 million just yesterday. So, like $60 million came out of Cash Cap, right? That could be good. We could see liquidity flow out of that into other projects, right? That would be uh, you know, something to watch for that the flow of money. Tibber's down 14%. humanity. I'm surprised humanity is even in the top 200 anymore. 1 to 200

with 116 million still in it. No meaningful recovery really. Velvet down 11.9%. We touched on Tibber. Let's see. UB 15.6. Unibase with a nice 15% 16% pump today. And that's really all there is to report there. Ecash, let's go down another 100. Melissa says, "I changed it the other day." Thank you very much. I appreciate that. Uh, weather and the Flare network are becoming connected through a recent partnership. Uh, to tokenize Yeah. Meteorracle data onto a chain via Flare Realtime Oracle. That's huge. That's cool. Well, I saw that you posted about that and I I didn't get to get I didn't get to look at it deeply, but I did read what you posted [music] in the uh Discord. Appreciate you doing that and we'll check it out live on stream when we get to that part. All right,

so Anom is down 19%, Lab down 13%, and what is Lab even at? 22 cents. Let's see. So, it had a pump as low as 21 cents, as high as 26, and then back to 22. Not a whole lot to report there. Rave Dow up 15.8%. I Are we going to do the Rave Dow again? Are we going to be raving? Guay down 15%. Hex getting a pump today. That's very interesting. I'm ready for Hex to run. I own a tiny bag that I bought a long long time ago and totally forgot I had. It's really not much. I forget why I bought it in the first place. I'd have to find the wallet that it's in. But if it pumps hard, I guess I'll go figure out where that's at. You know how it goes when you're real

web 3 DeFi and you mess with a lot of protocols and have a lot of wallet with uh dust I guess you'd call it at this point because that hex that I had went to absolutely almost nothing uh let's see magma doing well 12.8% 8%. This is a sweet ecosystem. We've learned some pretty cool things about the sweet blockchain. Of course, Pulse following after it 11%. And PulseX as well. Then you have home. Home is a you know it's called DeFi app, but it is a DeFi app on the base blockchain. We discover so many little gems of knowledge as we deep fi as we deep dive. We found home originally on our base our base blockchain deep dive. So, we find all these little gyms and they compound over time if you come to the stream day after

day. And it's Wednesday. For whatever reason, Wednesday's always a slow burner as far as people coming in. [music] Takes a minute. Uh Melissa says, "Hex, please. I have pulse chain is good." That's something, you know, I would love to do a series on Hex. I'm sure their community would love that, too. You want me to to look at it for a minute? I'd be glad to do that. Where'd it go? It literally just disappeared, guys. You watched. You watched Hex just legit disappear off of this [music] map. It probably moved up. Let's go up one maybe. I don't think it moved down. Yeah, that's what happened. It's a conspiracy. No, it just went up. It's literally number 200 right now. So, it'll probably bounce back and forth between those categories. and Hex and Pulse and all them for the

longest time had such a problem uh being listed, being shown pretty much anywhere, any exchange, all that stuff. It was uh it was very strange. Again, Hex, they have no market cap for it. They say that the max supply is infinite, but there's just no m there's no circulating. So, they have just no information about Hex, which I always think is so weird. Like they literally at this point they can't find or know anything about hex. So who knows anything about hex? That's what I want to know. And then of course at this point you're really I guess you need to look more at uh so wait do they at least so how can they tell you what the market cap is and how can they tell you any of that stuff if they don't know the circulating supply

and they don't know the market cap. How are they giving you a price just cuz that's what's reported elsewhere and they're pulling it. Very interesting. Yeah. Melissa says, "I don't understand what's important about the weather and flare. I mean, it's a cool application. I don't I don't really know what's significant about having the weather on flare, but to know at underground you don't have to." All right. Well, we're going to move along. because I don't really know what to say about them. I would like to deep dive and look at like things like Pulse Chain and stuff a little bit more. That would be a lot of fun. Um like the actual what they got going, what they what basically Pulse Chain is built in like the last year. That would be interesting. And the cool thing for me

doing this show is that whenever there's something I'm like, "Huh, I don't know a ton about that." I could just do a series on it and deep dive it for a week. It's uh it's a good way to stay focused and really cover some of the niches I don't know like the the show that we're doing this week is certainly oh man it's uh it's an in-depth show but it's good knowledge that I think is highly useful and something I probably would have put off getting deep into by myself. Right. So, this this helps me and forces me to go deep into it even before we do the show because I got to kind of have a little bit of an idea what the heck I'm talking about. [music] So, the deep diving and research is on all levels.

Bitcoin $64,532 up 4% in the last 7 days. It's like we're seeing a a little pullback today, but more than anything today is more just flat. Ethereum $1,914 back to that $1,900 number. I always say like when I bought a little bit of Ethereum, it was around that $1,900 number. Pretty interesting stuff. We are back there. So, I was hoping to scoop up some a little lower and I might at some point if we have some more pullbacks. I'd love to scoop some Ethereum around like, you know, 1,600 bucks like bottom of the bare market stuff, but we might already have the bottom of the bare market, right? If that inverted head and shoulder on the 4 hour that I keep showing at the beginning of every stream, hopefully you can see it, that could be the bottom reversal

pattern on the larger time frame because obviously you can still see it on the daily even though I show it on the 4 hour, right? And so if that is the head is going to be a deeper the head of the head and shoulder is going to be lower than the shoulders. So that might be the bottom. We're going to have to see. What's up? So, if you're coming on in, smash that like button. If you if you actually want those crypto bags to pump, smash that like button and educate yourself. Raise that crypto IQ. We're just kicking off the stream here. BNB $579, XRP 111. We're going to go through this quickly. Salana $76.98. Hyperlid $6655. Dogecoin uh between seven and seven and a half cents is where it's been hanging out. Zcash $568 up 22%. Zcash doing

a little bit of damage here in the market. That's good stuff to the upside. 22%. XLM 18 and a high 18 cents almost 19. Chain Link $8.51 with a almost 12% recovery. Um Monero XMR $328. Canton network 13 cents high 13 cents almost 14 Cardono 16 and a half cents Telegram or Toncoin I don't know what we're going to do it's like the X Twitter thing you know like when at what point do I know to just leave Toncoin alone and never say it again $158 uh DXE $36.98 basically 37 bucks DXE up 28% is DXE going to be very similar to Hyperliquid in the way that it moves and attracts liquidity into its market cap. [music] USDG, if you don't know, that is the stable coin over on Robin Hood. You can see the little feather in the

icon. At least that's what that's supposed to be. So, know your stable coins. You don't need to know all your stable coins. There's so many versions, but just the top ones, you know, USDG, RLUSD, uh, USDC, and USDT, and the players that are behind them. That is important really. Those four are the only ones that are really worth knowing in my opinion. Maybe you live somewhere and something else is worth it. Uh, Blues Guy says, "Nothing can shake my fair beliefs. It will blow people's hats off and I'll be smiling. To each their own, I guess." Uh, Blues Guy says, "Use the Flare Realtime Oracle. It's okay." Like most people, not a lot see the big deal. I mean, an or an an oracle is a big deal. Like a real-time data feed oracle that's reliable can be many

