Bitcoin hitting its highest level in over a month on Tuesday as Treasury Secretary Scott Besson said that the clarity Act is on the one-yard line in New York morning trade.
We are looking at the crypto major holding above 65,500.
Now President Trump, as well as Republican senators reportedly reaching an agreement on ethics language.
The block reporting that this would ban federal officials like.
The president from issuing digital assets.
Still some Senate Democrats say they still have not seen the updated tax.
Meanwhile, Maryland Senator also Brooks says she wouldn't support the new ethics package which would have the Department of Justice enforce the clarity act instead of state attorneys and intra by the semi-trade regaining momentum this week ahead of the first mag 7 earnings report.
Of the season after the close, all eyes will be on alphabets AI cap.
Well joining me to weigh in this morning is William Quigley, co-founder of Tether and Wax.
William, good morning.
Thank you so much for joining me.
So there's a lot in terms of the regulatory landscape.
William.
So first and foremost, where do you think clarity stands as we approach the summer recess?
Well, I would say all of the difficult work, I think has now been done.
The two committees, the Agricultural Committee and the Banking Committee and the Senate, they've come together and agreed on the various languages because remember with the Clarity Act, you're dealing with the CFTC, which governs commodities, and the SEC, which deals with investment contracts.
So, this has been a really complicated bill, and then when you, you consider.
That the, the Genius Act, which passed last year, deals mostly with banking and stablecoins.
There's a lot of moving parts here.
I would say the, the legislative efforts at this point are mostly coming together.
What, what's gonna be the, the, the challenge going forward from here, assuming this passes, will be on the implementation, and the way the various federal agencies decide to interpret this law.
Yes, and while I have you here, I do want to get your perspective on price actions.
So we've been keeping a close eye on the majors in terms of Bitcoin as well as Ethan.
Yesterday we saw Bitcoin fast approaching that 67,000 level.
And depending on your perspective on the four year cycle, we continue.
To monitor the timeline as well, but with hedge funds also sitting on record short positions against crypto stocks in particular Coinbase as well as circle.
Do you think Bitcoin's recent gains will be powerful enough to force a massive short squeeze, or do you think these crypto stocks are also still a risky bet.
Well, they're definitely risky because, you know, uh, Bitcoin and crypto is quite volatile.
Uh, I wouldn't say the recent last few days, increase in the price of Bitcoin and even Ethereum is indicating anything, um, uh, long-term right now.
I think we're in this kind of middle ground space.
It's been 2 years since the, since the Bitcoin happening.
Usually, this is a period where there's not a lot of price movement.
So, um, I'm not expecting any substantial news to affect the price, uh, even with the passage of the Clarity Act, because we've been looking at that for a long time, I think that's priced in.
And finally, William, before I let you go, our eyes have been on artificial intelligence this week, in particular chip stocks, semis, as well as hyper scales, and after the closing bell today, we will be getting earnings out from Alphabet, of course we're paying attention.
To spending.
So when it comes to what's happening from the major frontier labs as well as hyper scales and of course the anticipated IPOs coming down the pike from anthropic and open AI, how are you looking at the landscape?
Well, uh, my focus is mainly on the spending.
Uh, as a former CFO, I, I can't help but do that, and the figures are, are astronomical, you know, we're talking several trillion dollars of spending that the various hyperscalers have announced they'll need to do.
Throw an anthropic and open AI into that.
I still think we need to better understand where the revenue is going to come to justify that level of spend.
I also think you'll need, we need more clarity on when these data centers are going to open.
A lot of data centers have been announced.
Many are in development, but they've been progressing much slower than I think what a lot of us expected.
So when it comes to providing that inference, you need the data centers, but these are construction projects, very complicated construction projects.
So, that also is in the back of my mind.
Are we gonna be able to hit these extremely high revenue figures?
In the case of OpenAI, Sam Altman has talked about several $100 billion in revenue by 2030.
That sounds like a long time away, but it's, you know, less than 4 years.
So, um, We still need to see all these companies marching towards more clarity around how they are gonna perform economically with this new, this new technology.
Well, it does sound as though whether we're talking about artificial intelligence or the crypto markets, uh, clarity is the key word here.
So William, we will have to leave it there for today, but as always great talking to you.
Thank you so much for joining us.
You're welcome.
Bye bye.
