Is Gary Gensler on a Mission to Put Crypto Down for Good? - Ep. 457

Unchained

Laura Shin

News, Tech News, Business News

4.6 • 1.3K Ratings

🗓️ 17 February 2023

⏱️ 48 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Mike Selig, counsel at Willkie Farr, has plenty to talk about this week, with a slew of actions from Gary Gensler’s SEC putting the future of crypto in the U.S. in question. From Kraken’s custodial staking settlement to action against BUSD issuer Paxos, the former CFTC law clerk voices concern that coordination among regulators could choke off the industry’s growth. Hear how Selig thinks Gensler’s SEC is working to bring crypto markets “within the regulatory perimeter.” Show highlights: whether regulators are using the FTX case to go against crypto as a whole what likely caused the NYDFS action against Paxos for BUSD whether there’s a coordinated effort to undermine the crypto markets how issuers could argue that stablecoins aren’t securities why there are limited implications for staking as a whole after Kraken’s SEC settlement how the regulators are “discouraging access and participation in crypto markets at the banking level” the differences between Gary Gensler’s SEC and that of his predecessor, Jay Clayton how the Gensler administration is skeptical of governance and DAOs why the SEC’s crypto custody rule proposal is refreshing, albeit not perfect Thank you to our sponsors! Crypto.com Guest Mike Selig, counsel at Willkie Farr Twitter Links Unchained: Circle Told NYDFS That Paxos-Issued BUSD Wasn’t Fully Backed SEC Wants Tougher Rules for Crypto Custody CoinDesk: SEC Proposal Could Bar Investment Advisers From Keeping Assets at Crypto Firms WSJ: Crypto Firm Paxos Faces SEC Lawsuit Over Binance USD Token Regulator Orders Crypto Firm Paxos to Stop Issuing Binance Stablecoin - WSJ The Block: SEC action against Paxos paints regulatory target on stablecoins Tom Wan on the ramifications of Paxos being ordered to stop issuing BUSD Bloomberg: US Crackdown Seeks to Push Crypto Back to the Fringes of Finance Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hi, everyone. Welcome to Unchained, your no-hate resource for all things crypto. I'm your host,
0:08.7	Laura Shin, author of The Crypto Pients. I started curving crypto seven years ago, and as a senior
0:14.2	editor, Forbes was the first mainstream media reporter to cover cryptocurrency full-time. This
0:18.9	is the February 17th, 2023 episode of Unchained. Thank you for listening. If you've been enjoying
0:25.2	Unchained, please leave us a review on Apple Podcast. It's a great way to help others find the show.
0:31.6	With the Crypto.com app, you can buy, earn, and spend crypto in one place. Download and get $25
0:37.7	with the code Laura, link in the description. Crypto moves at lightning speed. For the latest crypto
0:44.0	updates, be sure to subscribe to our daily newsletter at unchainedcrypto.substac.com. Again,
0:50.4	that's unchainedcrypto.substac.com. Today's guest is Mike Selig,
0:56.0	Council at Wilkie Far. Welcome, Mike. Good to be here. There's been a lot of activity from the SEC
1:02.9	in the crypto sector. In the last week, we've seen a ton of enforcement actions,
1:08.4	but before we get into all the details around all of these events, what would you say is sort of
1:14.0	the top headline, meaning like, what's the takeaway from all these different actions?
1:19.2	Yeah, and just a quick disclaimer to all the announced out there. I am not your lawyer.
1:23.5	I am a lawyer, but nothing I say today will be legal advice. So the general vibe, I think,
1:29.3	right now, is that there's some coordination amongst regulators, both in the Treasury Department,
1:34.6	the prudential banking regulators, and at the market regulator level with the SEC and CFTC.
1:40.3	And there appears to be some backlash, really, from the FTX events, where we had a number of
1:47.1	incidents within the FTX organization, fraud, mismanagement of customer funds, all of these
1:52.8	things that regulators at the market level and at the banking level are concerned about. And so they
1:57.5	want to institute measures to protect that. But there's also been this concern that the opportunities
2:04.3	being used by regulators to really cut off access to the crypto markets. And we had the custody
	...

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