things could be built upon that. I think me and Melissa were just saying like the weather just having the weather on Flare. What is the like big value to that? Like what are we going to do with it that's going to be revolutionary? Like what what's the endgame of that? Uh SU up 62% at 75 cents. So, those purchases I made around like 68. Even though I didn't buy a lot, still they're up. That's good stuff. Add into the bag. And we're going to move on to [music] what is trending. So, funny. We do the show and I like don't stop. I go right through every segment and category relatively quickly and it's still like a two and a half hour stream. Pretty wild. What's up, Struggle Heart Prime Minister? Hey, everyone. A bit late. appreciate you being here

regardless. Thank you very much. Smash that like button for me. Pudgy Penguins Cash Cap. Cash Cat actually down. Uh again, I think it was about 160 million yesterday and now it's 106 million. So, it's down a good bit and hopefully that liquidity is going to flow through some other meme coins and things like that, especially in the Robin Hood ecosystem that we've been speculating on, me and Prime Minister, Onondo, Ethereum, the Black Bull, Anthem, that that was the one that was really pumping hard. And I mean, I thought Black Bull pumped hard. Cash Cat made it look like Child's Play with those like60 million% gains. Insane. uh Canton Network, Lighter, Aikido, Bitcoin, Hyperlquid, Solstice, XRP, Pi Network, Kite, and Celestia. So, what's here that we really want to talk about? Let's look at this Aikido because it got a

big pump today. I've touched on it before, but it has been higher. That's that's good to know. Doesn't mean I remember it. We we touched on it a few times. AI applications and a Binance wallet ido going to listen in the background doing some work. Okay, welcome in. Welcome in says bro it's not about whether it's about adoption of flare real time oracle. Okay, that's what we were asking. We were asking what is the caveat here and now we know it's the real time oracle. I mean, I talk all the time about agentic networks and all kinds of different things. How important real time good reliable data is for projects, AI agents, any kind of AI, anything really, any agentic network. Uh, pretty much real- time data feed is a big deal. As long as it can be trusted,

is accurate, people can build on it. So, I hear you. That's definitely good. Um, I think the Robin Hood eco can be tricky, volatile, unsure, unsafe. Play safe, guys. Yeah, absolutely. We don't uh we don't get in too deep there. Camsta says, "Hey, welcome in, Cam. Welcome in. Good to see you all my undergrounders." Uh, Unite. 16.4 million in market cap here for Aikido. This thing pumped today. On the max chart, it doesn't look as amazing, but it's a pretty decent pump. August 20, 2025. Let's go to Oh, wow. Look at this. I haven't seen this yet. You can compare. This is basically integrating uh the coin perspective, the idea of the coin perspective into Coin Gecko. That's what I That's what I'm getting there because you can compare. Now, that used to be where I switched between market

cap and stuff. What am I doing? All right. Right. So, let's drop into like uh the 24 hour because that's where this big pump is. So, we started at 0.0018. And that's not really what's important when those numbers are so small. [music] The market cap, that's what's important here. So, a market cap of about 4.3 million. First leg took you to about 15.1 million. Second leg of the pump took you to about 19.9. So, call it 20 million. So, from 4 million to 20 million, this thing pumped hard. That's pretty cool. A BNB smart contract, Aikido.f fun, if I remember, it was like little games and stuff, right? Yeah. Okay. See, I'm not wrong. 1K Doge earned, 200 USD earned. So, are they trying to tell us that there's some value here? That Defi Friday coming up. If you

can earn some Doge, I'd love to earn some Doge. Now, how exactly you earn, I don't really know. Five or 6.5 million bonk earned 300k AK. So, you can play and earn crypto on these. I played some of these before messing around. Let's open one of these. Log in with that Rabby wallet. Now we got the Rabby wallet on deck. So here's a reward. You need more AK points to start. Earn points by buying a node or checking in daily. Okay. Well, that's inconvenient for somebody who's just hopping on one free trial left. X42 up. So, there's 12 AI models. I believe that we used this one time to like make our own little DeFi game. It was very very very simple. Okay. One free trial left. So you can [music] make you can make your own game. Huh.

Well, you come in and then you can't even play anything. That's kind of lame, I think. Play drop just says play to earn and you click it, it takes you back to explore. This thing got a big pump today. I'm just trying to take a minute to figure out why the heck it had such a big pump today. Okay, a new wave of games just came through. I just see that there is some earning here. So then I'm wondering how do you get to play and how do I earn because as you know as we deep dive a lot of DeFi games actually earning anything of any value is kind of difficult. A lot of games don't actually have or give any value. Anyways, I'll come back to that and we'll figure it out. I don't want to waste

too much time with that right now. A lot of stuff to go over, right? So, what else is worth looking at here? Solstice, if you don't know, I'll touch on that for a second because I haven't brought it up in a little bit and it's still trending. Yield strategies are typically reserved for institutions with significant capital requirements. Solstice is bringing these strategies onchain, accessible to anyone from a dollar, meanwhile making them composable within Salana's booming ecosystem. a great description. It's very straight to the point here. So, we went over what's trending on Coin Gecko. Let's hop over to Crypto Rank. That fear and greed index still at 25. Still like just right barely on the line between extreme fear and regular fear. If you don't know your fear and greed index, it's it's definitely a good indicator. It's been

historically very helpful for a long time. There's not a lot of things you could really really count on over many, many years. Fear and greed index has been good to me. And so, I'm glad to see us kind of getting out of extreme fear, but we got to hold the line here and have a good day tomorrow. Otherwise, you'll be back into extreme fear. I like to just keep the number in the back of my head when I think about market when I think about market sentiment, right? to make [music] this a top 20, not just a t top 10. What do I usually say when we get here? Most new projects and and companies I guess that you have coming out right now are very much geared towards institutions. That should tell you something. The institutional player is

not only coming, he's here and people are building to support that and they know that's where the big big money is. So, let's talk about it. Velocity or Vevel City. I guess it's uh I guess it's I guess it's Velocity. I don't know. I'm gonna go with Velocity is an enterprise financial platform. So enterprise financial platform. Uh that pretty much means big money unifying crossber payments and treasury management through real-time stable coin infrastructure. I have my speculations about some of these products because like Swift Swift came out and said, "Hey, you know, I know you guys think we're going to use XRP and XLM, but like really, we're going to build our own thing." So, I'm wondering if some of these products are finally hitting the surface and it's what Swift has been building for themselves. Now, that's purely

speculation. And I I hold XLM and XRP, so I'm not trying to take anything away from those narratives, but I don't marry a narrative either. I'm open to information. To me, that's what makes you smart. You take in new information, you see new things, move time moves on and you adjust your strategies and adjust what you believe and expectations. I think that's a sign of intelligence. You believe what you want to believe. But tier ones like Dragonfly and Coinbase. So Coinbase Ventures is behind this project. Doesn't necessarily mean everything to see Coinbase or a name that you know because they buy plenty of things that don't necessarily play out, but the ones that do they make bank on. So they're okay with the ones that don't. Uh, and Velocity is 38 million raised. They are in a funding round.

