The Senate is running out of time to

pass the biggest crypto bill in American

history and it still needs to go to the

House. Meanwhile, the CME has launched

almost 247

24hour

a day single stock futures and North

Korean hackers have hacked North Korea.

We've got a lot to talk about today on

the Daily Wolf. Let's go.

What is up everybody? Welcome to the

Daily Wolf on Yahoo Finance. I am your

host Scott Melker, also known as the

Wolf of All Streets. We have a lot of

stories to cook through today. There's a

lot of signal in the noise, but always a

lot of noise as well. We're going to

start at the most predictable place

because we're running out of time to

talk about it. We've got this right

here. Clarity Act faces fresh delay as

Senate prioritizes Russia sanctions

bill. So Thoon has decided the Senate

calendar and nonsurprisingly the Clarity

Act is not on it for this week, meaning

that next week will be the last chance

before the recess for the United States

Senate to pass the Clarity Act. Now, as

you know, we now have a merged bill that

came out merging Senate Financial and

Agriculture that includes ethics

language for the first time, but that

ethics language is still a major

sticking point for Senate Democrats who

are needed to pass this act. Now,

remember, not only does it need to be

passed through the Senate and voted on,

but it also then has to go to the House

to be voted on, and then the president,

who has said he will sign it, would need

to sign it. But he's also said he's not

signing anything right now until they

get the voter registration act done. So

it could also uh hit that wall even if

this all gets passed. Now I was skiing

recently in Cororche u because I'm fancy

in France in December. I don't know if

you guys have ever seen this but it's

the shortest runway in the world. You

literally have these like it's like

Hunger Games for really rich people.

They come in, they decide whether

they're going to live or die and they

divert. They come back. shortest runway

in the world has a hill literally to

stop your plane and to get it going

faster. Well, the United States

government, the Senate is trying to land

a 747 on this thing right now. That was

a way of me saying there's a really

short runway to get the Clarity Act

done, but it felt good, right? So, I

would say that the odds are still

extremely low. We haven't even gotten an

agreement on ethics language. I just

think it's so funny. I mean, the Clarity

Act here has survived stable coin yield,

government ethics, partisan warfare, and

outf faces its most dangerous opponent,

congressional vacation, right? And there

was an interesting take that the

president could actually force the

Senate to skip their recess and vacation

and stay to pass essential legislation.

I don't think that's going to happen,

but we'll see. So, the story here is

that we're the Corsal runway trying to

land an A380 and maybe it's not going to

happen. Maybe there's still that 5%

chance that it will. Meanwhile, in the

degenerate world of the CME, we've got

this. CME launches single stock futures

enabling investors to trade Spaces,

SpaceX. Uh, I highly don't recommend

that. Micron and others 23 hours a day.

So, that gives me an excuse to uh dunk

on the critics and tell you that it was

mathematically guaranteed when SpaceX

was trading over $200 with almost no

float and sellers even available in the

market and people were putting their

entire entire retirement funds into

SpaceX that it would be trading under

like 110 bucks today, which it is. Just

that's my little I told you so from my

how not to invest segment that I did for

you on SpaceX recently. But yeah, now

you can trade single stock futures 23

hours a day. I believe it's six days a

week. So listen,

it is interesting because crypto spent

years obviously arguing that stock

should trade around the clock. The CME

just finally agreed and capitulated, but

they're doing it without putting a

single stock on chain. This using their

existing systems. They tried this in

2002 actually to launch single stock

features futures and it failed

spectacularly. But that was because it

was in the depths of the end of a bare

market in tech and because back then

really retail was not interested in

speculating with leverage. Now once

again these are options contracts.

They're not actual stocks but they

effectively will trade like them for

people who are doing it. And this is

clearly a reaction by the CME to

Hyperliquid, Coinbase, Robin Hood,

everybody who's offering 247 365 access

to stock trading, including preIPO

shares. So you're going to get 55

standard single stock futures. This is

for institutions at the CME, by the way.

22 micro single stock futures. It will

cover the basically most highly liquid

55 stocks. So Nvidia, Apple, Tesla,

Amazon, all the big names. a standard

contract to be a 100 shares. A micro

contract will be 10 shares. These will

settle in cash and quarterly and trade

from Sunday evening to uh I believe yes,

Friday afternoon. So like literally

they're going to take an hour off to

clean the puke off the floor of the

casino each day while crypto keeps

trading in the casino that never closes.

