Crypto exchange FTX has launched an educational initiative, 'Get to Know Crypto,' as a way to educate users and would-be investors about the space. Some say education will be key, as some crypto firms in the U.S. seek formal government regulation for the space. What does education mean in crypto, and how important is it? Tyrone Ross, CEO and Co-founder of Turnqey Labs, joins Closing Bell to discuss. 

Closing Bell

FTX Launches 'Get to Know Crypto' Educational Site as Firms Push for Regulation

some firms are now focusing on education as a way to boost the crypto industries profile and potentially push forward on regulation. Crypto exchange. F T X has launched a web campaign called get to know crypto and what some are calling an effort to educate voters, so they might urge their representatives on Capitol Hill to implement a regulatory framework for crypto. Our next guest has access education in the crypto space is important for still another reason, joining me now is Tyrone, ross co founder and Ceo of Turnkey labs firm focused on crypto for financial advisors at Tyrone. Thanks so much for coming on the show. So, your thoughts on FT X project and are you surprised that the company is launching this? I'm not surprised F T X has been making announcements every other day, but if you look at this announcement, it goes back to last year with the community initiative that they announced this part of what they're doing in Chicago and their headquarters being there, which is part of a broader inish here to educate right to also empower the folks through zero fee banking accounts and getting them educated. So this is one problem with that and I'm incredibly excited about it and I hope every other company follows suit. Why is education in this space so important? Well, I always say I have a phrase educate before you allocate, I think it's incredibly important for these reasons. One, most of the folks coming into crypto crypto now, this is their first investment, they've never invested before. Secondly, they're young and a lot of folks haven't gone back and done the researchers looking at how capital markets work or how money works looks look no further than the terra luna debacle would have been nice if they read up on financial history. And lastly because if this is going to be the next you know, trillion to two trillion in market cap, it's gonna have to be a basic fundamental understanding of what it is, how to use it in the actual utility. And it's good to see FT. X getting out in front of that. Yeah, so it is interesting because I know F. T. X. Does support crypto legislation in Congress. A lot of people obviously very aware of F. T. X. At this point, do you think education could help push that process along and that regulators might view F. T. X favorably because of that 100%. I've had the opportunity recently of having a closed door meeting with Senator Cory booker. Um and a few other folks, I think our administration, some of the administration is are doing the right things to look at this holistically and see how it could benefit those in the lower income rungs and the underserved, not the underbanked underbanked out there. That term has to stop the underserved. And I think what when we scale beyond that right in the actual, you know, full on Congress and White House. I'm not that car confident, but I think these education initiatives and Sandbank man free and a lot of folks that have testified in front of them get them to understand we're going to educate as well as provide access. So it is interesting because F. T. X has actually said that it does recommend the CFTC regulate the Cryptocurrency space versus the SEc. So treating it as a commodity, for instance, versus an actual security that the sec, Securities and Exchange Commission would regulate. What do you think is a better path for crypto? Well, as a registered investment advisor, myself and I speak for all the advisors watching it be nice if the SEC and the CFTC got together and gave unified guidance. Um, I think Gensler, you know, is sitting at the table if you will with the spade, right is gonna play a heavy hand. I think the SEc is gonna win out here, but it'd be nice if they gave unified guidance. But I also feel like if it's going to stay with Bitcoin and ethereum being commodities that, yeah, the CFTc should, you know, lead there. But it would be nice if maybe they had some oversight over the exchanges, um, and left everything else to the SEc. But we'll see what happens here. Do you think this can turn it around for anyone who unfortunately was on the wrong side of this crypto trade as you mentioned at the start of the segment, they were investing in crypto for the first time and unfortunately in some cases did get badly burned. Do you think regulation can make them feel confident? Re entering this market? I think so. But I also think it's a personal thing, right? When you're excited about that slice of pizza and you burn your mouth on it, what do you do the next time you blow right? So it could be a whole bunch of regulation, um, out there. But if investors aren't educated enough to look for warning signs or how to read charts or to redefined print when you are signing up for things, I think this is what we need to teach people and again enjoy the pizza, but next time blow on it before you take a bite. That is some good advice. I'm just curious to, in terms of your expectation as to where crypto prices head from here, we've seen a rebound of late along with the broader stock market, Crypto still seemingly moving pretty much in lockstep with other riskier assets. Do you think we can continue the rally? Um, I'm a big Howard marks guy. I love howard marks. So I don't give price predictions. But I think if you look at psychology and what's going on here, I think you're starting to see things bubble up with some huge announcements with black rock and some, you know, some other things that are happening here, some regular regulatory clarity. So I think we kind of medal around here. But I do think this when, and if we get another bull market in crypto is going to be fierce what the price action is and when that's gonna happen, I don't know. But I am a full on crypto hippie and I'm in a space 24 73 65 so I'll be here for it. Okay, well what do investors need to know Tyrone about Bitcoin and ether. The most valuable cryptocurrencies out there, certainly the most mainstream versus the defi and the all coin space. What would you recommend to investors that they know before taking a look at any of these different options? Great question. I would say logged thousands of hours understanding Bitcoin and ethereum, read books, listen to podcasts. There's so much information out there. If you can understand those two fundamentally and wrap your head around it, it is easier for you to understand anything that comes after. But just stay right here on those two, everything you want after that right? I use the phrase baby food before the rib eye. You got to get the baby food digested before you go yield farming and staking and doing all of these things. But if you can understand those two fundamentally everything else in the space, you have a core understanding though, you have some progress. That's good to know. I'm just curious to any other thoughts that your clients have right now. Questions that they have. Tyrone navigating this volatile market both for crypto and the stock market 100%. I think it's a big data story. If I've learned anything building in the space over the last three years, there's a lot of fragmented data folks are spending hours doing their taxes, There's lack of clarity on what N. N. F. T. Is in the tax implications. So I think investors and clients and other advice just concerned, alright, what are these things? And then as the data there be able to give holistic advice and my accounting for this right on my taxes. So I think that's what it is. It's a it's a data story as we get better data and richard data that is accurate. I think that will bring folks into the space and feel confident to allocate to educate themselves and feel like what they're doing is transparent and they can move accordingly for taxes or whatever else they're doing. What is the merge if ethereum merge right, that we've been covering so much here, expected to take place in just a few weeks. Really. What does that do to the crypto space? I gotta be honest. I think that's, in my opinion. I think it's it's big if you're, you know, if you're looking at the possibility of being quote unquote deflationary. I think it's much to do about nothing in terms of what it's going to mean of this big price action that's going to launch the next bull and I don't think it's that I think what we're seeing here is financial engineering in real time. And that is remarkable to move from proof of work to proof of stake to see what is going to mean for the utility of each. Um, and, and maybe to become, you know, pristine collateral at some point, there's a lot of things here, but I think it's much to do about nothing if it's just gonna launch this fantastic rally. But the technical side of it has been very fascinating, myself and others are interested to see what happens here. So it'll be a seminal event for the space for sure. Alright. Tyrone Ross, co founder and Ceo of Turnkey Labs. Tyrone, thank you so much for joining on this friday.