We won't spend too much time on it. We did go over it yesterday. Packed Labs. Make sure I'm up to date here. Uh, so Underground, how do you like the Rabby wallet? I love mines. So, I downloaded it recently. I haven't got to use it a lot. Um, I used it with the Kindra game that we found on Virtual that you found on Virtuals. Let me make sure you get your credit. and that I've been playing and uh I don't know, it just seems like a wallet to me so far, but I guess the more I use it, the more different places I use it, the more I'll find the details that I like about it. So, it's a little little soon to say I love that my Bit Frost wallet I love that in my Bit Frost wallet.

Yeah, I mean I kind of like a wallet for whatever ecosystem it gives me access to. The Rabby wallet does seem like it's a lot like a MetaMask where I can have access to a lot of different places. So, if it's like a more sophisticated MetaMask, but you got to remember I've been using MetaMask for years and years and years and years and I've been using Rabby wallet for three days, so I got to see exactly how integrated with everything it is. But I think I'm going to like it. Packed Labs has raised $7 million. Blockchains Ventures, Lasagna, and US. So, Tether is probably the most notable [music] backer here. Their payments and lending. Uh, Packed Lab is an onchain credit and RWA protocol providing stable coin infrastructure for assetbased lending uh, venture debt like venture capitalist debt and

payroll payments like we talk about with Zebec Network. Uh, they have a big payroll thing built into them. One thing is why do we go over these coins? Because a lot of times these coins come out and they are heavily trending. Right now we go through waves, right? Where like some will be very heavily memecoin new coins coming out, some will be very heavily uh AI agents, you know, stuff like that or privacy coins. Right now we have been and have been seeing for a while. So think about your timing. Timing is everything in my opinion. at the bottom of the bare market. You're seeing tons of products being built for institutions because I believe institutions are here and they're loading up and they're buying for the future when things are just at such a great price because they're

smart money, not retail money, right? Not dumb money. So, keep that in mind. [music] But my point here is that this is how if you ever see coins pump and you're like, man, I would have loved to bought that when it was 95% cheaper than it is right now. Well, that's that's how that happens. You buy it when nobody really knows about it. That's underground. That's an underground crypto. This is underground crypto. So, you get the point, right? So, we have Cyclops. Their their logo here really reminds me of Coinbase, although it's obviously an O and has like the I in the middle for a Cyclops, right? Cyclopses are what? Big. They're giants. So, I get the marketing here. Again, Coinbase Ventures, the only tier one. Prime Minister says, "Rebi is much better than MetaMask for compatibility with everything

except Salana virtual machine." Prime Minister says, "Honestly, UG, I recommend you ditch MetaMask like most in crypto already have." The Metam mask that you guys see me use a lot. That's just a burner wallet, right, that I use for interacting with things on the stream. I don't really use uh MetaMask all that much in my day-to-day regular life, right? Yep. Smooth, easy interface. Glove Rabby. Yeah, I'm just beginning to use it. And hey, I don't really I don't really feel limited. I use what I want to use and that's kind of the natural eb and flow of product, right? If Rabby is really better, I'll just naturally use it all the time and I won't even think about it. You know what I'm saying? I won't even think about it. If it has the user ability and it's smoother

and it's better, I'll just naturally gravitate. And again, the Metamas that I use a lot of times, it's just a burner wallet, right? Uh 28 million raised. Even though I have a little bit on that wallet now, nothing crazy, but I probably should move it elsewhere. Uh, Cyclops is an infrastructure platform designed for payment companies and financial institutions. So, it's again, none of this stuff is hidden. It is directly telling you infrastructure platform designed for payment companies and financial institutions. There's no secret here. This stuff is built for institutions. They've raised $28 million. That's money to, you know, market themselves, [music] position themselves, hire developers. They they got what they need. To me, once you get over 20, 30 million kind of thing, like you're locked in. It doesn't mean you're going to succeed, but you got the money,

too, if you know what you're doing. Um, XPR Network is a really interesting coin. It's actually been around 6.2 years. I'm surprised I haven't heard more about it, but it's been trending quite a bit lately, so I think that's really interesting. Sovereign. Yeah, me too. Love it. Uh, Prime Minister says, "Yeah, I hear you, bro. Appreciate that." Uh, let's see. Sovereign, 7.4 million raised. Sovereign is an institutional platform building a modular high-performance SDK to simplify the deployment of zero knowledge roll-ups. Again, zero knowledge kind of the integration of tech from optimistic roll-ups. I won't get deep into that because I I do talk about that stuff, right? and it's not really exactly where we're going today. So, not a a huge money raise just yet. Town Square, that one could be interesting right there. They're in a token sales.

Notice they tell you the difference between funding rounds and token sales. [music] One thing I like about Coin Gecko, because I always talk about each platform, what I like about them. Coin Gecko is very much geared towards you know information like venture capitalists involved like funding round you see token sale tokens that are not out like you really don't get this wealth of information this specific investor information very much on like coin market gap coin gecko that's why we use them it's very interesting so we're going to come back looking at our new coins but I really want to do the introduction of the show Here we always start with what is the problem because that's where you want to start. You want to start right at the root, right at the problem if you want to really raise

that crypto IQ. [clears throat] Prime Minister says what a coincidence. It's 10year anniversary today of MetaMask. They given some sort of event. Oh, are they? [clears throat] I didn't know that. What are they given? Bit frost makes me think of snow in wintertime. Yeah, that's what I always think of with Bit Frost. 10year anniversary of MetaMask, huh? They have been in the game a long time. I wonder how long Rabbi's been around because it's one that I had very rarely ever heard of, but for the longest time, MetaMask really covered everything I needed. Plus, I had all kinds of other wallets, right? Salana, Soulflare, you know, Jupiter wallets, Ronin wallets that it's like I I didn't really need any other wallets until we hit that series where we were doing uh DeFi Friday and it even bled into Saturday

and we were trying to figure out the Starknet network and that's when everybody started bringing up Rabby to me. The beautiful thing is I come on stream, the wealth is is the focus and things that I bring, but the wealth is more the people who are on streams who help us learn new things cuz they're into new things. And I always hope that those people [music] come into the community, the free Discord, and just begin to share that knowledge freely so that we can build it up. It's coming, guys. We are bottom of the bare market vibes. something to do with an onchain persona. Doesn't seem like much. Yeah, it doesn't seem like much value. It's like, hey, here's a free thing, but like the free thing is not really worth anything. So, here's the problem. Regulators were built

to regulate institutions. And I'll say that again because it really sets up the theme of the night. I hope you're ready to raise that crypto IQ because, you know, hey, everybody's here for something different, but it's a big part of why I'm here doing this show right now. regulators, the framework, everything about them. For the longest historical time, they've been here to regulate the institutions and the banks. I got that honey honey tea, so hopefully my voice doesn't get messed up. And I said yesterday how, you know, the Great Depression very much had a lot to do with banks and institutions and people being able to make their own markets and profit from those markets. After the Great Depression, they decided, hey, it's probably not a good idea. I think that's what caused this big bubble and it to

pop and hurt everybody. So then they made it so institutions were not going to be able to make their own markets and profit. They can make markets, but they can't profit off of them, right? And so it took away a lot of the shenanigans going on in those markets. Then fast forward to today and although that framework is still in place and they can't really make markets or profit off of it, the new legislation coming down through the Clarity Act and stuff is basically going to allow them again to make markets and profit off them when it comes to altcoins. So I [music] would not be surprised if altcoins have real altcoin seasons again because the banks and everybody are going to be highly profitable on those markets. Just a little bit of word to the wise that you're

