Bitcoin turns negative for the week as it fails to hold above $90,000: CNBC Crypto World

Today, Bitcoin falls below the $90,000 level to end the [music] week. And

Blockchain Association CEO Summer Mercinger previews the policy summit, which kicks off on Monday.

Welcome to CNBC's Crypto World. I'm

Mackenzie [music] Sagalos. Crypto prices

are in the red to end the week. In

contrast with the S&P 500, which actually rose as traders digested inflation data that could inform the Fed's upcoming rate decision. Now, as of noon Eastern, Bitcoin traded below 90K

once again after spending the past 3 days above that level. Ether dropped

nearly 4 and a.5% and XRP fell more than 5%. For the week, Bitcoin is 2 and a

5%. For the week, Bitcoin is 2 and a half% lower, experiencing its fifth weekly loss in the past six. Ether

dropped less than 1% for the week and XRP, it is lower by 7% for its fourth weekly loss in the past five. Today's

moves lower came as the crypto market sorted through a fresh slate of economic releases. Now, that includes the

releases. Now, that includes the Commerce Department's core PCE price index for September, which is a key inflation read for the Fed. Now, the

report, which was delayed due to the government shutdown, showed an annual rate of 2.8% that is lower than the 2.9% Dow Jones estimate. Core PCE's 2% rise

on the month was in line with expectations. The data is the final view

expectations. The data is the final view into inflation before the Fed's Wednesday rate vote. And real quick, focusing on Black Rockck's spot Bitcoin

ETF, IBIT saw net outflows in November of $2.69 billion. That is its largest monthly outflow since inception.

Taking a quick look at a crypto headline. Prosecutors are recommending a

headline. Prosecutors are recommending a 12-year prison sentence for Terraform Labs founder Doe Quan. Now, as a reminder, Terraform is the company behind the failed algorithmic stable

coin US. The recommendation from

coin US. The recommendation from prosecutors is more than double what Quan's team argued for. In November,

lawyers for Quan asked the judge for a sentence of no more than 5 years. Quant

pleaded guilty to fraud charges back in August following a lengthy process to get him extradited to the US from Montenegro late last year. His

sentencing is scheduled [music] for Thursday.

All right, for our main story, the Blockchain Association policy summit kicks off in DC on Monday, featuring discussions with policy makers, regulators, and industry leaders. I

spoke with the association CEO, Summer Mercinger, about what to expect. She's a

former CFTC commissioner as well. So, we

also discussed her take on the commission's role in regulating crypto.

So, the blockchain association's policy summit kicks off NTC on Monday, and it's a very different environment this year compared to a year ago. Crypto

regulation has come a long way since then. So, my question to you is, what

then. So, my question to you is, what does the plan look like for this year's event? Is this a victory lap or is it

event? Is this a victory lap or is it more of a push for more rulemaking from the lawmakers who will be attending?

Well, this year is going to be a record-breaking year for the Blockchain Association. We have the largest

Association. We have the largest attendance that we've ever had on record. Uh we have probably the highest

record. Uh we have probably the highest caliber speakers that we've ever seen at this summit and we are actually the largest our membership has ever been. We

are now at 146 members. So, it is a very big year for the blockchain association.

We're going to be very focused on federal legislation around market structure for digital asset uh markets, tax modernization and reg regulatory

clarity. All of these will be very

clarity. All of these will be very important to the industry especially as as the president has said we are going to become the crypto capital of the world.

>> I want your take on the change in speakers you're seeing at the event this year. You have a lot of newcomers to

year. You have a lot of newcomers to Washington in attendance like Republican Senator Bernie Moreno of Ohio and Democratic Senator Angela Also Brooks of Maryland. You also have a lot of House

Maryland. You also have a lot of House leaders from both sides of the aisle.

What has the conversation been like getting these lawmakers to come to this event and what's your take on just how crypto friendly the current makeup of Congress is?

>> It's been everyone's been very excited.

Uh we have had great response to our invitations and we have you know as you mentioned a lot of new members coming some from the that have been there from the past who are coming to give us

updates number of house members. I'm

most excited that my former boss majority uh leader John Thun is going to be uh giving an exclusive fireside chat for our members during the during the

first day of the summit. So it's been a lot of enthusiasm. There's bipartisan

support for the industry and we are really seeing that reflected in this year's policy summit uh numbers.

>> We're still awaiting progress on that market structure legislation in the Senate. There was originally calls for

Senate. There was originally calls for this to get done before the end of 2025, but given the government shutdown, things are taking longer than the crypto industry initially hoped. Where do you see progress on market structure right

now? And what are the conversations

now? And what are the conversations you're having behind closed doors with some of the speakers who will be at the summit?

