Read original post

Key Takeaways

This episode of the What Bitcoin Did podcast features a fascinating discussion on a variety of topics surrounding Bitcoin, ETFs, and the broader financial landscape. Dylan LeClair, the guest, offers an in-depth analysis of several core themes:

Bitcoin ETFs and IOU Adoption

Dylan discusses the significance of Bitcoin ETFs and how they integrate Bitcoin into the asset side of traditional financial balance sheets. He recognizes the complexity of the ETF mechanisms but sees them as part of Bitcoin's Trojan horse strategy to infiltrate the legacy financial system.

Sovereign Debt and Bitcoin's Role

A central part of the conversation revolves around the massive global debt and Bitcoin's potential to challenge unpayable liabilities. Dylan suggests that Bitcoin's growth in market capitalization could lead to a point where a Bitcoin crash would become a systemic risk similar to stock market or housing market crashes.

[

U.S. GDP Numbers: A Misleading Tale of Economic Health Amidst Soaring Federal Debt

Fresh GDP numbers came in and it was a blowout. The kind of blowout that only a $2.7 trillion government deficit can buy while the private economy crumbles around it.

TFTC – Truth for the CommonerPeter St Onge

](https://tftc.io/q4-2023-gdp/)

Bitcoin as a Global Monetary Asset

Another key takeaway is Dylan's bullish thesis on Bitcoin as a superior monetary asset. He argues that Bitcoin's adoption on a sovereign level and by individuals is an ongoing process that will eventually expose the weaknesses of the current debt-laden fiat system.

Bitcoin Accelerationism

Dylan delves into the concept of Bitcoin accelerationism, which relates to the broader philosophical movement of accelerationism. He links this to the rapid technological advancements in AI and computing power, seeing Bitcoin as an integral part of this accelerationist future.

Ordinals and Bitcoin's Use Cases

The podcast episode also tackles the controversial topic of Ordinals – inscriptions of data onto Bitcoin's blockchain, which has sparked debates within the Bitcoin community. Dylan provides a balanced view, recognizing the speculative nature of such use cases but also the permissionless essence of Bitcoin that allows for such innovations.

Best Quotes

1. "Bitcoin, taking fiat liquidity and going up against this massive pile of unpayable liabilities, that's the story."
2. "I just view it as we're finally, at least in the traditional world, we're opening up the valve for the asset side, for Bitcoin to just kind of Trojan horse onto the asset side."
3. "Bitcoin at 800 billion is irrelevant. Bitcoin at 10 trillion is not."
4. "Bitcoin is, I think, Caitlin Long, a couple of people, David Bailey also loves to put out some hyperbolic, bullish statements, but saying GSIB, a globally systemic bank, is going to collapse because of being short Bitcoin at some point in the next few years."
5. "Bitcoin doesn't waste energy. It actually uses waste energy."
6. "Our entire modern civilization is because we can harness energy, right? And sailor's had eight podcasts on this very topic, so I'm probably not the best one to dive into it."
7. "If you think all this stuff is stupid and it's never going to work, then let the fee market, which is a free market, figure it out."

Conclusion

The podcast episode provides a comprehensive discussion on Bitcoin's increasing integration into the financial system and the philosophical implications of its growth. Dylan presents Bitcoin as an asset that challenges the traditional debt structure and could potentially revolutionize the global economic landscape. The conversation on Bitcoin accelerationism ties into the larger narrative of technological growth and its intersection with economics.

The debate on Ordinals reflects the evolving nature of Bitcoin's use cases and the community's varied responses to such developments. While there are strong opinions on both sides, Dylan's perspective highlights the fundamental principle of Bitcoin as a permissionless system that naturally allows for a wide range of applications, even if they are speculative or controversial.

In conclusion, the podcast episode paints a picture of Bitcoin not just as a cryptocurrency, but as a transformative force in a rapidly accelerating technological and financial world. It suggests that as Bitcoin continues to grow and adapt, it will play a critical role in shaping the future of money, energy, and society at large.

Read original post

The Bitwise Bitcoin ETF (ticker: BITB) has recently marked a significant milestone in the cryptocurrency industry by becoming the first US Bitcoin ETF to publicly disclose the Bitcoin addresses holding its assets. This transparency move allows for verification of actual Bitcoin holdings, a critical factor in assessing the trustworthiness and security of such financial products.

