“The crypto cash market is expensive to trade in and relatively inefficient, which has always been the problem of the modern day crypto marketplace.” – 02:03
Patrick L. Young, Chairman and Founder of Exchange Invest, joins Remy Blaire to discuss the dynamic world of cryptocurrency as Bitcoin reaches all-time highs above $125,000. The segment begins with a discussion on the implications of the ongoing U.S. government shutdown, which is causing delays in the approval of new spot crypto ETFs by the SEC. Despite these setbacks, lawmakers are still advancing a market structure bill, although timelines are slipping. Remy highlights a significant development from the Senate Finance Committee hearing on crypto tax policy, where the U.S. Treasury announces it will not tax unrealized capital gains on crypto, marking a notable win for digital asset treasuries.
The pair explore the CME Group’s plans to launch 24-7 trading for crypto futures and options early next year. This move is seen as a strategic effort to compete with exchanges like Binance and Derbit, and it could potentially reduce weekend price gaps in the market. Patrick shares his insights on whether this shift could eliminate the so-called CME gap and discusses the reputation of regulated exchanges compared to cash markets in the crypto space.
As the conversation shifts to the regulatory environment for crypto in the U.S., Patrick expresses concern over the disproportionate focus on crypto regulation relative to its actual market size. He notes the frustration among those in traditional financial markets regarding the extensive efforts being made to regulate an asset class that remains relatively small.
Remy and Patrick then turn their attention to the political landscape in the U.S., discussing the implications of the government shutdown. Patrick provides a unique perspective, suggesting that the shutdown may actually save the U.S. money and improve the overall economic picture, despite the political stalemate in Washington.