Summary
In this week’s episode of the NFA Podcast, Nish and Michiel unpack one of the most eventful weeks in crypto, AI, and regulation we’ve seen in months.
We begin with two major pieces of legislation that could reshape the crypto landscape in the US: the Genius Act and the Clarity Act. The Genius Act requires all stablecoin issuers operating in the US to maintain asset-backed reserves, a move clearly aimed at increasing trust and transparency in a market long criticized for its opacity, particularly with players like Tether, which still hasn’t completed a full audit. Meanwhile, the Clarity Act formally classifies digital assets as commodities, shifting the regulatory framework and potentially giving clearer jurisdiction to the CFTC over the SEC. What does this mean for companies like Circle, whose USDC coin is already regulated and backed by reserves? Nish and Michiel break it down.
From legislation to security breaches, the episode shifts focus to the $44 million hack of CoinDCX, one of India’s largest crypto exchanges. Michiel questions North Korea’s involvement, especially given the regime’s recent history of targeting exchanges like Bybit. Nish points out that the scale of the loss is devastating even if users weren’t directly affected, especially in a fast-moving and trust-sensitive market like India.
The conversation then pivots to AI agents, specifically the launch of OpenAI’s ChatGPT Agent and Perplexity’s Comet. These new tools promise to automate web tasks and increase user efficiency, but they come with alarming trade-offs. These agents can take full control of your browser and system, with unclear limits on what data they access. Michiel raises the core question: “Why would anyone hand over control of their computer to a company they don’t fully trust?” He also tells a disturbing story involving a Dutch tech reporter and a ChatGPT hallucination that suggested pairing risotto with a “poop sandwich.” The story is both humorous and troubling and drives home how unreliable LLMs can be when misused or blindly trusted.
The pair then dive into market movements, specifically the altcoin rollercoaster that played out over the past week. The Altcoin Index fluctuated wildly, dropping from 62 to 42 in a matter of hours, only to rebound to 55. Bitcoin remained relatively stable, but altcoins like Solana (+24%), Dogecoin (+35%), XRP (+21%) and BNB (+16%) saw significant gains. Nish explains that this cycle is unlike previous bull runs, with institutions entering, regulations shifting, and meme coin frenzies returning. She also notes that staking protocols like Aave and Hype are losing momentum, while Layer 1s are back in favor.
Nish’s trading competition update is one for the books: despite not making a single move while on vacation, her NEAR position surged 43%, leading to a total portfolio gain of 38% over two weeks. Michiel’s more conservative portfolio—50% in Bitcoin, the rest split between Nvidia and Broadcom—returned just 1% this week, though he reminds listeners that he’s still up 14.57% since early June. Together, they discuss what this means for active vs passive strategies, risk management, and how fast recovery can happen in crypto - if you survive the drawdown.
The show closes with predictions for next week. Michiel thinks Bitcoin will remain stable and altcoins will rise slightly. Nish sees the Altcoin Index staying in the 50–60 range. Michiel plans to move half of his Bitcoin into a yet-to-be-determined altcoin, possibly Solana. They end with a reminder that none of this is financial advice—and a lesson both hosts agree on: if something in your portfolio is eating you up emotionally, it’s probably time to let it go.
Keywords
CoinDCX hack, ChatGPT hallucinations, AI agents, altcoin season, Ethereum, NEAR Protocol, Solana, Sui, trading strategy, meme coins, stablecoin regulation, US crypto law