Marketplace Podcast Summary: "What Does the Crypto Industry Want?" Marketplace | Hosted by Amy Scott | Release Date: November 11, 2024

1. Crypto Industry Regulatory Efforts

Timestamp: 00:29 – 03:19

The episode opens with a significant highlight of the crypto market's resilience, with Bitcoin reaching a record price of over $87,000 amidst post-election optimism. The crypto industry's substantial investment in election campaigns, particularly supporting President-elect Donald Trump, underscores their strategic moves to influence favorable regulatory outcomes. Donald Trump’s pledge to position the United States as the "crypto capital of the planet" and his family's involvement in a new crypto business reflect the industry's ambitions.

Stephanie Hughes reports on Coinbase's stance in the evolving regulatory landscape:

• "Coinbase would now like to see the new Congress pass new laws, including one that would clearly define what crypto assets are and who exactly is in charge of making the rules governing them." [01:40]

Paul Grewal, Coinbase's Chief Legal Officer, emphasizes the industry's push for clear legal definitions to foster growth and reduce legal ambiguities:

• "All of us are begging for sensible standards that would allow us to get back to building great products and services and spend less time and frankly, less money arguing over legal definitions and statutes." [02:10]

Similarly, Dante Disparte of Circle advocates for comprehensive stablecoin legislation to align digital currencies with existing international laws:

• "A US Law would mean existing international laws wouldn't dictate how digital dollars are regulated." [02:35]

Gil Luria from DA Davidson comments on the industry's maturation:

• "Early on in the crypto industry people didn't want regulation because part of the ethos was this decentralized we can do whatever we want wherever we want. And then people started going to jail and everybody realized, well, I can't actually do whatever I want whenever I want." [02:51]

Luria further adds that clear regulations will provide the necessary framework for companies to operate confidently:

• "Rules will help those in the industry figure out what they can do because there will be clear laws to guide them." [03:09]

2. Market Updates and Inflation

Timestamp: 03:19 – 06:03

Amy Scott transitions to the broader economic landscape, noting a bullish trend in the stock market with the Dow Jones hitting a record high. However, concerns loom over inflation trends, with the Consumer Price Index (CPI) expected to show a consistent rise of 2.10% for October, potentially indicating stalled progress towards the Federal Reserve's 2% inflation target.

Kristen Schwab discusses the implications of the inflation data:

• "One month of weird inflation data is just one month. But Sean Snaith... says a few months is eyebrow raising." [04:18]

Sean Snaith from the University of Central Florida highlights the shifting dynamics:

• "They left the door open to either cut further or not." [04:54]

The uncertainty extends to the Federal Reserve's strategies, influenced by new administration policies and their impact on the job market and inflation. Betsy Ladize notes the dual mandate challenges:

• "Fewer openings and fewer people quitting... means wages are less likely to outpace inflation." [05:30]
• "While the Fed is cutting right now, it might have to cut at a slower pace to make sure inflation doesn't stall but keeps coming down." [05:47]

3. Rising Beef Prices

Timestamp: 06:03 – 08:31

The conversation shifts to the agricultural sector, focusing on the surge in beef prices. Justin Ho reports that cattle futures have risen nearly 10% from August to October, driven by supply constraints and increased production costs.

Naomi Bloom, Senior Market Advisor at Total Farm Marketing, attributes the price hike to drought conditions in key cattle-producing regions:

• "Over the last few months, it's been particularly dry in cattle country... droughts mean less hay." [06:23]

This scarcity forces ranchers to reduce herd sizes, thereby limiting beef supply. Glenn Tonser from Kansas State University adds that rising production costs, including feed, labor, and land rent, further pressure beef prices:

• "Almost all of those entries are going to be higher than they were certainly before the pandemic." [07:03]

Despite dwindling supplies, consumer demand remains robust, with slight shifts towards more affordable beef cuts like hamburger meat. However, Naomi Bloom points out potential factors that could stabilize prices:

• "Cattle imports are up from countries including Australia, Brazil, and Uruguay, and the weather could always improve." [07:32]

4. Long Covid Research Program Challenges

Timestamp: 08:31 – 13:28

The podcast delves into the ongoing struggles with Long Covid, even after significant federal investment. Samantha Fields highlights frustrations from patients and researchers regarding the slow progress of the NIH's Recover Patients program, which has received over $1.5 billion but has yet to yield approved treatments.

