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.
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Regulatory Climate Change
- FTX's collapse sped up regulatory actions, creating pressure on regulators to act.
- This regulatory pressure, combined with the crypto market downturn, makes the recent actions predictable.
Limited Insight of Enforcement Actions
- Enforcement actions offer limited insight and lack precedential value.
- Kraken's settlement provides some clarity but mostly raises questions about the SEC's broader approach to staking.
Crypto Registration Challenges
- Registering crypto products with the SEC is complex and challenging, not a simple form submission.
- Many projects find registration impractical due to burdens and unclear regulatory paths.