not going to hear everywhere. Let's see. It launched July 21st, 2021. Rabby, I assume you're saying told the God gang to come through here. Hey, hopefully they show up. I've been still loving some Godle. Show that off for a second. Of course. Appreciate you doing that, Prime Minister. Now you're a mod. [laughter] That's uh very helpful. Let's see. Do I really not have enough? I had stopped mining earlier cuz it was at like 9% and there was both of these had been hit, the Salana and the Gottle. I guess I need to get some money over over here. And Rush Rush hit a bunch of smalls, right? Look at this. Babble hit it twice for, you know, 600. Yeah, he made like 640. That That's nice. Of course, this is the one that I went in on and you

could see the difference. Look, this one went to eight. This one went to one, five, three, and the one that I got involved with went to 25, which was good because otherwise I would have just lost a bunch of money on shovels. So, that was a blessing. But I got into a couple other real small and I didn't make my money back on shovels. So, I don't know if I want to be going into every single one of those. Chris Goss, what's up? What's up? It would be cool if some of the God gang came over and uh chatted and get to know some of those people over there, right? All right, let's get back to what we were doing. We were just about to kick this off. So regulators were built to regulate institutions, not decentralized frameworks. That's

where things get really wishy-washy. [music] Imagine that regulators discover illegal activity at a traditional bank, right? There is a licensed institution, a management team, customer records, servers, corporate accounts, uh identifiable executives, authorities can be issued subpoenas, [music] suspend a license, freeze accounts, and bring an enforcement action against the company. Now, replace that bank with a basic decentralized exchange. A liquidity pool sits inside a smart contract. The user signs a transaction from a self-custodial wallet. A mathematical formula calculates the trade. Validators record the result. [music] No employee approves the transaction. And the contract may continue operating regardless of what other of what happens to the original development company. A regulator cannot send a cease and desist letter to an equation, which is the whole point, by the way. That's why they built it that way. it wasn't an accident. [music]

That creates two extreme answers. One side says DeFi is unstoppable and there's nothing to be regulated. And the other says anything performing an exchange-like function should simply be treated as an exchange. And neither answer fully understands the system that was built already. Many supposedly decentralized applications still have an official website, a [music] concentrated development team, a upgradable contract. So again, just not to get off topic, right? Because I looked at the chat, I messed myself up. Many supposedly decentralized application. So people who call themselves a decentralized application, they still have official websites, [music] concentrated development teams, upgradable contracts, multi- signature wallets, a fee switch, a government, a governance treasury, and a small group of delegates and identifiable people collecting revenue. At the same time, forcing complete autonomous software into regulation written for custodial intermediaries may be technically impossible. So

you see this this we're separating here. We're separating this first group of things that can be gone after that can be touched by regulators and then you have the actual autonomous software that regulators can't really do anything about. So the real problem is that the word DeFi is being used to describe everything from a mutable autonomous code to a normal financial company operating through a smart contract. We're putting way too much inside one category or one word that it loses the value of understanding the nuance of what is actually going on. That's why you got to raise that crypto IQ. Prime Minister says code is always law. Charles would be proud. [music] Uh stop looking for the company and start mapping control. So this is what we talked about a lot yesterday. You got to separate even when it

comes to commodities and securities and all of that stuff. If you got to separate what is the [music] coin and the network and what is the action that they're doing and when were they doing it. It's very nuanced, right? Yesterday's show was so good. I I enjoyed it and learned a lot. The better regulatory question is not does this project call itself DeFi, right? That's not what the regulators even looking for. The better questions are who can move the asset, who can upgrade or pause that contract, who determines which tokens are listed, who selects the default trading route, who controls the website, who controls the fees, also who controls the treasury, the transactions, can they be censored, and who makes the promises to the users? The promises made to a user when selling a token is [music] a big

part of determining if it's a security or not. Once we map those powers, the structure becomes more clear. A genuinely neutral smart contract may be difficult to regulate directly, but the official front end could still be operated by a business. [music] The protocol may be immutable, but a stable coin used inside could still be frozen. The DAO may have thousands of token holders, but five delegates might control most of the votes. Whales we would call those, right? The application may be non-custodial while its operations still select certain routes promoting investment and collect transactionbased compensation aka a fee. This movement towards regulating control instead of merely regulating code can be seen in the SEC's 2026 interface position. That's what we started with in the what you may not know and the Senate pending clarity framework that we're still waiting on

to go through the process to actually be law. It's suggested at this point, but it's not law. So older enforcement precedents have not disappeared and are still relevant in ways that you would not think. I mean look at how much in the United States the agricultural department is everything to do with a lot of all your derivatives and stuff because the original derivatives were all in agricultural markets. They were corn, they were oat, they were wheat. So they've been a part of that for a long time and that is why the agricultural department again agricultural is farming has a lot to do with shaping the crypto legislation landslate because they've been in charge of things like derivatives and things for a long time. It's very interesting. If you're not in America, you're probably like, why would that even be

a thing? But that's the way that the law works is that it's very much built upon the way things have always worked before. So somebody would have to come in and change it which they are talking about taking certain uh you know powers from the SEC and moving that to the CFTC and who really should be a part of crypto regulation. In the OK DAO or OK DAO case, a federal court entered a default judgment holding that the DAO could qualify as a person under the commodity exchange act. So in their regulation system framework, the DAO would be its own person. Kind of strange, but when you have uh you know AI entities and things like that, maybe it's not so strange. That does not mean every DAO or every governance voter automatically has liability. It does demonstrate that

placing an existing business behind a token does not guarantee illegal immunability. And on the surface, a lot of people definitely felt like, oh, it's DeFi. They're never going to come for us. Yeah. Yeah. They are uh payoff code can survive while its market is restricted. So even when the regulator and legislator come down hard on crypto things, the code can still live on. And a lot of times, especially in America, what you see is it just be shunned from like American exchanges and American markets, but the code is out there, the network is working, the thing is still working. Uh, and people from other places can still use it. If you can get access, you know, things like a VPN, stuff like that, then you still can use it [music] even if it's illegal. But we've seen this with

things like tornado cash as a good example. This gives us more accurate answers. Governments may not always be able to erase an immutable smart contract from a public blockchain, but they may not really even need to. This is the sauce. They can regulate official interfaces, companies on and off ramps, right? Developers who remains operators, governance participating exercise meaningful control, right? So they can get into the govern govern governance of a project, the actual people in business and shake that up. Stable coin issuers, centralized exchanges, app stores, domain providers, and other access points. Again, the key here is access points. So they might not need to really regulate the actual smart contract because it's immutable. They just make sure it's impossible to get and impossible to get your money out of, right? because you might be in the decentralized land

and you might have made a ton of money off of something and it might have I don't know maybe you ran it through tornado cash way back in the day before that was a problem but on chain they can see that well when you go to move it in America American banks or even other places they may not accept that uh transaction the exchange the actual swap from whatever BTC or whatever into US dollar They might just say, "No, we're not going to take that. That's not We can't use that. It's touch tornado cash and we don't touch anything that touches tornado." And now you just have like this money that's very difficult to use, right? Which brings a whole host of other problems that we're not going to get into right now. Like what if somebody sent you