Bitcoin ETFs and Asset Backing

A Bitcoin ETF is an exchange-traded fund that tracks the price of Bitcoin and allows investors to trade shares of the ETF on traditional stock exchanges. One of the concerns with Bitcoin ETFs has been whether they are backed by real BTC as collateral, or if they represent shares backed by "imaginary" BTC, drawing parallels to suspicions around gold ETFs.

The Bitwise Bitcoin ETF has demonstrated a robust approach to collateralization, as it appears to be holding more Bitcoin than required for the underlying shares. This makes it an over-collateralized ETF, arguably one of the safest based on collateral measures.

Public Address Disclosure

Bitwise has published the relevant Bitcoin addresses, which can be verified through blockchain explorers. As of the reporting, these addresses held approximately 12,338 Bitcoin, with a market value of around $510 million. The transparency of Bitcoin's blockchain allows anyone to view the transactions, including the meme-inspired amounts of 69 or 42069 satoshis (satoshis being the smallest Bitcoin unit).

Announcement: Today the Bitwise Bitcoin ETF (BITB) becomes the first U.S. bitcoin ETF to publish the bitcoin addresses of its holdings.

Now anyone can verify BITB's holdings and flows directly on the blockchain.

Onchain transparency is core to Bitcoin's ethos. We're proud to… pic.twitter.com/1JTUh3zvDE

— Bitwise (@BitwiseInvest) January 24, 2024

Potential Risks

Despite the increased transparency, there are potential risks to consider. Public addresses expose the ETF to unsolicited transactions, which could include bitcoins from addresses sanctioned by the OFAC. Additionally, the use of a single signature address, as opposed to native Bitcoin multisig, may pose security concerns. Moreover, proof of reserves does not necessarily guarantee exclusive access or prevent the double pledging of collateral.

in the past two days, our bitcoin etf received 998,085 sats (~$419) across 35 utxos

its negligible compared to the AUM (~$511 million as of yesterday) but those sats are added to NAV and accrue to the benefit of shareholders

if any sats are sent to us from ofac sanctioned… https://t.co/Bw2SWuXnVg

— Hong Kim (@hongkim__) January 26, 2024

Bitcoin's Transparency vs. Privacy

The discussion around Bitwise's ETF also touches on the broader debate between transparency and privacy within the crypto ecosystem. Bitcoin's design favors transparency at the base layer, with privacy-enhancing tools available as additional layers or options. This transparency is contrasted with privacy-focused cryptocurrencies or account-based models like Ethereum, which inherently offer less transparency and auditability.

Towards Enhanced Verification

Bitwise has indicated that publishing on-chain addresses is just the beginning of their efforts to increase public transparency. Future plans include working with firms like Hoseki to provide real-time cryptographic attestations of reserves, further solidifying the trust in their ETF.

Comparison with Gold ETFs

The Bitwise Bitcoin ETF exemplifies the transparency advantage of Bitcoin over traditional assets like gold. Unlike gold ETFs, which rely on assumed safety and physical storage, a Bitcoin ETF can demonstrate actual holdings in real-time, showcasing the benefits of digital assets in terms of transparency and verifiability.

Conclusion and Recommendations

While direct ownership of Bitcoin is generally recommended for those seeking the full benefits of cryptocurrency, the Bitwise Bitcoin ETF represents a viable option for investors constrained to stock-like instruments. The ETF's commitment to transparency and its support for open-source Bitcoin development through profit donations to organizations like Brink, OpenSats, and the Human Rights Foundation, offer additional incentives to consider BITB as an investment vehicle.

Final Thoughts

The Bitwise Bitcoin ETF's public disclosure of Bitcoin addresses marks a significant step towards transparency in the cryptocurrency investment space. With its over-collateralized status and efforts to increase verifiability, BITB sets a new standard for Bitcoin ETFs, despite the inherent risks and challenges associated with the format. This development may serve as a model for future products and contribute to the broader acceptance and integration of cryptocurrencies within traditional financial systems.

Read original post

Key Takeaways

This episode of The Last Trade centers around the momentous occasion of bitcoin ETFs (exchange-traded funds) becoming a reality, marking a significant point in the asset's mainstream adoption. Marty, Michael and Jesse are joined by Larry Lepard and David Foley t0 delve into the potential impact of ETFs on the market, considering the vast amount of RIA (registered investment advisor) money, potentially around $40 to $100 trillion, that could now easily flow into bitcoin.

