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00:00EMILY: WELL, CRYPTO HAD ANOTHER BAD WEEK. IT MAY ONLY GET WORSE. JOINING ME NOW IS THE CHIEF COMPLIANCE OFFICER AND GENERAL COUNSEL AT THAT WISE -- BITWISE. BITCOIN $29,000. TECH STOCKS BOUNCED BACK. WHY NOT CRYPTO? > > WELL, THANK YOU FOR HAVING ME. DESPITE THE VOLATILITY IN PRICES, TRIP TO IS THAT VOLATILE, RISKY ASSET. IT WILL BE AFFECTED OR IMPACTED MORE THAN THE GENERAL MARKET, BUT WE HAVE SEEN THE PULLBACK IN THE STOCK MARKET AND THE PULLBACK IN CRIB YOU AS WELL, -- CRYPTO AS WELL, BUT WE HAVE HAD A NUMBER OF PULLBACKS AND CRYPTO SINCE IT STARTED, AND IT HAS SURVIVED EACH ONE IN CONTINUES UP INTO THE RIGHT. MY MESSAGES KEEP CALM, CARRY ON, LOOK AT THE LONG-TERM HORIZONS. NONE OF THE BUSINESS ESSENTIALS HAVE CHANGED. WE WILL LOOK AT THIS AND CONTINUE. EMILY: WHAT DO YOU THINK WILL BE NEEDED TO TURN CRIB THOUGH IN TWO A TRUE INFLATION HEDGE -- CRYPTO INTO A TRUE INFLATION HEDGE? > > WHAT WE HAVE SEEN OVER THIS YEAR, WHAT I CALL THE YEAR OF THE DEFINITION, WE ARE GETTING INTO THE MAINSTREAM, PUSHING INTO INSTITUTIONAL AUDIENCES. FIDELITY HAS ADDED BITCOIN AS AN OPTION IN IRA ACCOUNTS. THIS IS HUGE. THIS IS NOT GOING AWAY. WE ARE SEEING MORE CRYPTO EDUCATION THIS YEAR. I JUST CAME BACK FROM THE D.C. BLOCKCHAIN CONFERENCE, AND WHAT WAS REALLY POSITIVE AND COMPELLING WAS SEEING MEMBERS OF CONGRESS WHO ATTENDED THE EVENT AND WERE ENGAGED, TALKING ABOUT LEARNING MORE, ENGAGING IN PERSON, WHICH WAS GREAT TO HAVE THAT IN PERSON WITH MEMBERS OF INDUSTRY SAYING, TEACH US MORE. WE WANT TO LEARN MORE ABOUT THESE BUSINESSES. AND WHETHER THEY WERE TAKING THE APPROACH OF CORY BOOKER, WHO WAS TAKING THE APPROACH OF MY CONSTITUENCY NEEDS ACCESS, AND THIS TECHNOLOGY WILL GIVE MY CONSTITUENCY ACCESS THEY HAVE NOT HAD FROM A NUMBER OF FINANCIAL INTERMEDIARIES THAT HAVE SHUT OUT OF THE FINANCIAL SYSTEM -- THEM OUT OF THE FINANCIAL SYSTEM, OR YOU HAVE THOSE SAYING THIS IS INNOVATIVE AND WE HAVE TO KEEP THE BUSINESS ON OUR SHORES. THE MESSAGES WE NEED REGULATORY CLARITY, AND WE HAVE A NUMBER OF FOLKS PUSHING TOWARDS REGULATORY CLARITY, LOOKING FORWARD TO SEEING THE GILLIBRAND BILL COMING DOWN THE PIKE, AND ALL OF THESE ARE PUSHING THE DEER OF THE DEFINITION WHERE NEEDS TO BE , MORE REGULATORY CLARITY, WHICH IS WHAT THE SPACE NEEDS. EMILY: TEACH THE AUDIENCE, THIS TERRA SITUATION, WHAT WILL HAPPEN? > > IT IS A PETS.COM SITUATION. EMILY: THAT IS HELPFUL. > > IT WAS A RISKY INVESTMENT. WHAT IT IS IS ONE OF THE HEADLINES I SAW SPOKE TO ME, THE GROUND SHOOK, BUT THE FOUNDATIONS ARE SOLID WITH REGARDS TO THE CRYPTO ECOSYSTEM. IT HAD ITS IMPACT, AND WE LEARN FROM THAT. WE LEARN FROM WHAT HAPPENED WITH THIS PARTICULAR DIGITAL ASSET, AND THE PEOPLE WHO MADE THAT INVESTMENT ALSO LEARNED, OK, THIS IS VERY RISKY. DID I DO MY HOMEWORK? DID I PUT IT IN THE CORRECT CATEGORY? IT IS NOT BACKED BY FIAT CURRENCY. THERE ARE OTHER STABLE COINS THAT ARE MUCH LESS RISKY, THAT ARE PEGGED ONE TO ONE WITH REAL ASSETS. ALGORITHMIC STABLE COINS ARE NOT. IT IS BACKED BY CODE. IF YOU ' RE LOOKING AT SOMETHING BACKED BY CODE, YOU HAVE TO

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TerraUSD Is the 'Pets.com' of Our Time

Katherine Dowling, CCO of Bitwise Asset Management shares her thoughts on the crypto market and the Blockchain Conference. She speaks with Emily Chang on "Bloomberg Technology". (Source: Bloomberg)

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