Yeah, progress is still going. Um,

there's a lot of bipartisan discussions that are taking place. These are very important discussions. It's how we're

important discussions. It's how we're going to get a bipartisan bill out of both the Senate Banking and the Senate Agriculture Committees. Uh, these

Agriculture Committees. Uh, these discussions are going on every day. We

are talking with staff for both of those committees. uh going through some of the

committees. uh going through some of the legislative uh tax changes that they are proposing, trying to make sure we get to the best place for industry and to have

the appropriate bipartisan support needed to get this through the Senate and back over to the House of Representatives. So, there's a lot of

Representatives. So, there's a lot of progress going on. It it's behind doors, but that's a good thing. We want those teams negotiating, talking to each other, and making sure we have a strong bipartisan bill coming out of these

committees. Now, if market structure

committees. Now, if market structure doesn't get done this year, are you confident we'll see progress in Q1 of 2026? Or is there the potential for it

2026? Or is there the potential for it to get delayed for, you know, a longer time to come, I mean, there is a risk of another government shutdown at the end of January and the midterms are next year, which could pull lawmakers

attention away. So, what do you see

attention away. So, what do you see happening to market structure regulation if it doesn't get across the finish line in 2026?

>> I actually think that 2026 is when we'll see it get across the finish line. I you

know these things take time. Legislation

uh doesn't usually come together quickly and especially if you have bipartisan legislation. So I think that the members

legislation. So I think that the members of the two committees are going to keep working together throughout the end of 2025 and into 26 when we will see legislation hit the Senate floor. There

are a lot of things that could um slow it down a little bit. you to your point the um you funding potential government shutdown but this issue is so important

and there's so much bipartisan support I really think that this will be a priority for Congress in 2026 now speaking of midterms crypto played a

huge role in the 2024 election as the industry funded races up and down the ballot across the country how do you see crypto being involved in the midterms this goound and how will the blockchain

association be involved Our goal is to continue getting by uh members elected to the House and the Senate who

are crypto friendly. You know, these are bipartisan um efforts. We don't pick one party over the other. We try to stick

with who we know is going to be the best on our issues. And there's a lot of new uh crypto champions out there who are running for office, who are already in office, and we're going to give them the

support that they need to be successful in the midterms. >> I feel like last cycle there was a blockbuster amount of spending and support that was poured into those

elections to elect the most pro- crypto Congress we've seen in American history.

Uh you also saw a pro- crypto president elected. So, will that will we see as

elected. So, will that will we see as strong a push this goound?

>> Yeah, absolutely. I think that we can't rest on our laurels. We've got to keep pushing ahead. And there are a number of

pushing ahead. And there are a number of seats where we want to make sure we get the right member in those those poss.

And so we're going to really focus on finding pro- crypto um candidates, putting our support behind them, and

growing this pro- crypto congress to be even broader uh than it is right now.

>> I mean, part of the efforts in 2024 had a lot to do with voting out people who were anti-crypto. So, do you have any

were anti-crypto. So, do you have any targets in terms of people you would no longer like to see on Capitol Hill? Tell

me about a Senate uh or House race where you feel very strongly that there is a pro crypto candidate that you would like to see take over next year in the midterm cycle. I'd love to hear an

midterm cycle. I'd love to hear an example.

>> Yeah, there's um you know trying to remember the congressional uh the the congressional districts here, but um certainly in Massachusetts there's some pro- crypto members of Congress who are

running a pro crypto um member of Congress is going to run for the Senate there. That's an area that we're very

there. That's an area that we're very very focused on. So there will be a number of states where there there are also these you know current pro- crypto candidates who are running for higher

office. We want to be supportive of them

office. We want to be supportive of them and also supportive of backfilling those seats with somebody who is also very um friendly to the industry.

>> Last thing real quick, you're a former commissioner at the CFTC and you've watched that agency evolve on crypto. I

want your reaction to the news that we got yesterday that the regulator approved spot crypto trading on US derivatives exchanges. What's the impact

derivatives exchanges. What's the impact of that both on the industry and US markets more broadly?

>> The CFTC has inov being pro- innovation in its mandate. And so I wasn't surprised to see this step taken um that's going to allow registered

exchanges to offer leverage spot crypto transactions in the US. and we've

already seen at least one of them step up and say they're going to be offering these products. I think it's great for

these products. I think it's great for the industry. It's great for these

the industry. It's great for these markets and you know this is these are transactions and markets and volume that are occurring offshore. It is so much

better to have that in the US under federal regulators oversight to ensure that there are proper market protections, proper consumer protections

and you know just to have the most the best market integrity really is having those markets in the US under federal regulation.

>> Okay, that's all for Crypto World this week. We'll be back again on Monday and

week. We'll be back again on Monday and we'll see you then.

>> [music]