The ETFs are expected to bring a wave of new capital into the bitcoin market, which has a large portion of its supply in strong hands, suggesting that the tradable supply is significantly lower than the total market cap. This could lead to a supply shock and substantial price increases. Estimates from industry insiders suggest inflows of $13 to $40 billion over the next three years, a figure some believe to be conservative.

The discussion also covers the macroeconomic backdrop, including the possibility of a black swan event catalyzing movements into bitcoin. The speakers believe that the ease of accessing bitcoin through ETFs could lead to a massive shift in asset allocation, especially if there's an upheaval in the bond market.

Other points discussed include the significant role of the ETF in differentiating bitcoin from the broader "crypto" category, the implications of nation-states and large corporations entering the bitcoin market, and the potential for bitcoin to reach prices of $100,000 to $500,000 in the near future.

Best Quotes

1. "There's $100 trillion... that now has the ability to just click a button and buy bitcoin." - This highlights the ease of access and potential influx of capital into bitcoin with ETFs.
2. "We're on the last trade, and we just had the last trade of bitcoin without an ETF." - Signifying the historic transition to a new era for bitcoin investing.
3. "I think people are going to be shocked at the prices that emerge as a result of that fact." - Discussing the potential impact of limited tradable supply and increased demand on bitcoin's price.
4. "I can't see how we're not at $100,000 soon and two to $500 within a year or two." - Predicting significant price increases for bitcoin based on market dynamics.
5. "Is this the crossing the chasm moment for bitcoin?" - Contemplating whether the ETF is the pivotal moment for mainstream adoption of bitcoin.

Conclusion

The episode reflects on the transformative potential of bitcoin ETFs in shaping the future of investment in the digital asset. The speakers articulate a strong bullish stance, grounded in the observation of macroeconomic factors, market dynamics, and historical precedence. They emphasize the importance of differentiating bitcoin from the rest of the cryptocurrency market, especially in light of recent events that have highlighted the need for secure and sound investment strategies.

The introduction of ETFs is seen as a gateway for significant capital inflows, with the potential to cause a supply shock and dramatic price increases. The discussion also brings up the broader implications on global economics, monetary policy, and the potential for bitcoin to be perceived as a refuge in times of economic uncertainty.

Overall, the podcast episode captures the excitement and anticipation of a new chapter in bitcoin's journey, where it may transition from a niche investment to a mainstream financial asset, attracting attention from individual investors, large institutions, and possibly even nation-states.

Read original post

Key Takeaways

The latest episode of Rabbit Hole Recap highlighted a diverse range of topics, focusing on the recent developments around Bitcoin ETFs, personal experiences with fasting, and reflections on the state of the Bitcoin network. Here are some core insights:

• ETF Launch Chaos: Marty and Matt delved into the chaos surrounding the launch of Bitcoin ETFs, discussing the SEC's mishandling, including a compromised tweet announcing ETF approvals and the subsequent confusion. Despite the tumultuous launch, the ETFs are now live, signaling a new era for Bitcoin investment products.
• Personal Endeavors:
  • Fasting: Marty shared his personal journey with a five-day fast, discussing the physical and mental challenges, as well as the benefits, such as weight loss and perspective gains.
  • Travel and Events: The boys shared their excitement for upcoming travels and events, such as the mining summit in Nashville, reflecting the vibrant community and high spirits within the Bitcoin space.
• Bitcoin Network Update: The podcast provided a detailed state of the Bitcoin network, including price updates, mempool size, and predictions about the upcoming difficulty adjustment. This segment underscored the podcast's commitment to keeping listeners informed about technical aspects of Bitcoin.
• ETF Performance and Market Impact: The hosts analyzed the initial performance of various ETFs, with particular attention to fee structures and market inflows. They highlighted the significant role these ETFs could play in the broader Bitcoin and financial markets.
• Support for Open Source Development: The episode celebrated the commitment by certain ETF providers, like Bitwise and Vaneck, to support Bitcoin open source development, thereby reinforcing the importance of contributing back to the ecosystem that underpins these investment products.

