Mm.
Crypto in the spotlight as Bitcoin cleared all-time highs above 125,000.
The US government shutdown is slowing down some progress on digital assets, but the SEC says no new spot crypto ETFs will be approved during the shutdown.
Lawmakers are still pushing ahead with a market structure bill, but timelines are slipping.
At the same time, the Senate Finance Committee held a hearing on crypto.
Tax policy last week, despite criticism that Congress should be focused on the budget fight, and the US Treasury won't tax unrealized capital gains on crypto, a big win for digital asset treasuries.
Meanwhile, CME Group plans to launch 24/7 trading for crypto futures and options early next year.
This move lets CME compete with exchanges like Binance and D and could reduce.
Weekend price gaps in the market.
Well joining me as we return from the weekend is Patrick E Young, chairman and founder of Exchange Invests.
Patrick, good morning to you.
Thank you so much for joining me.
A lot happening across all asset classes, but first and foremost, let's look at crypto.
So the CME looking to go full 24 hour for trading in crypto.
Do you think this could eliminate the so-called CME gaps?
Look, I think it's very interesting, Remy, because what we're certainly looking at here is a mature, long standing regulated exchange which came out of institutional markets under their CEO Terry Duffy.
They've been moving gradually more and more into retail and obviously in the crypto world it is going to be interesting because CME has all of these things like a very, very large central counterparty clearinghouse US regulations.
Coming out of its ears that does make it a lot more reputable than a lot of the cash markets out there.
At the same time, will it end up being the policeman, or will it end up actually taking, sucking some of the earth out of the cash market because as we know, the crypto cash market is expensive to trade in and relatively inefficient, which has always been the problem of the modern day crypto marketplace.
And speaking of which, you mentioned regulation, and here in the US we're keeping our eyes on the nation's capital as the government shutdown continues, but what do you make of where crypto's regulatory environment stands as of now?
It's very interesting, isn't it?
I mean, we're seeing an incredible degree of prioritization when the government's actually in government, as it were, and certainly I think a lot of people in wholesale and you know, legacy financial markets are becoming increasingly frustrated because what they're seeing is a huge amount of effort going into crypto regulation.
And yet what is the size of crypto?
Well, the whole size of the universe is barely that of the top two of the magnificent 7 digital.
Stocks in the USA, so it does seem to us that there's an incredible, almost disproportionate move in order to try and put together some sort of crypto regulatory scheme at great pace.
And hopefully once that's through, we'll actually see something very, very exciting happen in the crypto space.
But at the same time ticking up to new highs that are relatively vapid doesn't strike me as showing that there is a huge underpinning desire for crypto in the world.
Well, Patrick will continue to keep an eye on the nation's capital, but of course we are paying attention to what's happening with the US shutdown.
So based on what you know, how do you feel the shutdown will actually play out?
Look, I mean, it's a very, very interesting situation.
We've got a very, very stubborn opposition who have essentially done everything in their power to try and thwart the Trump administration at all points in time, and they continue to do so.
That doesn't seem to me from afar overseas across the Atlantic as a very reasonably democratic thing to do, but that seems to be the way that US politics works for the time being.
In many respects, having a government shutdown actually saves the US some money, and it doesn't borrow so much.
So therefore, the under Pinning is actually it improves the overall economic picture in many ways and rather undermines the whole argument for reopening the government because it rather underlines the concept that well if the government is so wasteful, perhaps we could keep it shut in whole or part and therefore it seems to me to be an oxymoronic argument for the DC Beltway to get through.
Hopefully sooner or later the services that the people need will actually be reopened and we'll see a stubborn Congress manage to come back to the table.
And very quickly, Patrick, I do want to shift our focus on over to France.
So France's government thrown into crisis as newly appointed Prime Minister Leoru and his government resigned just hours after unveiling their cabinet, and we are looking at French stocks as well as the euro falling.
So what do you make of the latest announcement from across the Atlantic?
Honestly, Ray, I would turn your supposition on its head.
France actually has had a couple of moments where there hasn't been an ongoing crisis over the course of the last two years, but after 5 prime ministers, a completely haplessly incompetent president who's probably undermined the fifth republic as it stands, we're at a situation where ultimately there is a huge majority in parliament that are against the president and therefore something's got to get. that to me is not so much something that's going to be a big impact on the French stock market over time, or at least that's not what we should worry.
We should worry about the euro currency because the simple truth of the matter is the largest European Union states are all somewhat politically moribund.
They've all borrowed too much money, and that has got to sooner or later put pressure on the unified euro currency in a fashion we haven't seen for 15 years.
And we have less than 60 seconds, but Japan is set to name its first female prime minister, so she is expected to meet both Trump as well as Xi Jinping later this month at the Asia Pacific Economic Cooperation Summit.
What do you think of the political dynamic?
Political dynamic here is Mrs.
Sane Taki.
She, she's got an incredibly difficult, disparate party, the LDP, to try and bring together, but nonetheless, don't forget, where was she from.
She's a protege of Shinzo Abe.
Do we see the return of Abenomics?
Do we see actually what was the most successful period in the last generation for Japanese government?
I think the world has got to hope so.
Well, Patrick, I will also be watching this very closely.
So as always, thank you so much for joining us at the beginning of the week and thank you so much for all of your insights and perspectives.
