SEC's Crypto Enforcement Dilemma

Marisa Tashman, policy counsel at Blockchain Association, analyzes the US Securities and Exchange Commission’s (SEC) decision to name nine tokens as securities and investigate whether Coinbase lists securities. Show highlights: 

• why the SEC named tokens as securities in an insider trading case where no exchanges or token teams are listed as defendants 
• what happens if the Coinbase insider trading case is settled or goes to court
• why the SEC’s actions should be considered “regulation by enforcement” 
• whether there is any process to force the SEC to reveal its reasoning for calling a token a security
• why Marisa thinks the SEC is actively harming US investors with its crypto policy
• how Coinbase is handling the SEC’s investigation
• what Marisa thinks of Coinbase’s listing process
• why the Cynthia Lummis-led crypto regulatory framework is a good start
• what Marisa believes will happen in the crypto regulatory landscape in the near future

Thank you to our sponsors!

1inch: https://1inch.io/

Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021 

 

Episode Links

 

Marisa Tashman

• https://twitter.com/mtash

 

Blockchain Association

• https://theblockchainassociation.org/ 

 

Coinbase

• SEC investigation into listing unregistered tokens: https://www.bloomberg.com/news/articles/2022-07-26/coinbase-faces-sec-investigation-over-cryptocurrency-listings
• SEC insider trading case: https://www.sec.gov/news/press-release/2022-127
• Coinbase does not list securities blog post: https://blog.coinbase.com/coinbase-does-not-list-securities-end-of-story-e58dc873be79 
• Coinbase petition: https://www.sec.gov/rules/petitions/2022/petn4-789.pdf 

 

SEC Regulation by Enforcement Response

• CFTC Commissioner: ​​https://twitter.com/CarolineDPham/status/1550159347984044033
• Lindsay Lin: https://twitter.com/lindsayxlin/status/1552320370019106822?s=21&t=4OaAjw3r8NlH23ppWiVK1w 
• Jake Chervinsky: https://twitter.com/jchervinsky/status/1550515627961589762?s=20&t=gGwDPAJzZXSu6Gwc9agDOg 
• Hester Peirce: https://www.coindesk.com/policy/2022/05/03/hester-peirce-pushes-back-against-secs-plans-to-nearly-double-crypto-enforcement-staff/ 
• Matt Levine: https://twitter.com/matt_levine/status/1550202036570017792?s=20&t=e1g8U-V4K_ixd1vJoRc9gA 
• Chair Gary Gensler wanting crypto exchanges to register as securities exchanges: https://www.bloomberg.com/news/articles/2022-07-28/sec-chair-gensler-hardens-line-on-crypto-exchange-registration?sref=m9L277rN
• https://twitter.com/garygensler/status/1552700562533236739?s=21&t=mNENJd2qeQYkeFFdZqWUPA

 

Gillibrand x Lummis Crypto Regulatory Framework

• https://www.gillibrand.senate.gov/news/press/release/-lummis-gillibrand-introduce-landmark-legislation-to-create-regulatory-framework-for-digital-assets 

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