Sponsors

Best Quotes

• "What a shit show. A beautiful shit show." - Reflecting on the chaotic ETF launch and the SEC's handling of the situation, this quote encapsulates the mixture of amusement and disbelief at the events that unfolded.
• "Fasting helps put things in perspective." - During a personal discussion on fasting, this quote highlights the introspective and clarifying effects of such an endeavor, demonstrating the hosts' willingness to share personal growth experiences with listeners.
• "The best advertisements for Bitcoin have been not only the SEC's launch, but the ETF launch, the confusion around how they're buying Bitcoin." - Emphasizing the irony in how the missteps of traditional financial institutions serve as unintentional endorsements for the decentralized nature of Bitcoin.
• "We're leaving the gradually phase and entering the suddenly phase." - Speaking on the adoption curve of Bitcoin and the potential impact of ETFs, this quote captures the sense of an impending acceleration in Bitcoin's journey to mainstream acceptance.
• "We need to make freedom money the standard sooner rather than later." - Articulating the urgency for widespread adoption of Bitcoin as a tool for financial freedom, this quote serves as a call to action for the community.

[

The Red Sea Conundrum: Navigational Challenges and Coalition Efforts

Recent developments in the Red Sea region have caused significant changes in maritime routes, with over 100 vessels opting to bypass the Red Sea.

TFTC – Truth for the CommonerStaff

](https://tftc.io/red-sea-traffic/)

Conclusion

The podcast episode provided a rich and multi-faceted discussion of recent events in the Bitcoin space. The hosts navigated through the ETF launch debacle with a mixture of criticism and humor, while also touching upon the personal disciplines that help maintain balance in the midst of industry chaos. Amidst technical updates and predictions, the episode shone a light on the importance of supporting the open source community that keeps Bitcoin strong. Ultimately, the conversation underscored a critical transition point for Bitcoin, as it moves from the fringes into a period of rapid and unprecedented growth. The overarching message is one of perseverance and focus, as the Bitcoin community continues to push for wider adoption and recognition of Bitcoin as a tool for freedom in an increasingly turbulent world.

Timestamps

0:00 - Intro

3:49 - Matt is in a location
9:31 - Dashboard
11:47 - SEC shitshow
23:18 - ETF inflows
33:32 - ETF blocked
46:19 - GBTC
48:20 - Fedimint
51:28 - Red Sea Coalition
1:00:48 - Boosts

Read original post

In a recent interview at CNBC's Squawk on the Street, former Securities and Exchange Commission (SEC) Chair Jay Clayton, now a CNBC contributor, provided valuable insights into the anticipated decision on the approval of a Bitcoin ETF, the SEC's cybersecurity posture, and the future of Bitcoin's regulatory environment.

Clayton expressed confidence in the inevitability of a Bitcoin ETF approval, stating that the legal and oversight concerns that initially complicated such a move have now been largely addressed. He indicated that the understanding of Bitcoin's mechanisms, including mining, costs, and global trading, has significantly improved. Furthermore, he highlighted that market surveillance by financial institutions has reached a level where they can confidently monitor for and minimize market manipulation within the Bitcoin space.

The former SEC chair also touched on the recent security breach of the SEC's Twitter account, emphasizing the importance of operational resilience and cyber hygiene for all organizations, including regulatory agencies like the SEC. Clayton pointed out that the SEC has recovered operationally and is now focused on remediation, fact-finding, and strengthening its systems to prevent future incidents. He suggested that while the irony of the breach is not lost, given the SEC's role in promoting strong cybersecurity and market integrity, it serves as a reminder that constant vigilance is necessary.

The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.

— Gary Gensler (@GaryGensler) January 9, 2024

Regarding the potential impact of the breach on the SEC's decision timeline for Bitcoin ETF applications, Clayton reassured that the incident should not cause any delays, as the SEC is operationally back to where it was before the compromise.

Clayton refrained from commenting on the reliability of Bitcoin itself but emphasized that the dynamics of Bitcoin trading are now better understood, with more transparent disclosures. He also differentiated the Bitcoin distributed ledger from the broader issues of fraud and malpractice observed in the offshore crypto ecosystem.

On the topic of regulatory communication via social media, Clayton underscored the need for accuracy and reliability in the dissemination of information, acknowledging the challenge of balancing speed with trustworthiness in the digital age.

