The Wolf Of All Streets — Crypto Town Hall

Episode Title: CZ Pardoned!? Will This Derail Crypto Laws?
Host: Scott Melker | Guests: Dave, Gary, Richard, Carlo, Adam, CJ, Ajit, James
Date: October 25, 2025

Overview of Episode

This episode centers around the surprising and controversial pardon of Changpeng "CZ" Zhao, founder of Binance, by the Trump administration. Scott Melker and his co-hosts discuss the implications for CZ as an individual, the precedent set for the crypto industry, reactions across the political and financial spectrum, and what it signals about the future of regulation, institutional adoption, and macroeconomic trends for crypto. The conversation also pivots to the significance of JPMorgan’s move towards treating Bitcoin as “pristine collateral” and broader market and macroeconomic topics.

Key Discussion Points & Insights

1. The CZ Pardon — Context and Reactions

• CZ’s Pardon as a Polarizing Event

  • The panel discusses how the pardon divides the crypto community and mainstream public, with narratives ranging from rightful redress of regulatory overreach to accusations of bribery and grift.
  • Scott highlights the media and social misconception:

    "If you read my group chats, you would literally think that Trump showed up at the prison with a suitcase full of cash and sprung him directly from jail." (Scott, 01:01)

• Legal and Political Analysis

  • Dave points out the uniqueness and impact of CZ’s prosecution vs. big bank executives:

    "He's the only person who've been personally prosecuted for it... Not one person at J.P. Morgan, not one has even been prosecuted." (Dave, 04:40)

  • The pardon is seen as a move to complicate and potentially shift the political landscape, with Trump using timing to make a statement.

• Industry vs. Political Divide

  • Richard contends CZ is a hero within the crypto community:

    "If you truly are somebody that considers yourself passionate about crypto, I mean this guy is nothing short of a hero... I really believe that, you know, as crypto people, I don't believe the crypto community are polarized about this." (Richard, 09:01)

• Comparison to Other Figures

  • The group makes clear distinctions between CZ and Sam Bankman-Fried (SBF):

    “If he pardons Sam, that would be a shitstorm that I can't even imagine. I mean, that is... It’d be such a bad look, you know, it'd be like pardoning Bernie Madoff." (Dave, 06:10)

  • Carlo, who observed the SBF trial, reinforces CZ’s “cost of doing business” approach vs. SBF’s outright fraud.

2. Implications of the Pardon for CZ and the Industry

• Legal Ramifications

  • The pardon restores CZ's ability to participate in US-based businesses, especially those with money transmission licenses, which would otherwise be barred to convicted felons. (Dave, 16:11)
  • It also erases supervised release obligations, opening paths for CZ to potentially return to Binance or lead new ventures in the U.S. (Carlo, 16:50)

• Reputational and Regulatory Precedent

  • The panel debates if this sets a precedent underscoring previous regulatory "overreach" and what it signals for the future tone of enforcement.
  • Unidentified speaker raises the question of what this means for future regulation:

    "For him being pardoned... shows clearly there was overreach towards him and the crypto industry. So what does that mean moving forward for regulators and the industry, if one of the biggest guys has been pardoned...?" (Unidentified, 21:26)

  • Dave comments:

    "It was pretty damn unprecedented for an industry to be targeted... so, yeah, I mean, that's true. Whether this proves anything or not, I don't think we needed the proof. But... it's a new world." (Dave, 22:17)

3. Mainstream Misconceptions and Media Narratives

• Narratives of Grift and Bribery
  • Mainstream articles are pushing the angle that CZ purchased his pardon via donations or financial support for Trump’s crypto initiatives, which Scott and others call “accused grift.” (Scott, 18:20)
  • Scott calls out Senator Elizabeth Warren for inaccurate public statements, credited by Carlo for correcting the record:

    “Saying somebody pled guilty to money laundering is wildly different than somebody saying that they did not put the protections in place... that allowed some money laundering to maybe happen..." (Scott, 19:38)

4. Broader Political & Regulatory Backdrop

• Widespread perception among guests that the prior administration (Biden/DOJ under Warren’s influence) had weaponized financial regulations against crypto.
• The pardon is viewed by guests working in international jurisdictions as a positive move, signaling less adversarial posture from the U.S. and possibly encouraging more global engagement. (Ajit, 20:26)

5. Markets: The “Pristine Collateral” Narrative

The Shift: JPMorgan & Bitcoin as Collateral

• C.J. and Dave explain the seismic shift as JPMorgan moves to treat Bitcoin as pristine collateral for institutional clients — compared to the 1988 Basel Accord that enabled the securitization bull market.

