Unchained

Just a Coincidence? Coinbase and Polygon Lawyers See Bad Omens in SEC Crackdown - Ep. 458

Feb 21, 2023

Paul Grewal, Chief Legal Officer at Coinbase, and Rebecca Rettig, Chief Policy Officer at Polygon Labs, dive into the SEC's recent crackdown on crypto. They discuss the fallout from FTX, questioning whether the SEC's actions threaten innovation in the U.S. They address the complexities of stablecoin regulation, the potential classification of certain stablecoins as securities, and the chilling effect on the market. Both express concerns about pushing crypto innovation offshore, which could become a national security issue.

01:09:33

Creator website

Episode guests

Rebecca Rettig

Paul Grewal

AI Chapters

Episode notes

Intro

3min

Navigating Crypto Regulation After FTX

21min

Regulatory Actions and Speculations Surrounding Paxos and Stablecoins

5min

Navigating the Complexities of Stablecoin Regulation

2min

Regulatory Perspectives on Stablecoins and Their Implications

4min

Navigating Regulatory Challenges in Crypto

9min

Navigating Crypto Regulations: Insights from the EU and UK Frameworks

3min

SEC's Rule on Crypto Custodians

22min

A settlement with Kraken, a proposed custody rule, and lawsuits against Paxos and Terraform Labs. “This week has been a very long year,” said Polygon Labs Chief Policy Officer Rebecca Rettig. She joins Coinbase Chief Legal Officer Paul Grewal to interpret what’s going on with the SEC. Is it just one big push to cripple the crypto industry? “The fact that we’re all … trying to read tea leaves speaks to a failure in the system that relies upon one-off enforcement actions rather than a public rulemaking process,” said Grewal.

Show highlights:

how the implosion of FTX sped up regulatory actions
whether the SEC will go after other staking services
why the statement that crypto firms should just register with the SEC is “disingenuous”
what seems to be behind the decision to target the BUSD stablecoin
whether SEC enforcement actions will be detrimental to innovation in the U.S.
what features would make stablecoins securities
why the SEC is alleging that the UST stablecoin is a security
why “expansion of jurisdiction” is at the heart of the SEC’s proposed crypto custody rules
why Paul thinks that forcing crypto innovation offshore could become a national security issue for the U.S.