The Fed, China, and CLARITY + Coinbase Eats USDH

Summary

The episode covers Coinbase and Circle's takeover of USDH on Hyperliquid, replacing it with USDC; the CLARITY Act's Senate progress; and the bond market's response to Kevin Warsh's confirmation as Fed Chair. Panelists see Hyperliquid as a major winner, while the bond sell-off is attributed to term premium. Some expect rates to top out, benefiting rate-sensitive assets.

• Coinbase and Circle acquire USDH on Hyperliquid, replacing it with USDC; 90% of reserve revenue to Hyperliquid for HYPE buybacks.
• Ram Ahluwalia calls Hyperliquid one of the top assets to own this cycle.
• CLARITY Act advances to Senate floor on a 15-9 bipartisan vote; ethics and partisan hurdles remain.
• 30-year Treasury yield breaches 5% after Warsh confirmation; term premium drives the move.
• Panel discusses deflationary forces from AI and energy, but near-term rate pressure persists.
• Long-duration high free cash flow assets begin to rally as some expect rates to peak.
• OpenAI lawsuit dismissed on statute of limitations; implications for crypto foundation structures discussed.
• Gordon Liao highlights USDC's role as collateral and growth of onchain settlement volumes.