But I I I just think that this is

fascinating because clearly this is a

defensive maneuver against the crypto

industry that has now made trading

during market hours, even on individual

stocks, effectively moot. We know that

the future will be largely tokenized,

but they're intending to compete. And in

that same market, we've got a crazy

story. Perpetuals tied to SKH Highix hit

by flash crash to $900 on Hyperlid. But

this is the problem that's still here

exposed on the tokenized side of 24365

trading tokenized stocks. You have

moments where there's very little

liquidity because the main market is not

open, but something is still trading a

tokenized version that's attached to it

and have a flash crash. So you had a 20%

dip basically from $1,000 to $900 and

right back on hyperlquid. And that could

have been because somebody got

liquidated or they fat fingered an order

that was too big and it crashed the

market. But there's very thin liquidity

still for some of these tokenized

assets. And when somebody tries to move

size, it can crash the market. And then

when the Cosby itself opened, SKH Highix

went down about 15% after this had

happened for 20. And there's question as

to whether actually the price action on

hyperlquid

forced certain traders to make decisions

based on what they thought the price

would be on the actual Cosby. Now

listen, the Cosby uh another segment of

our how not to invest was the way the

Koreans are just the biggest degenerate

traders and gamblers on the planet. And

you remember when I told you that they

were selling their uh insurance and

their savings to get leverage ETFs of

these very assets. Well, since that time

we've had so many circuit breakers on

the Cosby, it's hard to keep up. Cosby

crashes 8% as AI chip selloff slams

Asian markets. So these people were

obviously buying leveraged exposure to

the hottest market at the top and now

they're all getting liquidated and it's

crashing and we're getting circuit

breakers every day. Actually, I didn't

know what the floor of the Cosby looked

like. So I did a quick Google search of

what the South Korean market uh trading

floor looks like and here it is.

These guys are crazy. They're crazy.

That's Squid Game. That's Korean in case

you guys missed that. So listen, I don't

know what's going on over there. the

insane volatility that's not being

reflected in other markets, but very

very clear going back to the beginning

that the markets will become 24/7 365

everywhere and uh much like SK squid

game, you could just die in the middle

of the night with your position. You

used to just be able to die uh Monday to

Friday during trading hours. So now

listen, this is a little bridge from the

CME story we have right here. I told you

about this weeks ago, but people still

talk about it. We have this one right

here. See, that's our trading floor.

Very orderly. Not like that, right? Very

orderly. Inside the CME and CFDC's

battle over onchain perpetual futures.

So, the story I just told you gives us

some color. A few weeks ago, I told you

that CME was actually suing the CFDC,

their own regulator, over allowing

perpetual futures, which is that

cryptonative product, to exist because

they said that these are not the right

kind of contracts and that people

shouldn't be able to trade perpetual

futures. They don't have a settlement

date and all these reasons. Well, now

you can see the reason because they're

trying to slow it down so they can do it

not on crypto rails and capture the

value themselves. But the battle over

what all of these uh entities can do and

can't do is going to rage on. But it's a

story of the incumbents trying to slow

down crypto rail so that they can catch

up and offer the products themselves.

And the CFTC

uh of one, it's one guy, Mike Celick, he

he is the entire commission. uh you know

they've been going at it with a lot of

leg legacy entities and with the states

if I told you over prediction markets

and we have a story there Minnesota

cannot ban prediction markets as

lawsuits play out judge rules so you've

seen obviously that the CFDC says that

they should control regulation over

prediction markets a lot of the states

pushing back and banning these well now

that ban has been effectively lifted in

Minnesota for now so Minnesota tried to

ban prediction markets and a federal

judge predicted that Minnesota would

lose, right? And so now you had this

bill where Minnesota criminalized Kouchy

and Poly Market and all of these and the

CFTC challenged the law and now a

federal judge is granting a preliminary

injunction blocking enforcement. So they

found that the plaintiffs are likely to

succeed on their federal preeemption

argument if it goes to court. Now, one

of the best parts of this is that a

federal judge literally had to comment

on this that the court specifically

raised an entertainment contract

involving Love Island is the kind of

market that can present a difficult

legal question, right? So, they're

saying, "Hey, maybe these are great

hedging instruments that should be used

into the future and they're legitimate,

but maybe you shouldn't be able to trade

on inside knowledge of which contestant

uh has a threesome and gets kicked off

Love Island tomorrow,

right?" So, I don't know if they do that

on that show. I've never watched it, but

it feels right.