that money? Does it infect like say you had $1,000 of BTC and somebody sent you $1 and that that BTC had somehow been through tornado cash because of the person who paid you the money. uh does that infect the other dollars or is it just that $1, how good it they are at telling the difference? But that's not what we're really here to talk about. That'll be much later. They can regulate official interfaces, companies, developers, right? It's the access points that they can go after and that's very much what they've done. So, under the enacted Genius Act, permitted payment, stable coin issuers must possess the technological ability to comply with lawful orders requiring specific stable coins to be frozen, seized, burned, or prevented from moving. At this point, if they freeze it and it sits forever, they should just

burn it because what the heck is even the point of it just sitting around frozen all the time. And that means immutable D5 pools can continue running while one of the most important assets remaining controllable at the issuers's layer. The genius act is very much the getting control of the stable coins. Tornado cash. All right, we're caught up on the chat. So to cash tornado cash demonstrates another distinction. Treasury removed the economic sanctions against Tornado Cash itself in March 2025. Later that year, a co-founder was convicted of conspiring to operate an unllicensed money transmitting business. The government's case emphasized operating infrastructure, promoting the service and profiting from it. So, a big problem is that he profited from it. and the knowledge about the criminal uh proceeds, not merely publishing code. So I guess they saying, "Hey, they knew criminal

activity was there and you knew that and you still kept making money off of it." The contract, the operator, the front end, the assets, and the user are legally different targets, right? [music] And not only are all these things different legal targets, they're actually targeted by different legal entities. What is the payoff here? DeFi does not necessarily eliminate regulation at all. It breaks down one centralized regulatory target into several different separate layers. Let's hop back over here and see what the heck town square is about. Right. Town. It's interesting. I remember when these few coins were being talked about. I guess it's finally an ICO. I thought it was farther along than this. Townsquare is a cross-chain DeFi protocol offering leveraged yield strategies and lending for onchain assets. All right. 16.2 million raised out of that round. Really 17

and a half basically million raised. That's a decent amount of money. who are so funny on this project I have to have a premium subscription even [music] though they they clearly tell you you know OKX ventures tier one top top uh you know venture capitalist there [music] and what else is it going to tell us here defi yield aggregator lending rwas the launchpad is echo let's go to their website and again yield markets redefined who would be very into yield markets. Why are we seeing a lot of yield markets and have [music] financial and yield markets over and over and over institutions yield markets work well when pe when players come in and they have a lot of money. So this still very much falls under the whole idea of institutions and services being built. The framework and infrastructure

for institutions just continuously being built is a to me just such a bullish sign that I think a lot of people are missing here. So this is town square. You can connect your wallets. See what kind of wallets they take. MetaMask, Ronin, Rabby, and they take 70 other wallets or you can log in with an email. I would not want to try to operate web 3 from an email. That would be very weird. This is all about your supply. I want to see the regular dashboard. I want to see TVL across the entire network here. Doesn't really say yet. Yield vaults. It's very tailored to be your dashboard. Oh, here we are. Right at the top. 63.7 million in total value locked. uh total borrowing 1.5 million. [music] Right. Speaking of lending in stuff, I saw that Morpho is

now integrated with Coinbase and you can get like over 6% yield lending out your USDC or whatever on uh Coinbase. So, that's interesting where like their normal USDC yield's only like 4% or something. 3.8% or something like that. This is Town Square. I think you get the idea. It's a financial product lending yield. who's going to use it? Big institutions. And [music] the difference is though, not to take away from the fact that it does have access. So the more traditional yield things that the institutions and stuff have always used, they didn't have access for the little guy. Town Square, you can connect your MetaMask or Rabby wallet, whatever, and you could get right in there. So it is a move in the right direction for retail. Then we have range. And I talked about range before. Security and

risk platform for blockchain in roll-ups. 11 million raised. See if it'll show us. Yeah. Okay. So, we're allowed to know these. So, here's your tier ones. Robot Ventures, uh, [music] Fimbushi Capital, Bitscale Capital, Maven 11 Capital. Interesting. I believe it's involved with Manad. It must be Town uh, Town. I already forgot what it's called. Town Square. it because it had a lot of Manad products on there. I do apologize if I overlooked that. I'll pull that back up real fast just in case we want to look at that because I noticed Manad Rap Manad was just top of the list here and it had the best uh rate here, right? Towns Square points is a big part of your APY. So, it's like your regular APY is only like 3.7, but you get 11.2% 2% or 11% of the

actual town square points. The question really kind of becomes what the heck are the points worth and do we really care about the points, right? So yeah, this definitely has a lot to do with Manad and if we back out of it. Oh, I guess we back out of it some more. It just says DeFi category. It doesn't actually give a specific chain here. says, "I'm talking about town square." No, I don't use it. I go through Atlantis. Okay. Prime Minister says, "Ofacc has a list of blacklisted addresses plus tainted coins which have been seized. The only way you get bad coins is if you use a mixer, which are not the same as privacy protocol." Yeah, a mixer. I I definitely knew that about Tornado Cash was a mixer. The token is just an ERC20 fungeable asset. Okay.

See, I've never really used any of those things. I never had any reason to. But look at Prime Minister coming in giving us the sauce. I appreciate you on that. Imperator, which I couldn't figure. I just yesterday my brain did not want to do that. [music] You ever just run into a word and it's just like deer in the headlights for whatever reason it's just not working out. So emperator.co is a professional blockchain infrastructure provider operating enterprisegrade validator node for proofofstake networks. And I'm sure I haven't said this. I'm operating on like no sleep. Uh had a lot of things to do. Had to get up early. Got barely any sleep. It's a lot of fun. But we're making it happen. And I'm not going to make the stream about that. That's my problem. uh category is infrastructure, proof

of stake, delegated proof of stake. I just noticed that um I make a lot more like errors when I'm reading when I'm really tired, which I think is acceptable. Hopefully everybody can accept that. When you stream six days a week for [music] multiple hours, two and a half. We did a 4 hour stream not that long ago, over four hour stream. Uh yeah, you're going to have an off day where you are exhausted. Gossis. I do not own enough Gossis. That's one thing I know. I know I don't own enough. Um I don't know if it is worth owning other than they've been around for 9.2 years and institutions and financial, you know, entities, they like coins that have been around for a long time, like over five, six, seven, eight years because they feel a lot safer with

them. And again, Ganosis tokconomics is fire. Will money run into that? I don't know, but if it does, the price will go up dramatically and it can happen so fast. It's pretty awesome. So, Prime Minister, you said Tornado Cash was a mixer, but the token is just an ERC20 fungeable asset. So, when you put something like Bitcoin [music] in, you know, the mixer, quote unquote, Tornado Cash, it would just kick you out money in a different token in an ERC20 token. Again, I've only really scratched the surface with a lot of that stuff. I've never really heavily studied it. The innovation game. And then, of course, we have strategy. We want to touch on strategy here. This is Michael Sailor's group. Again, like many of you, I probably like many of you, I also didn't know, or maybe you

