Why One Crypto Company Is Suing the SEC

The Breakdown

Blockworks

Investing, Business

4.8 • 786 Ratings

🗓️ 26 October 2021

⏱️ 15 minutes

🔗️ Recording | iTunes | RSS

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Summary

This episode is sponsored by NYDIG. At Messari’s Mainnet conference in September, rumors flew that the U.S. Securities and Exchange Commission had served a subpoena on a decentralized finance (DeFi) protocol founder moments before he was set to speak on stage. The rumors were confirmed late last week when Terraform Labs and CEO Do Kwon filed a lawsuit against the SEC for due process violations. On today’s episode, NLW breaks down the lawsuit, the community’s response and what the precedent and outcome might mean for the industry going forward. NYDIG, the institutional-grade platform for bitcoin, is making it possible for thousands of banks who have trusted relationships with hundreds of millions of customers, to offer Bitcoin. Learn more at NYDIG.com/NLW. Enjoying this content? SUBSCRIBE to the Podcast Apple: https://podcasts.apple.com/podcast/id1438693620?at=1000lSDb Spotify: https://open.spotify.com/show/538vuul1PuorUDwgkC8JWF?si=ddSvD-HST2e_E7wgxcjtfQ Google: https://podcasts.google.com/feed/aHR0cHM6Ly9ubHdjcnlwdG8ubGlic3luLmNvbS9yc3M= Join the discussion: https://discord.gg/VrKRrfKCz8 Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW “The Breakdown” is written, produced by and features NLW, with editing by Rob Mitchell, research by Scott Hill and additional production support by Eleanor Pahl. Adam B. Levine is our executive producer and our theme music is “Countdown” by Neon Beach. The music you heard today behind our sponsor is “Exit” by Isaac Joel. Image credit: Brendan Hoffman/Getty Images News, modified by CoinDesk.

Transcript

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0:00.0	Look, if the SEC is going to regulate by enforcement, first, they have to play by the enforcement
0:05.3	rules, that's just table stakes, and two, they can't really expect that this extremely well-funded
0:10.7	industry is just going to roll over.
0:13.9	Welcome back to The Breakdown with me, NLW.
0:17.9	It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.
0:25.0	The breakdown is sponsored by Nidig and produced and distributed by CoinDesk.
0:31.6	What's going on, guys? It is Monday, October 25th, and today we are discussing why one crypto company is suing the SEC.
0:41.5	If you remember about a month ago, there was quite the stir at Masari's main net conference
0:47.7	in New York. At around noon on the first day of the event, one of the attendees tweeted that they had seen the SEC serve
0:56.4	someone who was about to go be a panelist just before their panel. Now, that tweet didn't reveal
1:02.7	who had been served, and there was immediately a ton of question and speculation about whether
1:08.1	it was actually true. Now, my instinct was to believe it, given that I
1:12.1	knew the person who had tweeted at least, if not the person that they were discussing, and a
1:16.5	couple hours later, Ryan Selkiss, the founder and CEO of Masari, seemed to confirm, again,
1:22.2	without giving any details that the SEC had, in fact, served someone at his conference. He jokingly, or maybe not jokingly,
1:30.2	said that when we look back and ask when he exactly decided to run for the Senate, that was it.
1:35.6	Either way, like I said, it's been about a month now and we haven't got any confirmation. That was
1:40.2	until Friday. Terraform Labs, the makers behind Terra and Luna, and its CEO, Doe Kwan,
1:47.8	filed a lawsuit against the SEC. So, what is this all about? Well, first, let's talk about the
1:54.7	specific product in question. The relevant product here is the Mirror Protocol, which is a
2:00.3	D-Fi platform that mince synthetic
2:02.2	stocks that mirror the price of U.S. stocks.
	...

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