You know, what is the outcome? What is the likely outcome here? Clarity Act, Genius Act? And what does it mean to the average Bitcoin investor?
So I think look, let's start with the Genius Act, right? So you had up there that the Genius Act is now going to final rulemaking, which is really great. But even prior to that, we saw with just the passage of the bill, an explosion in stable coin activity. Now, why is that important?
Everybody focuses on the rails. They focus on the distribution mechanism, which is blockchain, and it's extraordinary, and it's cheap, convenient, secure, all that's great.
But it's the product underlying the distribution mechanism that matters. And in the case of stable coins, the vast amount are denominated in US Treasuries.
If you're an American citizen, that's a wonderful thing. We want to export the safety and security of the US government and economy out to the world and it's worked.
That's why the stalling around clarity is so depressing because what genius did for Treasuries, clarity could do for everything else, one of which could be US equities.
So imagine a world where the billions of people who can't get a US brokerage account are able to invest in the economic miracle that is US equity capital markets. That's wonderful for them, it's wonderful for us, it's wonderful for the companies.
So what's holding it back from getting passed? Who is holding it up?
So, uh, look, politics is is holding it up, unfortunately. And, um, uh, you know, we're still confident, uh, we'll get a vote and we'll see where that, where that leads us. Uh, but I can say, you know, Coinbase announced, uh, launching of offshore tokenized equities out of Abu Dhabi a couple of days ago.
I can say that unfortunately, while the politics is stalling that process, the rest of the world is not waiting. And in fact, they're seeing that stagnation as an opportunity to leap frog.
So Citybank estimates that by 2030, two and a half to 3 trillion dollars of equities will run on tokenized rails, on blockchain rails. So we have to ask ourselves, do we want that to be happening here with US equities being the underlying asset, or do we want it to be happening somewhere else with other assets underlying?
Well, because the US equity capital market is, uh, the most powerful wealth generation tool that the world has ever seen. And so, what I want to see is, and the way Coinbase is doing it, I think is the right way, in that we we actually buy the equity. So when the when the token is minted, it represents an actual share of that stock being held in custody.
So you have skin in the game. Coinbase has skin in the game.
Well, no, it's not Coinbase, so it's you. So if you, if you buy a tokenized equity, there is an underlying share of that equity actually there. So it's, it's you act, you can redeem it for that equity if you want. So that's different from the other models. So assuming we're doing it that way, what's so powerful about this is every opportunity we've had to see this in action, there's been insatiable demand around the world for these assets.
That's incredibly powerful. That improves liquidity, that helps issuers, and that helps um expand the overall pool of potential buyers and sellers of US equities from a billion to five or six billion. So that's why it's a huge deal because of the quality of our equity capital market.