did know. I don't know why I can't say that the way I want to, but apparently strategy's been in the software industry for more than 35 years. We even we mostly know it for Michael Sailor using the treasury to buy Bitcoin and it's you know a big corporate holder of of Bitcoin which is not super common especially when he started doing that. So that's really interesting. The innovation game how long has that been around? Let's check that out. 1.9 years. So long enough that we should know if they're going to be successful. TIG is a network of algorithmic breakthroughs. We did look at this yesterday. It's only been as high as 61 million. It's really not that bad. Let's go to alltime chart here. >> Looks like something around July 14th, 2026. That doesn't make sense because it says

it's been around. I don't like these charts. This is like a basic chart that when they don't have like any real charts. It's DII. probably go to their website here. This is TIG Foundation. Protect the future of algorithms. Algorithms underpin the modern world. Those who control algorithmic development shape the future economy. Right today, there is an unprecedented risk that major tech corporations will consolidate this power. I think we're past the risk. I think we're there. Uh scaling innovation behind closed walls and dictating who has access to it. This is a failure of incentives. All right, so they've identified the problem like a good business should. The innovation game is an economic protocol that removes barriers to monetizing algorithms, forging an open decentralized future for all. It's really cool. I can think of some people who are not going to

be happy with that and are going to push back. Powering the modern economy, the threats of privatization, the missing [music] economic framework. Our answer is the innovation game. TIG creates a new economic framework for algorithmic development. One that aligns incentives, rewards, and contribution and keeps it open. This is really interesting. TIG, it's another one I got to write down. I might want to do a video on. This week has been packed with a million things to do, and I haven't got to make many videos. Although I did get my video about Robin Hood out and then of course all the momentum died out of Robin Hoods. It's like dang all that time I took to make that just to get the information out. But I'm going to start making videos like I used to and we'll see how they

perform because I used to be able to get through those uh videos really fast because I didn't worry too much about all the editing and all of that kind of stuff. [music] I kind of did that with the Robin Hood one, but I got to the point where I went heavy on editing. It was taking [music] me four, five, six hours to edit a video and it just became so much that it was like not really worth it and my channel didn't have the traction. So sometimes you got to you got to see if you're focusing on what matters. I'm just talking out loud here. Let's look at the top fear top fear. Let's look at the fear and greed index. I am tired, guys. What the heck am I even saying? Let's look at the top gainers top

losers over here on block works. Got to refresh it. These are not the right projects here. So ono gaining 13.6% 6% ecash this ZEC up 13% ETH thigh Lido Dow so look at this a lot of Ethereum financial stuff getting a little bit of a pump as we saw Ethereum pump back to 1900 Velvet Dexi Lighter uh is is Daxi going to be a good project to own as we come into uh the bull run I don't know it's going to be very interesting and let's get back to those talking points those main talking points let's go deeper into this topic So it was so it batches everyone's transactions into a bundle then outputs tokens into a different address that you use, right? Most exchanges are extremely strict on mixers. They always warn you never to send coins to

them from mixers because you may get dirty coins. Makes sense to me. And they don't want to be involved with any of the liability of anything. So they're going to tell you not to use it. DeFi is not one technical property, right? We're oversimplifying things with terms and we want to get away from that if you really want to raise that crypto IQ and think long term. Why do I go so deep into a lot of this stuff? Because I'm not here for what's going to happen in the next four years. I mean, I'm here for it. I don't have huge positions, but I'm positioned. going to try to be as transparent as absolutely possible because I think that that builds trust amongst the community. But I'm looking at this information how it's going to, you know, improve my

life 20 years from now. So you start small, you start with these kind of things and we continue to compound. So DeFi is not one technical property, right? Let's break it down. Four terms are regularly mixed together. non-custodial, permissionless, immutable, and decentralized. I love this because this is really important because I think like even you're a little bit more savvy web 3 user who's maybe not very deep probably couldn't really tell you the difference between like immutable and permissionless. So non-custodial, the user controls the keys. Pretty simple. There's no custodian like an exchange. When you have money on an exchange, they're considered the custodian of of the money, of your money, which is funny because they're the custodian of your money. But when they go bankrupt, it was never your money. It was always their money. So, I don't

know how they're a custodian. That's neither here nor there at this topic, but just know that is a is a thing. So, non-custodial means basically the user is the one self-custodying is another way to put it, right? permissionless. A user does not need the approval to call the contract to access the contract, right? It's permissionless. There's no third party that has to give permission. Immutable, no administrator can change the deployed code. Immutable means the code is law and that law can't be changed by anybody. That's what immutable is. decentralized meaningful control or centralized control. Meaningful control is distributed rather than concentrated in one point. You go to your bank who you banked with, I don't know, since you were 18 years old and maybe you're 60 now. Uh all of the power of the decisions, your account, all of

that stuff, all that is centralized to the bank and their management team, right? decentralized there is no meaningful control and the code is usually immutable and code is law that's what makes things decentralized a protocol can satisfy one condition without satisfying all the other conditions so a proto a protocol could be permissionless but not non-custo custodial you see what they're saying like any protocol could be one of these things or multiple of these things without being all four of these things and that's where people get really confused an application might be non-custodial but also upgradeable So an application that you're using might be non-custodial meaning you're the user and you have the keys but it might be upgradable meaning it's not immutable. So another way to say this is the opposite of immutable meaning immutable means not changeable is

the opposite is being changeable having the ability to change it. It's what we call an upgradable contract a lot of the time and you'll see it around smart contracts. So a smart contract is usually completely immutable and unchangeable or it's the opposite. It's upgradable and somebody has the ability to change it. So the application you're using might be non-custodial but also upgradable. It might be permissionless while relying on a company controlled front end. It might have token voting while a centralized or concentrated group controls enough delegated votes to determine every outcome. So at that point you kind of have the illusion of a DAO in governance even though a certain small group of people concentrate the power and even in a decentralized world they pretty much say what goes and what doesn't. Bonk might have needed that because they

got bonked on the head for about $20 million and taken over. And I have no idea what's going to happen with that. Let's see. Thank you Melissa for the links and the call to smash that like button. Please smash that like button and subscribe. Join the free Discord. It is linked in the bottom if you love raising that crypto IQ. Torn token was just a governance token says prime minister. Okay. Yeah, they'll freeze and seize any dirty coin with no mercy. I'm sure. And uh that's why you should stay out of fraudulent groups because you don't want nothing to do with a dirty coin. So calling something DeFi does not answer the regulatory question. And remember this whole series has a lot to do with regulation. The actual distribution of power is what matters in the regulatory question. So

think power map. Who has the abilities and control? Regulators see a stack, not just a smart contract, right? They see a DeFi product normally contains several layers. A blockchain layer which are validators and sequencers that record transaction. A protocol layer that would be the smart contract and what it performs the swaps, loans, liquidations, collateral management, that kind of thing. Asset layer, right, where the assets live, the stable coins, the wrap tokens, the bridge, the token issuer supply to the asset. Data layer, the oracles that deliver prices and other information. The access layer, how you get access to everything. Websites, wallets, API, RPC providers, and applications prepare transactions. governance layer which is developers, multi- signature signs, delegates, token holders and foundations make decisions. And then of course the economic layer which would be the company, the treasury and the fee