In conclusion, Jay Clayton's interview shed light on the ongoing developments in the regulation of digital assets and the operational resilience of regulatory bodies like the SEC. As the financial world evolves with technology, Clayton's insights suggest a future where Bitcoin and other cryptocurrencies become integrated into the regulated marketplace, albeit with heightened scrutiny and improved security measures.

Read original post

Introduction

The bitcoin community is currently on high alert, anticipating a decision from the U.S. Securities and Exchange Commission (SEC) regarding the approval or potential rejection of spot Bitcoin ETFs (exchange-traded funds). With the sentiment leaning towards an expected approval, it is crucial to understand the potential implications this decision could have on the cryptocurrency landscape.

ETF Approval Process and Current Status

ETFs are investment funds traded on stock exchanges, much like stocks. A spot Bitcoin ETF would allow investors to gain exposure to the actual price of Bitcoin without owning the cryptocurrency directly. The SEC's approval process involves a thorough review of filings from the exchanges that list these ETFs. Presently, there is positive momentum in the process, with active engagement between the SEC and ETF issuers, as well as up-to-date filings from the exchanges.

Possible Approval Scenarios

The SEC could either approve multiple ETFs at once or select a few for initial approval. The precise outcome remains uncertain, but the positive dialogue between the SEC and issuers is a promising sign. Once approved, the ETFs' S-1 registration statements must also be made effective before they can be listed and begin trading.

Market Impact and Price Speculation

The approval of spot Bitcoin ETFs is expected to be bullish for Bitcoin's price, as it would introduce a new class of investors to the market. However, the impact on Bitcoin's price is challenging to predict and will depend on the amount of capital flowing into the ETFs. Even a successful ETF launch could only represent a small percentage of Bitcoin's current market cap, which may limit the extent of any price inflation.

via bitbo

Investment Dynamics and Fee Structures

The introduction of spot Bitcoin ETFs is likely to attract additional investors, particularly those who prefer not to hold Bitcoin directly. Competition among ETF providers could lead to varied expense ratios and fees, which may converge over time due to market forces. The management of these fees will be crucial in determining the returns for investors.

Industry Reactions and Strategic Moves

The approval of Bitcoin ETFs could have varying effects on different market participants. Some financial institutions may remain on the sidelines, adhering to their core business models, while others that are more innovative may embrace the new product offerings. Companies like Coinbase and Robinhood might benefit indirectly as the ETFs could increase overall demand for Bitcoin. Additionally, traditional exchanges may also see growth opportunities as the need for hedging and derivatives trading expands with the entry of larger institutional participants.

Conclusion

The potential SEC approval of spot Bitcoin ETFs stands as a significant milestone for the cryptocurrency industry. It could lead to broader adoption of Bitcoin by traditional investors and a subsequent increase in demand. However, the actual impact on Bitcoin's price and the fees associated with these ETFs remain to be seen. The decision's ripple effects will undoubtedly influence the strategies and offerings of exchanges, asset managers, and other financial services providers. As the crypto community awaits the SEC's decision, the market remains in a state of anticipation for what could be a transformative development in the crypto asset space.

Read original post

The bitcoin price is up more than $3,000 (>7%) today, at the time of writing. The animal spirits are building in anticipation of the approval of the first spot bitcoin ETFs and everyone and their mother is refreshing their Twitter feeds to get the latest details on filings and fund fees in an attempt to guess who will be the front runner out of the gate.

A few things are undeniable:

1. Bitcoin is a permissionless system and anyone who wants to participate can do so, even Wall Street.
2. The ETF will be very bullish for the price of bitcoin.
3. There will be a large number of people who prefer to get exposure to the ETFs over holding their own keys.

With all of that being said, it will be, in my opinion, extremely important to recognize that a ton of noise will be tagging along with the butt ton of money that Wall Street seems primed to funnel into bitcoin via their products. As many have been saying over the last couple of weeks, bitcoin is about to cross the chasm and be thrust into the mainstream in a way that it has not been throughout the first 15 years of its existence. Crossing the chasm will coincide with a new cohort of people who are new to bitcoin and are here to fix it.

They'll deride early bitcoiners as unsophisticated amateurs who didn't understand the asset that they were dealing with. They'll claim that they know what bitcoin needs and the proper ways in which to incorporate it into the world. And they'll completely misunderstand the beauty of a truly peer-to-peer distributed cash system built on an open source protocol that enables new ways of receiving, holding and sending money in the Digital Age.

