The Wolf Of All Streets — CryptoTownHall

Episode: Fed & Banks Back Crypto! What’s Next?

Host: Scott Melker
Date: October 22, 2025

Overview

This episode of CryptoTownHall, hosted by Scott Melker and featuring regulars like Dave, Carlo, Gary, Joe, and several others, centers around pivotal changes in U.S. monetary policy and the banking sector’s stance toward crypto. The panel discusses the unprecedented openness of the Federal Reserve toward digital assets, the technical and regulatory evolution surrounding stablecoins, the role of banks and fintechs, the ongoing debate around CBDCs (Central Bank Digital Currencies), market reactions to current events, and the fate of various crypto tokens and altcoins.

Key Discussion Points & Insights

1. A Major Shift: The Fed’s Open Embrace of Crypto

• Fed Governor Waller’s Shift:
  The group opens by dissecting what Dave calls a “pivotal day” in which Federal Reserve Governor Waller signaled support for integrating crypto into the mainstream, moving away from previous dismissive or hostile stances.
  • Quote [04:06 | Carlo]:
    "Incredible what we witnessed yesterday, Fed Chair Waller... was very receptive to innovation, very open minded. The fact that he wants to open up the Fed Master account to... qualifying payment processors is incredible news for stablecoins and for innovation."
• Implications for Stablecoins:
  There’s excitement about the Fed considering “skinny” master accounts (narrow access to Fed systems) for regulated fintechs/crypto processors, which would be monumental for stablecoin development and integration.
• Vindication for Custodia & Caitlin Long:
  Scott highlights that this move vindicates early actors like Caitlin Long and Custodia Bank, who have been fighting for Federal Reserve access for years.
  • Quote [06:48 | Scott]:
    "This is pretty crazy vindication for her... that there will likely be some sort of connection to the Fed system for fintechs, crypto and others without them having to go through the rigmarole of getting that full master account."

2. Stablecoin Technology, Privacy & Market Impact

• Stablecoins as Payment Infrastructure:
  Both Dave and Carlo predict stablecoins will become the backbone of future payment rails, being treated more like utilities (boring but necessary, with stable revenue and lower multiples).
  • Quote [08:27 | Dave]:
    "Stable coins… will be utility... the tech underneath… will be utility style valuations because that is literally where the market is kind of pushing it to."
• Privacy & Zero-Knowledge Proofs:
  Carlo emphasizes the need for privacy solutions, like zero-knowledge proofs, to make stablecoins viable for enterprise payment operations so businesses’ financials remain confidential.
  • Quote [10:32 | Carlo]:
    "I think businesses would like to have that same layer of anonymity when it comes to what’s in their stablecoin wallets when they’re paying vendors and moving money around. Because that’s just proprietary stuff that they don’t necessarily want the whole world to be able to see on chain."
• Effects on Banks & Payment Processors:
  If banks and fintechs fail to integrate these innovations, they'll lose customer deposits to those who offer faster, cheaper services.

3. CBDCs vs. Private Stablecoins: Will Crypto Become Dystopian?

• CBDC Fears & Devil’s Advocacy:
  Scott and Carlo voice unease about rooting for the Fed, and worry the same infrastructure enabling private stablecoins could easily facilitate a retail, highly surveilled, programmable central bank digital currency.
  • Quote [13:45 | Scott]:
    "I just find it a little uncomfortable cheering for the Fed... Fed adoption of blockchain technology does not necessarily mean a ringing endorsement of crypto assets for retail."
• Debate: USDC is Already Like CBDC?
  Lou pushes back, arguing that government control over stablecoins like USDC is already functionally similar to a CBDC’s potential controls.
  • Quote [16:10 | Lou]:
    "What about a CBDC is more dystopian than USDC today?"
• Response:
  Dave, Scott, and Gary suggest there are degrees, and while Circle/Tether have complied with law enforcement, a true CBDC would make programmatic restrictions and surveillance instantaneous and unavoidable at a systemic level.
  • Quote [17:05 | Dave]:
    "Once you have a centrally controlled currency that’s programmable, they can absolutely track what you’re spending it on, 100%."
• CBDCs as a Crypto On-ramp:
  Despite concerns, several guests predict CBDCs will actually accelerate global digital wallet adoption, educating people who may migrate to “harder” assets like Bitcoin.

