The US vs. Crypto: Jake Chervinsky on Crypto's Legal and Regulatory Status - Ep. 635
Unchained
Legal Insights on SEC Cases and Staking Strategies
This chapter explores the legal intricacies of the SEC's cases against cryptocurrency platforms, focusing on Coinbase's staking services and the application of the Howey test. It also examines the potential implications of recent judicial decisions on the future of crypto asset regulations, particularly concerning airdrops.
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Jake Chervinsky, chief legal officer of Variant, discusses the current state of crypto regulation, touching on several ongoing legal and regulatory issues in the crypto space, including Uniswap’s Wells notice, the Coinbase case, the Tornado Cash case, the Ethereum Foundation investigation and more. Chervinsky argues that the government's approach to these cases is often misguided, particularly in instances where they hold software developers liable for how third parties use their software. He also discusses the potential implications of the government's case against Tornado Cash, suggesting that it could have far-reaching consequences for all open-source software developers.
Chervinsky also delves into the SEC's ongoing investigations into the Ethereum Foundation, as well as the recent IRS draft form that lists unhosted wallets as a type of broker. He expressed concern about the potential impact of these investigations on the crypto industry, but remained optimistic about the future of DeFi in the US.
Show highlights:
- How the Tornado Cash case could set a critical precedent for open-source software
- How the government’s Tornado indictment reveals a fear of unsurveilled financial systems, according to Jake
- What the implications of the Tornado Cash case could be for the broader DeFi space
- What lessons can be learned from the $62 million hack of Munchables on Blast
- How to address the challenge of malicious actors like North Korea using a permissionless system
- Whether Coinbase's staking services are considered a securities offering
- Whether Judge Failla’s ruling on Coinbase acting as a broker could be overturned
- Why Jake thinks the SEC will face significant challenges in its potential case against Uniswap Labs
- How the Debt Box case order impacts the SEC’s reputation, according to Jake
- How the industry is pushing back against the SEC’s regulation by enforcement with its own lawsuits for Lejilex and Beba
- The future of DeFi in the U.S. and its potential for success, according to Jake
- Why Jake believes the SEC will deny Ether ETFs and why he disagrees with the latest stablecoin regulation bill by Lummis and Gillibrand
- How the U.S. Presidential election could impact the future of the crypto industry
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Guest:
- Jake Chervinsky, Chief Legal Officer at Variant
- Previous appearances on Unchained:
- Why the SEC vs. Ripple Order Is Now About 2 Things: Coinbase and Congress
- The Chopping Block: Jake Chervinsky on How the SEC Has Lost Credibility
- All Things Crypto Regulation With Jake Chervinsky
- Everything You Need to Know About the Looming Battle Over Privacy in Crypto
- Can Crypto Be a Force in the Midterms? Yes, Say Kristin Smith and Jake Chervinsky
Links
Tornado Cash
- Jake’s amicus brief with Amanda Tuminelli
- Unchained: Given the Sanctions on Tornado Cash, Is Ethereum Censorship Resistant?
- Unchained: Is This the End of DeFi? Why the US Government Is Going After Tornado Cash
Munchables exploit
SEC cases:
- Coinbase
- Unchained:
- Why the SEC’s Case Against Coinbase Is So Significant for Crypto
- Court Rejects Coinbase’s Bid to Dismiss SEC Charges Against It
- Uniswap
- Unchained:
- Gary Gensler’s Case Against Uniswap: Does the SEC Even Stand a Chance?
- SEC Puts DeFi in Its Sights With Potential Uniswap Suit
- Uniswap Blog Post on the Wells notice
- Marvin Ammori Thread on Wells notice
- Ethereum Foundation
- Unchained:
- SEC Investigating Ethereum Foundation Regarding Proof-of-Stake Transition: Report
- The Real Reason Why the SEC Might Be Going After Ethereum
- Debt Box
- Unchained: SEC Sanctioned for ‘Abuse of Power’ in Debt Box Lawsuit
- Beba
- DeFi Education Fund and Beba sue SEC over airdrop policies
- Lejilex
- Lawsuit document
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