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title: 25 Sept - RV - Daily briefing with Raoul Pal

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# 25 Sept - RV - Daily briefing with Raoul Pal 


## Raoul thoughts on China extending ban to Crypto 
- Cleaning the leakage and preventing illegal capital flight 
- Not big news as we have seen similar news in the past 
- Competition for electricity and other commodity resources in china
- China CBDC is coming soon 


## Bitcoin following path of 2013. ETH, SOL, following path of 2017. 
https://twitter.com/RaoulGMI/status/1441559246705942528 


## SEC Gary Gensler
- People trained in negotiation skills will set the boundaries high and then look to the negotiation table. 
- Several agencies might regulate crypto. Internal fight and politics within the agencies. 
- Security laws written in 1934 are not suitable for this current time. Security laws might have to change. 
- 99% and 1% and consumer safety. SEC should not prevent the 1% to access tokens 
- Risk warnings should be included.
- There will be court cases and might scare occasionally investors and impact the market. 
- Eventually SEC will work with everybody in the industry 
- Similar issues happen with the internet in 1997


## Leverage & Crypto
- It's a feature of the markets. Recently it's coming down. 
- Leverage in Crypto is fully collateralize and it's a key feature to make market robust. In Crypto there are no margin calls like in the future markets. 


## Crypto Conferences
- Pivotal moment. Most of the attendees were Hedgefunds, large Banks and funds. Most the contents were related to Crypto. 
- World is combining between crypto and financial world. 



# Risk on tightening by the Fed 
- We are not at that point of the cycle. When it happens, it will be a trade off. 
- Shrink the balance sheet might happen in 2022, then is when you have to worry about it. 
- Markets don't fall from raising rates until a year after that. 


# Closing thoughts. 
* Network adoption is strong. Correction might finish in the next following days and. 
* Oct and Nov December could be ridiculous. 
* Raoul is paying attention to ETH/BTC ratio. He has no cash left to add on the market :)