4. Market Dynamics: Beyond Meat, Coinbase, and Altcoin Collapse

• Meme Stock Cycle Returns:
  Scott brings up the parabolic move in Beyond Meat stock, linking it to the return of retail-driven meme stock cycles.
  • Quote [02:16 | Scott]:
    "We might be back into the meme stock cycle of the meme stock part of the cycle."
• Coinbase Decline & Market Boredom:
  The table discusses Coinbase’s 6% drop and the broader lack of excitement in crypto, suggesting this is a cyclical pause rather than any change in fundamentals.
• Altcoin Apocalypse:
  Joe notes the collapse of Kadena, once a top-10 layer 1, and predicts the death of many projects unable to generate real revenue beyond token sales.
  • Quote [43:23 | Joe]:
    "The majority of tokens you see today will not exist in the future, but there will be many more tokens in the future than exist today... probably have a 6% retention rate."
• Valuations & Regulatory Change:
  Dave and Joe propose that reforming securities laws (especially the Accredited Investor Rule) would allow for a true market sorting of crypto projects, with only a small subset gaining real value.

5. Banking Rails, Fedwire, and Payment Technology

• Future of Fedwire & ACH Networks:
  Constantine asks about the fate of traditional payment rails. Dave believes Fedwire will evolve, probably adopting blockchain tech under the hood, while bank business models (especially for smaller banks) must adapt to new fee-based structures.
  • Quote [40:17 | Dave]:
    "Fed Wire will just morph... They don’t make money off it... Ach, will... leave the wrapper, but it’ll just be replaced by stablecoins. The bigger difference here is that banks, business models are going to need to change."

6. Tokenization & Asset Management

• Wall Street’s Incentive for Tokenization:
  Dave explains why major asset managers (e.g., Larry Fink/BlackRock) are pushing both Bitcoin ETFs and tokenization: cost savings, more asset flows, and control.
  • Quote [29:12 | Dave]:
    "In a truly fully tokenized world that the ETF structure is not going to be nearly as desirable... it’ll cut your back office costs in half, if not 75%. By the way, those are huge numbers for people on Wall Street."
• Stablecoins as Trojan Horse:
  Carlo and Dave agree stablecoins are the “Trojan horse” for mass crypto adoption, as people become comfortable with digital dollars first.
• Importance of Regulatory Clarity:
  The regulatory environment remains unclear, but speakers believe a convergence of securities/tokens could clarify what projects have real staying power.

Notable Quotes & Memorable Moments

• On Market Priorities vs. Real News:
  [01:11 | Dave]: "I just think it's peak silliness when one TV character's bloviations... get more press than the most iconic... powerful body in monetary regulation effectively blesses crypto."
• On CBDC risk: [15:17 | Dave]: "CBDC is the most dystopian thing that could possibly happen."
• CBDCs and Stablecoin Overlap Debate: [19:33 | Gary]: "Personally, I think stablecoin is no different than CBDC... Any linkage to anything else should be described, like, in great clarity."
• Token Valuation Reality: [45:07 | Dave]: "FTT token, FTX token is still worth double Del Taco... It has less value than trading baseball cards."

Timestamps for Key Segments

• 00:00–04:00 — Scott’s role, Kramer’s comments, market overreactions
• 04:06–08:27 — Fed and banking system shift, stablecoins as infrastructure, privacy technology
• 10:32–13:45 — Impact on business payments, stablecoin adoption, regulatory transitions
• 13:45–15:17 — CBDC concerns, Fed endorsement, privacy issues
• 16:10–19:33 — Debate: USDC vs CBDC, government control
• 22:57–26:17 — Payment tech evolution, ETF vs tokenization, stablecoins as bridge
• 29:12–32:12 — Wall Street tokenization incentives, mass adoption paths
• 34:15–39:07 — Market stories: Beyond Meat, Coinbase, boredom, capital flows
• 43:23–45:07 — Altcoin problems, token/project death cycles, value discernment
• 50:06–56:15 — Profits, rates, risk, company turnarounds and management
• 56:15–60:12 — Final rants on management, ego, and proper company strategy

Conclusions & Takeaways

• The Federal Reserve’s stance on crypto marks a historic turning point; the opening of Fed master account access to payment processors and fintechs could supercharge stablecoin innovation and adoption.
• The infrastructure being built for stablecoins could, for better or worse, also pave the way for a U.S. CBDC, raising important privacy and freedom questions.
• Banks and legacy payment platforms may face existential challenges if they fail to adapt quickly to blockchain rails.
• Transition periods will be messy: many altcoins and projects will fail, while stablecoins and Bitcoin continue to represent the mass-market bridge to the “Internet of Value.”
• There's a consensus that technology, regulation, and market demands are forcing financial institutions to evolve, even if the path is unclear or outcomes uneven.

Panel’s Final Message:
Crypto’s foundations are rapidly being built into the traditional financial system. The jury is out regarding what the eventual mix will look like, but privacy, utility-over-hype, and thoughtful regulation are becoming more central than ever.