Many early bitcoiners are going to be faced with the pull of complacency in the coming years. The lure of massive bag pumps is going to make it easier for some to concede ground in the fight for the separation of money and states/central banks. The appreciation of their net worth may cause pause when feeling the urge to push back against the over-encroachment of the government and supranational regulatory agencies. The fast talking suits may successfully bamboozle many into believing it isn't an imperative to leverage bitcoin's native properties, particularly self-verification, when interacting with counterparties. A willingness to concede sovereignty in the face of uncomfortable battles due to social pressure and threat of persecution via the state may materialize.

Try not to be one of those bitcoiners. Bitcoin's purpose is much higher than increasing the net worth of those who hold it (or hold exposure to it). Bitcoin is freedom money and the siren calls of wealth and convenience are on their way to undermine the mission. Don't get distracted. Our children will be free.

Don’t let the money distract you from the end goal: separation of money and trusted third parties.

— Marty Bent (@MartyBent) January 7, 2024

Final thought...

Day 1 of the 5 day fast is done and I'm feeling pretty good.

Read original post

Introduction

The financial market has been keenly observing the developments surrounding the listing of Bitcoin exchange-traded funds (ETFs). The period between January 8 and January 10 has been identified as a critical window for the Securities and Exchange Commission (SEC) to make its ruling on a series of applications for the listing of spot Bitcoin ETFs.

SEC Review Process

The SEC is currently reviewing applications under a process known as 19b-4, which entails a request for a rule change by exchanges and issuers. The first deadline for this process is on January 10, concerning the application from Ark Invest, led by Cathy Wood, and 21Shares. The expectation is that the SEC will approve the rule changes, allowing the listing of spot Bitcoin ETFs. This approval would mark the first of two steps required for these ETFs to begin trading.

Applicant Overview

There are eleven filers seeking to launch Bitcoin ETFs. Among the notable applicants are Grayscale, with $26 billion in assets, and Blackrock. Fee structures vary significantly among the applicants, with some offering fee waivers down to 0%, and others like Bitwise and Van Eck offering expense ratios as low as 0.24% and 0.25%, respectively.

Capital Raising and Market Impact

Many of the applicants have already raised seed capital, though the exact amounts are not public. There is speculation of billions of dollars ready for investment upon approval of the ETFs. The SEC has mandated that these ETFs can only operate on a cash creation basis, meaning that the funds can only accept cash, which will then be used to purchase Bitcoin. This requirement is expected to lead to significant purchases of spot Bitcoin by market makers and Wall Street traders.

Timeline for Trading

If the SEC approves the 19b-4 applications, the next step would be for the issuers to have their S-1 prospectuses approved. Once both steps are complete, trading of the ETFs could begin within 24 hours. Rumors suggest that trading could start as soon as the week following approval or the latest, the subsequent week.

Bitcoin Price Considerations

Bitcoin has seen a 160% increase over the past twelve months, partly attributed to anticipation of the ETF approvals. It remains uncertain how much of this increase has already factored in the potential impact of the ETFs. While some of the run-up in Bitcoin's price may be due to investors anticipating the ETF approvals and the subsequent buying by asset managers, it is unlikely that the funds have already purchased Bitcoin. Thus, there may still be room for price movements once the ETFs begin trading.

via Bitbo.io

Probability of Approval

The consensus among market observers has shifted towards the expectation of SEC approval. However, there is still a non-zero chance of rejection, estimated by some at around 5%. The extensive time and effort invested by the SEC and issuers in the application process indicate a strong likelihood of approval.

Equal Treatment of Applications

The expectation is that if one Bitcoin ETF is approved, all eleven will be approved to maintain a level playing field. The SEC has mechanisms to ensure simultaneous launches, as seen with Ethereum futures ETFs.

Conclusion

The financial market awaits the SEC's decision on the listings of spot Bitcoin ETFs with anticipation. The approval is expected to have a considerable impact on the market, potentially leading to large-scale purchases of Bitcoin and further democratization of cryptocurrency investments through more accessible fee structures. The timeline for trading could see these ETFs on the market as early as this week, pending SEC approval of the necessary regulatory steps.