  "This is an acceleration... beyond the Wall Street narrative of digital gold... There’s a financial premium that will be added onto Bitcoin when it is recognized as a pristine collateral." (CJ, 23:18)
  "The entire bull market... was triggered by that 1988 decision because it allowed for full use in the financial system. So now we have a financial system that Bitcoin sits on the outside. And what these banks basically just said... We need [the rules] to change..." (Dave, 24:38)

• Only available to institutions initially, but a multi-trillion dollar market is at stake.

Real-World Implications

• Collateralizing mortgages, auto loans, and other tradfi products with Bitcoin could allow consumers to avoid cashing out Bitcoin holdings (capital gains tax) and open mainstream borrowing/lending opportunities.

  "Now imagine a world where you can do both [pledge Bitcoin and a house as collateral] simultaneously. It is a very big deal." (Dave, 31:02)

• Bitcoin’s status as a “risk-off” asset grows as it integrates deeper into the financial system.

Innovations & Long-Term Effects

• Product innovation: Bitcoin-mortgage insurance, use in various credit instruments, ultimately lowering interest rates by reducing risk.
• "Getting this mainstream is a very, very, very big deal. I don’t think I can underestimate that." (Dave, 31:58)

6. Macro Environment: Interest Rates, Inflation, and “Buy, Borrow, Die”

• Flow of capital is about to shift as money market yields decline and $7 trillion parked in cash equivalents seeks better returns.

  "Interest rates coming down. I mean, there’s $7 trillion sitting in money market funds that can move at the switch of a phone call." (Gary, 38:04)

• Dave and CJ expect coming rate cuts and the changing of the Fed’s leadership to usher in an era focused on asset inflation, benefiting hard assets like Bitcoin, real estate, and stocks.

  "If you’re an investor, what you care about is: is this administration for the next three years going to target asset inflation? And the answer is yes." (Dave, 44:07)

7. Market Psychology, Cycles, and Robustness

• Despite tectonic headlines, Bitcoin’s price action remains stable; the panel sees this year-long consolidation as a foundation for explosive growth.

  "We are forming a base... for explosive growth." (CJ, 42:53)

• Debate on whether the traditional four-year halving cycle is still the primary driver or if macro forces now play a larger role.

  “People always want to think that history repeats. It rhymes, but it doesn't always repeat.” (Dave, 50:38)

• Macro shocks now seen as less likely to derail the market than in 2022, due to greater robustness and institutional involvement.

Notable Quotes & Memorable Moments

"If he pardons Sam [Bankman-Fried], that would be a shitstorm that I can't even imagine. I mean, that is... It’d be such a bad look, you know, it'd be like pardoning Bernie Madoff." — Dave (06:10)

"If you truly are somebody that considers yourself passionate about crypto, I mean this guy [CZ] is nothing short of a hero... I really believe that... the crypto community are not polarized about this." — Richard (09:01)

"The entire bull market... was triggered by that 1988 decision [Basel Accord] because it allowed for full use in the financial system. So now we have a financial system that Bitcoin sits on the outside." — Dave (24:38)

"When everybody is super bullish and million dollar bitcoin is inevitable, then start piling up some cash. Just remember the psychology of the market as well." — CJ (52:07)

"If you’re an investor, what you care about is... is this administration for the next three years going to target asset inflation? And the answer is yes." — Dave (44:07)

Timestamps for Key Segments

• Pardon Context & Mainstream Reactions: 00:11–04:27
• CZ vs. Bank Executives / SBF Comparison: 04:27–07:42
• Pro-CZ Industry Sentiment: 08:01–10:00
• Reputational and Regulatory Implications: 16:11–22:17
• Media Narrative, Warren Critique: 18:20–19:59
• JPMorgan, Bitcoin as Pristine Collateral: 23:18–32:58
• Interest Rates, Inflation & Macro: 36:14–44:07
• Market Psychology & Cycles: 46:15–52:07
• Final Thoughts & Weekend Reading: 52:35–end

Tone and Language

• The hosts and guests are unfiltered, candid, and at times irreverent, creating an animated, passionate debate.
• Their language is direct, jargon-rich, and sometimes profane—reflecting both intensity and confidence in their expertise.

Conclusion

This episode skillfully dissects the legal, political, and practical fallout of CZ’s pardon, contending that while the event may further polarize mainstream and political audiences, the crypto industry sees it as a belated remedy for regulatory excess. The conversation segues seamlessly into the pivotal development of Bitcoin being recognized as pristine collateral, which the panel sees as a “final boss” unlocking mainstream financial integration. All this, they argue, is taking place in a macro environment primed for asset price appreciation, especially as trillion-dollar liquidity waits to re-enter risk assets. The episode closes with reflections on market psychology and a reminder to look beyond cycles to the bigger institutional and structural forces now in play.