If you guys ever watch Love Island,

that's really a show. Anyways, probably

shouldn't have said that. Um, [laughter]

so, so the the battle over the turf for

prediction markets is going to be

endless. Now, I highly recommend uh to

shill my own content. This coming

Sunday, I'm putting out a podcast that I

just recorded with ex CFDC chairman

Chris John Carlo and we talked at length

about this and he made a very, very

clear point. Of course, listen, he was

the head of the CFTC saying this is the

CFTC's jurisdiction and not the states

at all and that it's going to go to the

Supreme Court and the CFTC is going to

win. And his argument was that for the

states basically to to uh be able to be

the regulator on this, there had to be a

middleman, right? a prediction market

contract, regardless if it's on sports,

anything else, gambling, whatever you

call it, that is a bet that's binary

between you and me over the outcome of a

prediction. His point was that states

get to regulate things that are like

casinos where there's a house in between

that's keeping a vig and obviously the

casinos and the states who are the

house, they want control over this, but

these contracts do not count. It really

changed my thinking about uh the way

that these should be positioned. And

once again, Chris John Carlo, my friend,

uh, basically convinced me that I was

kind of wrong about something. Shocker.

Scott was wrong. Happens every day. Ask

my wife. Next story. Ethereum, Salana,

and Avalanche get busier and cheaper

even as token prices fall. This is a

great report from Bitwise that kind of

showed this strange phenomenon we're

having in the market where actually

blockchain adoption is increasing

massively, but the tokens are dumping to

Hades. ETH, Soul, and Avac each fell

approximately 50% or more over the past

year. Meanwhile, Ethereum transactions

increased from 121 million to nearly 240

million. But the revenue on that dropped

41%. That's because there's now uh more

block space. Basically, it's become a

commodity and that has caused for the

transactions to be cheaper. So, even on

more transactions, they're making far

less money. Actually, very good for the

consumer. Salana processed nearly record

transaction volume while its network

revenue declined. Avalanche Cchain

transactions roughly quadrupled to 236

million while revenue fell to

approximately $330,000.

So listen, more transactions prove that

people want the product, but they do not

prove that the token captures the value,

which has become a huge problem in this

market. Right? The tokens are priced

based on speculation from previous

cycles. And even if their utility

increases, maybe it doesn't justify the

price that they're trading at. I got two

more quick hit stories to get to right

now. Bit mine jumped 30% on more ETH buy

ahead of Clarity Act vote. So the story

here is that Tom Lee and Bitmine are

financially engineering their balance

sheet now much like Michael Sailor is

with strategy. He now owns almost 5% of

all the ETH. Almost all of that is

staked. But interestingly, Bitmine also

doing a huge share buyback program.

They've basically uh been doing that all

month with money that they raised by

selling shares. So, selling shares to

buy shares. Uh this is not exactly

revenue, it is financial engineering.

Then the final story that I had to get

to, which is why we're cooking, North

Korea arrest hackers accused of

laundering stolen funds from country's

bank via crypto. So, yeah. uh North

Korean hackers woke up one day and said,

"We've been trained by our government to

hack the entire crypto world for

billions of dollars for our government.

Wait, we can we can do this and keep the

money." So, they hacked their own

central bank and basically got caught.

But they hacked the central bank. They

sent the money out their

microtransactions to China and then had

people physically smuggle the money back

into North Korea. And all I can say is

those dudes are dead. I mean, this is

North Korea. South Korea is the Squid

Game, but North Korea is real life Squid

Game. Like 24/7, 365 trading on your

life, right? So listen, the CME is

trying to catch up 23-hour trading 6

days a week. It is very clear that the

future of all markets is 24/7, 365. But

this show is not. We only have 15

minutes and I'm done. I'll see you

tomorrow. Peace.