recipient capturing the value in your economy. That is seven different layers that your regulator is looking at. as why lawsuits and things can become heavily um complicated and also why we in in crypto have a lot of times just shaking our fist at the regulator and be like get out of here. But almost none of us understood or understand all the different nuances to what they're even looking at and why they're saying what they're saying. Don't let that be lost on you. That doesn't mean I approve of of what's been going on with Gary Gensler and stuff. I'm not on team Gary. All right. And I'm glad he's out of there. One layer can be decentralized while another remains highly controlled. Regulators will usually look for the layer performing a regulated function or exercising meaningful discretion. Discretion why I

keep mixing that word. Regulation follows the activity, right? There is no single DeFi law covering everything. Different activities can trigger different regulatory systems. Trading a crypto asset security raises security law questions. Offering derivatives or leveraged retail commodity transactions can involve the CFTC. Operating a money transmission business can involve Fininsson or state licensing. This is kind of a recap from yesterday. Sanctions apply to prohibited transaction and designated parties. That's a separate entity in the government. fraud, theft, manipulation, and false advertising still remains illegal no matter who does it, even if it's DeFi. And one thing I want to say about this fraud, theft, manipulation, false advertising is illegal and it's going to be illegal. I think there will be a day when a lot of the tech is going to catch up in a way that most people are not

counting on. and those who have performed rugps and all, they're going to have all the receipts for it and they're going to have meaningful ways to probably figure out things that you think they're never going to be able to figure out. They're going to figure them out. Just like before, you know, crime uh investigators were able to use DNA. Like, nobody thought about the DNA they left at crime scenes. It's the same idea. And then all of a sudden they had this technology where they could match and prove that you were at that crime scene and that was a problem for people doing things that were illegal. So it might be 15 20 years away but at some point you might see you know a lot of people held accountable for the things that they've done in crypto which

would be music to my ears. Tax obligations can exist even when no broker issues a reporting form. Right. The technology does not automatically determine jurisdiction. [music] The asset transactions control and service matter. The front end can be more legally important than the protocol. Check on this chat. Uh Prime says you have another hidden smart contract that calls to another smart contract. Okay. So the front end can be more legally important than the protocol itself. Most users never interact directly with the raw smart contract code. They visit a website or a wallet interface. That interface may recommend assets, choose uh default pools, determine transaction routes, let slippage and gas default, collect fees, rank available venues, promote expected returns, and rest and restrict particular users and locations. Those [music] decisions can move an interface away from being natural software and towards

acting more like an intermediary. The SEC's April 2026 staff position effectively offers a roadmap for reducing that intermediary role. User control, objective routing, neutral compensation, limited uh discretion and extensive disclosure. Now a DAO is not automatically a liability shield. A DAO can distribute governance but the legal outcome depends on what its participants actually do. Right? Important questions here include who is governance genuinely dispersed or is the governance genuinely dispersed? Who can submit and execute proposals? Are token votes binding? Does a multi-IG group have the final authority? Who controls the treasury? Who receives protocol revenue? Can a small group pause or upgrade the contract? Is the DAO governing a public protocol or continuing an existing business? Back to this, okay, or OK DAO. It was a warning against assuming that changing an LLC into a governance dow or governance automatically

makes it activity activity unregulatable. Right? So you can't just take what you were doing and throw you know a Dow on it and then get away with whatever you want because that case ended in a default [music] judgment. It should not be treated as a complex answer for every DAO though. And what's really being said here is the way that the law works in America. These judgments, the if you will, final takeaway from a court case are going to be used to build other court cases. Some people who don't live in America maybe not don't realize that. So when a new court case comes in the same vein, they're going to reference the the judgments that have already been given and that's going to give a lot of weight to what the judge decides has already been decided. [music]

If that makes sense to you. Stable coins give regulators indirect control. DeFi depends heavily on stable coins for liquidity, collateral, settlement, and pricing. Right? So, it's the stable coins that actually give the regulators control. So, are you surprised that the genius And why it always messes up the camera, I don't [music] know. Why the mic randomly goes off, I don't know. Can anybody tell me where I was at? Is anybody locked in? Do you guys even care about this stuff? I know I do. So, I'm going over it no matter what. You can't stop me. But I would like to know the perception out there. Evening. What can I say? Today was just what I needed. Absolutely. All right. Let me skip ahead here. All right. So, code survival is very different from market access. A protocol can remain

technically available while becoming difficult for ordinary users to reach. Yeah, let me know in the chat if you can hear me. So regulators can potentially affect things like official websites and domains, app store distribution, centralized on and off ramps, regulated intermediary routing into DeFi, stable coin liquidity, corporate development teams, hosted API infrastructures, participation on resident and particular jurisdictions. Advanced users may still call contract directly, but reduced access, liquidity, development, institutional participation can dramatically change the protocols practical market. Basically putting a limit on them, even if a few people still know how to use it. Technical existence does not guarantee commercial usability. We didn't miss much. Go for Okay, cool. I didn't think so. I feel like I sometimes I'll just be talking and talking. I feel like I caught that pretty quickly. So, the likely outcome is regulation based

on control. So, here we come. We talked about a lot of things. We're going to kind of wrap wrap this up a little bit to a conclusion like you learned to write when you wrote an essay in the seventh g seventh grade. God, I can't talk today. It drives me nuts. It's cuz I'm exhausted. Um, in conclusion, so the likely outcome here is regulation based on control. The current Senate clarity proposal would examine whether someone has unilateral or practical authority to alter, censor, or control a DeFi protocol. It would protect some neutral software activity while applying tailored obligations to control protocols, frontends, and intermediaries. That approach remains contested. So they're still hashing that out, right? Senate Banking Committee Majority Material described it as regulation focused on control rather than code. So they're saying, "Hey, this is all very confusing

to us. We're going to focus our regulation on the things that we actually have the ability to to control versus making a bunch of judgments about things that they don't actually have the ability to affect. Makes sense. That actually seems like a pretty level-headed approach. While minority members argue the exemptions could leave serious anti-money moneyaundering gaps. Don't worry, they'll be back. They'll be paying attention. The bill is still moving through Congress and could change before the final vote. Of course, that can always happen. International internationally, the same tension appears. So, now we get into Europe. We're going to touch on it. The European Union's MICA framework, which I'll be honest, I don't even know what the heck that stands for, says services provided in a fully decentralized manner without an intermediary fall outside MICA or Micah. Mika, I'm just

going to call it Mika or Micah. While services performed or controlled by identical parties, identifiable parties can remain covered. Get it together. FATFS, which got to be what? European. I don't really know all the regulatory arms. I've heard of Mika enough times that I know that that's Europe. Um I don't know what the FATF is. Uh 2025 review found that jurisdiction increasingly examine whether creators, owners, or operators retain control or sufficient influence. So FAF uh TF also warned that many arguments are in decentralized and name only. So basically you launch something did you keep all the control or did you launch it and then kind of make it decentralized right the emerging global question is not simply whether DeFi is regulated or not. It's how much remaining human control is required before regulation attaches. And that is the end

of these talking points. I hope you learned something. I certainly did. And this tea with honey in it definitely mattered. It was a game changer tonight. That's for sure. Uh, how's everybody doing out there? Usually I pivot after such heavy, you know, educational, we pivot to something else. I want to know how I can earn Dogecoin by playing this game. That's that's what I want to know. When $200 in Doge Why would you just win $200? I thought you would earn like a couple here and there. If they're giving it out $200 at a time, that means like what? One person. You need more AK points to start. Okay. It's very confusing actually. Is this points like actual points or is this points like you know money? Just some money. You need to buy some AK. Uh let's see.