Betsy Ladize, co-founder of the Sick Times, shares his personal experience with Long Covid and the broader patient community's concerns:

• "The first two years, especially, there was a lot of hope about the response to long Covid... Today, McCone is still sick." [08:57]
• "Most of the research money so far has gone into trying to learn more about what long Covid is, rather than focusing on treatments and clinical trials." [10:28]

Dr. Serena Spudich from Yale underscores the necessity of understanding the condition's underlying mechanisms to develop effective treatments:

• "There has to be a very, very strong urgency for finding treatments... we will only find treatments if we understand the condition properly." [10:35]

Criticism arises regarding the allocation of funds, with Dr. Ziad Ali suggesting that earlier, less costly research could have provided substantial insights:

• "His team and others did similar research earlier in the pandemic for peanuts... that generated evidence much more robustly and faster." [11:22]

In response to the challenges, the NIH has allocated an additional $515 million to shift focus toward clinical trials. David Petrino emphasizes the need for diversified and numerous drug targets:

• "RECOVER could do a bunch of smaller trials... testing a hundred drugs and moving into more sophisticated clinical trial strategies." [12:06]

Advocates remain cautiously optimistic but stress the necessity for continued and increased funding:

• "No matter what comes of this current slate of funding, more is going to be needed." [12:41]

Legislative efforts, such as the Long Covid Research Moonshot Act, aim to secure sustained financial support:

• "It would provide a billion dollars a year for 10 years for long Covid research." [12:53]

5. Climate Tech Investment Decline

Timestamp: 15:16 – 21:04

As global leaders convene for COP 29, the podcast addresses the declining interest in climate tech investments within the United States. Michelle Ma from Bloomberg outlines the broad scope of climate tech, encompassing renewable energy, carbon capture, green hydrogen, nuclear fusion, and advanced battery technologies.

However, funding for climate tech startups is projected to decrease by approximately 50% this year. Michelle Ma identifies key factors contributing to this downturn:

• "It's a very capital intensive sector... considered by some investors to be riskier because they're still in the early stages of development." [16:32]
• "Climate tech focused funds... generalist investors have been told to turn all of their attention to AI this quarter." [17:35]

The shift towards artificial intelligence (AI) investments has "sucked all the oxygen out of the room," diverting capital away from climate solutions. Michelle Ma discusses the paradox of AI’s energy-intensive nature potentially exacerbating the climate crisis:

• "AI is keeping natural gas online for longer... some investors are seeing capital that could have been funneled towards climate startups going towards buzzier AI startups instead." [18:22]

The potential withdrawal of federal support under the Trump administration poses additional risks to the climate tech sector. Michelle Ma warns that the absence of federal incentives could significantly impede progress:

• "If those federal dollars disappear, if those tax credits disappear, that could make a huge difference in how much progress we're able to make or not make." [19:48]

6. U.S. Forest Service Budget Cuts

Timestamp: 21:04 – 25:40

The episode also examines impending budget cuts to the U.S. Forest Service, which threatens essential services in national forests. Caitlin Tan from Wyoming Public Radio illustrates the critical role of nonprofits in maintaining forest infrastructure, such as the Bridger Teton National Forest.

Faced with a proposed $500 million reduction, the Forest Service struggles to sustain operations like campground maintenance and trail upkeep. Scott Kosiba from Friends of the Bridger Teton highlights the vital partnership:

• "They agreed to do the job at about a third of that $120,000. The toilet stayed open and clean, thanks to workers like Rhett Jones." [22:39]

This collaboration underscores the necessity of nonprofit support in the face of federal budget constraints, ensuring public health and safety within national parks. Naomi Bloom emphasizes the non-glamorous yet essential tasks managed by these partnerships:

• "It's not a sexy part of keeping access for the public, but it is so, so important." [22:12]

As lawmakers negotiate the federal budget, the future of critical services like the Forest Service remains uncertain, with nonprofits stepping in to fill the gaps:

• "The Forest Service is about to get its knees cut out from under it." [24:47]

7. Conclusion and Final Notes on Climate Finance

Timestamp: 25:40 – 26:36

In closing, the podcast references the International Chamber of Commerce's report on the economic impact of climate-related extreme weather events, totaling at least $2 trillion globally over the past decade—the United States being the most affected. This underscores the urgent need for sustained and increased investment in climate solutions, aligning with the ongoing discussions at COP 29.

Amy Scott encapsulates the interconnectedness of global events and personal economies, reinforcing Marketplace's mission to provide context beyond the numbers.

Notable Quotes:

• "All of us are begging for sensible standards that would allow us to get back to building great products and services and spend less time and frankly, less money arguing over legal definitions and statutes." — Paul Grewal, Coinbase [02:10]

• "Early on in the crypto industry people didn't want regulation because part of the ethos was this decentralized we can do whatever we want wherever we want... then people started going to jail and everybody realized, well, I can't actually do whatever I want whenever I want." — Gil Luria, DA Davidson [02:51]

• "If those federal dollars disappear, if those tax credits disappear, that could make a huge difference in how much progress we're able to make or not make." — Michelle Ma, Bloomberg [19:48]

• "It's not a sexy part of keeping access for the public, but it is so, so important." — Naomi Bloom, Total Farm Marketing [22:12]

• "While the Fed is cutting right now, it might have to cut at a slower pace to make sure inflation doesn't stall but keeps coming down." — Betsy Ladize [05:47]

This comprehensive summary captures the multifaceted discussions in the Marketplace episode, providing listeners with a clear understanding of the crypto industry's regulatory aspirations, economic trends, sectoral challenges, and the broader implications on climate and public health initiatives.