S10 E2 | The U.S. Election and State of Crypto Policy w/Amanda Tuminelli (DeFi Education Fund)
Oct 31, 2024
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Amanda Tuminelli, Chief Legal Officer at the DeFi Education Fund, dives into the evolving landscape of crypto policy amid upcoming U.S. elections. She discusses key lawsuits against the SEC, emphasizing their impact on the regulatory framework. The shifting political dynamics around crypto, especially the surprising bipartisan support, are explored. Amanda also reflects on tailored regulations for DeFi and the importance of educating lawmakers, giving a hopeful glance at the future of the industry as it navigates these challenges.
Amanda Tuminelli discusses the ongoing lawsuits against the SEC that challenge the classification of token airdrops as securities, highlighting the need for clarity in regulations.
The political landscape shows increasing polarization on crypto views, with some lawmakers incorporating pro-crypto policies, indicating the upcoming election's potential impact on regulatory frameworks.
Deep dives
Lawsuits Against the SEC
A significant focus is on the lawsuits filed against the SEC by the DeFi Education Fund, particularly regarding the treatment of token airdrops as securities. Amanda Tuminelli clarifies that the SEC has not officially classified the airdropped tokens as securities, and the lawsuits are categorized as pre-enforcement challenges. The case involving Beba, an apparel company that conducted a token airdrop, argues that such free airdrops should not be classified as securities offerings. Tuminelli emphasizes that the legal concept of a declaratory judgment allows them to seek clarity from the court before any alleged violations occur, challenging the SEC's enforcement patterns without clear regulations.
Insights from Congressional Hearing on DeFi
Tuminelli participated in a congressional hearing on DeFi, aimed at educating lawmakers and discussing the benefits and challenges associated with decentralized finance. While acknowledging that skepticism still exists among some committee members, she found value in explaining how DeFi offers significant advantages and operates outside traditional regulatory frameworks. The hearing highlighted the need for regulations tailored specifically to DeFi technologies, as existing rules that focus on intermediaries are ill-suited for this new landscape. Tuminelli and her co-panelists made compelling arguments for why DeFi represents a positive shift in the financial ecosystem, stressing the importance of ongoing dialogues with Congress.
The Political Landscape and Crypto
The conversation delves into how political parties are increasingly polarized regarding their views on cryptocurrency, with Republicans generally appearing more favorable towards crypto initiatives. Tuminelli highlights that several Republican candidates are incorporating pro-crypto platforms into their campaigns, suggesting a growing recognition of crypto's significance by lawmakers. She also notes that certain progressive Democrats understand the values embedded in crypto, demonstrating that support transcends party lines at times. The upcoming election is expected to play a critical role in determining the regulatory environment for cryptocurrency, making it vital for industry participants to engage with their representatives.
The Need for Industry Participation and Legal Guidance
As the regulatory landscape remains uncertain, Tuminelli encourages crypto founders and developers to engage with policymakers to clarify their interests and advocate for sensible regulations. She underscores the importance of professional legal counsel for projects operating in the crypto space, especially given the ongoing litigation and evolving SEC guidelines. The DeFi Education Fund offers resources and support for individuals seeking to navigate policy discussions with Congress, aiming to foster a better understanding of the benefits of crypto. Tuminelli concludes that building bridges between the crypto community and lawmakers is essential for fostering an innovation-friendly environment.
In this episode, we’re speaking with Amanda Tuminelli, Chief Legal Officer at DeFi Education Fund, about the latest in crypto policy and what she’s expecting to see leading up to the election next week.
We start out by recapping some of the lawsuits Amanda has helped file against the SEC through DeFi Education Fund and her testimony at the first congressional hearing on DeFi last month, and then we talk about what’s on her radar right now in terms of what the SEC is doing and how she expects the election to impact the state of crypto moving forward.
Amanda was nominated by Andy Boyan and voted onto the podcast by Nicole D’Avis, Andy Boyan, Defi Beats, Disruption Joe, Meg Lister, and Irina Marinescu.
DISCLAIMER: The information in this video is the opinion of the speaker(s) only and is for informational purposes only. You should not construe it as investment advice, tax advice, or legal advice, and it does not represent any entity's opinion but those of the speaker(s). For investment or legal advice, please seek a duly licensed professional.
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