Choose an amount. Blah blah blah. Top up with crypto. Choose your payment. Select an amount. It's weird because this interface doesn't really do anything. thing. It's like a picture coming soon. Well, that's not helpful. So, you got to buy this AK E somewhere else. How much does it cost? How much is AK? I'm always curious about all the little nuances. So, if you're like that, then you're going to love this show. It's very cheap. Like very, very, very, very cheap. It's on B&B. Binance Smart Chain has become a little bit easier to deal with, but uh I hate the how difficult they make Binance Smart Chain to work with. It's been I have to like reassess how to uh navigate to Binance Smart Chain assets. Like every couple of months I got to like be like, "Okay, how do

you do it? What did they get rid of? What did they change?" cuz every time I turn around it where I used to get B&B, buy B&B is all of a sudden just like impossible to do, you know, and then all of a sudden you're swapping B&B to Binance Smart Chain and I just haven't touched it in a while. It's been getting easier and easier, don't get me wrong. Let's look at God for a minute. Ah, dang it. The Soul ML hit and I wasn't [music] mining. That does suck. See where do I have some money tied up here because I got some godle tip to me and I did hit like some some MLS. I I think it's probably a good idea to take a couple dollars worth of God, like five bucks, and then flip it back

to mining. What do you think? Is that a good idea? I'm not going to worry about it right now, but uh it does seem like that might be a good idea. Struggar, what's up? Thank you for always being here. And there's certain people I notice aren't here, and I wonder where they are. Just genuinely, they don't owe me nothing. Like 00o, where's 00 at? Like, feel like the number one rule is you should not eat on stream, but I'm going to do it anyway. And we tr transition into the underground hangout. No members only stream tonight. Let's mess with some chainers here. And it was another successful show. What can I say? Just keep showing up. Putting my best foot forward here for everybody. And I learned a lot. You're in control of your own life. If you learned

a lot, that's because you paid attention. Especially this series. If you didn't learn a lot, you probably weren't paying attention. I highly doubt you knew everything about, you know, commodities, securities, the CFTC, the SEC, and the way that they go about regulating and what they're really looking for as a regulator. But maybe you did. I know that I certainly did not know all of that information. Melissa says, "Great show." Thank you. I appreciate you saying that. I sure do. Uh, let's see. Let's mess with some trainers here as we roll into an hour and a half. Like hour and a half is like like almost the shortest I can make this show without just getting rid of whole segments. And we haven't even done the news. Okay. I was like, what happened? Like froze. Let's see. Let's get those

daily rewards and and liquidity is a little low. Not a lot going on. And the market's kind of flat. It really feels like a Wednesday, doesn't it? Really feels like a Wednesday, I must say. I don't know why I decided to eat this right now, this piece of chocolate, but I needed it. >> So, I went to virtuals. This is a new game that's out. I will, I'm sure, be looking at it on D5 Friday. This is pretty interesting. We'll be playing at D5 Friday. But this is Kendra. Melissa really brought it to my attention and I've been messing with it. What I like about it is that in game, first of all, it's very new, right? But in game, you can rack up gold and then you can kind of package up like 1,600 gold and then you

could put it up on the market for Kindra, the native asset. So effectively, you could earn some money, which for people who live in foreign countries could be a big deal. So, for about $5, I bought uh 33,000 Kindra. Just a $5 little little take there. I I'm up on it. I think I bought it down here at about 141k market cap. I'm up 43 cents, right? I'm not buying any Lamborghinis off of this yet, but who knows? Maybe at some point. You always got to believe that amazing things can happen. It's been as high as about 460,000 market cap. And then one of the Robin Hood alts that I own. I've been pumping pretty hard today. Kind of feeling like a support and resistance flip there. Of course, they're altcoins, so you don't you don't get too excited

about it. Doesn't mean everything. Kind of like right where it's at. So, anyways, I originally had bought this coin at about 63,000 market cap. I believe it was like right here. I could it was rather right here or right here. And this thing has run from 63,000. Uh when I got to about $140,000 market cap, I sold half of my bag. I had only bought like $10 or no, I bought like $20 worth. Pooch looks like it could be one of those ones that runs. Previous all-time high, you're right there at about, you know, 220 230,000. and it's looking like it's about to run at some point here in the near future. It did get listed on Coin Gecko, which I guess is a big deal in these in these realms. I'm still learning, but who knows? Maybe we'll

get to ride this one. So, like, think about this. You take $10, $20, doesn't really matter what amount of money, right? And you get in really undervalued. And when you go from say 40,000 to 80,000 or like I did from 63,000 to 140,000, you sell out your initial investment cuz you've doubled your money. So you get your money back and you have a free bag of assets. But here's the power of that is that you could take that $20, go do it again and go do it again and go do it again and go do it again. I guess I guess until you get rugged and that's just based off of how well you can navigate this landscape which I didn't have a lot of confidence in myself with. But Prime Minister seems to know what's going on here

and I'm following his lead. But it's been a lot of fun because you could just build these moon bags and have these moon bags. If the coin ever does anything incredible, life-changing, you turn a $100 into 10,000 or something like that, I'm sure it'll take some time to do. Not everything's going to move like hundred plus millions of dollars overnight in 24 hours like Cash Cat did, but it does happen. And especially if you give it a couple weeks or a month, it could really happen. You know, you don't know. Pooch could be at, you know, 56 7 800 to a million market cap in a matter of a week. You just don't know. So, it's very interesting. Actually looks like it's about to get a little bit of a push here. see if it just a lot of

times what it'll do if the run's kind of over, it'll just push to this previous high and then reject. And that's where we get the [music] M pattern, right? Or the cat ears or whatever. So anyways, I'm just telling you guys what the heck I've been up to, what I've been doing here. Was a fun stream. I hope everybody has a great night. I'm going to go ahead and hop off because even though I'm absolute absolutely exhausted and sleepd deprived, I still got to go do a bunch of shipping and stuff. So, I will catch you guys on the next episode. Thank you for coming underground crypto. I'm literally so tired. I can't even remember my outro. That's crazy. Um, stay underground, stay crypto, and think long term. Everybody have a great day. There's going to be days where

it's going to be, you know, but hey, I showed up. I might be tired, but I showed up. And that means more in my opinion to myself, accountability to myself. I'm not looking for no praise, but uh that means more to me for me than anything else. Still showed up, still raised my crypto IQ. Still held up my obligation. I'm tired out today, but appreciate the show. Thank you, Shrekahart. Take care, everyone, says Melissa Blues Guy. Have a good one, Prime Minister. Uh if you uh want to tell me what you're looking at and do some trenching or whatever, I'll be around. Hit me up and I will see everybody in the next episode. Underground crypto out.