Unchained

Why Senator Pat Toomey Thinks SEC Chair Gary Gensler Is Wrong About Crypto - Ep. 399

Sep 23, 2022

Pat Toomey, U.S. Senator for Pennsylvania, dives deep into the world of crypto regulation. He argues against the SEC's 'regulation by enforcement' approach and emphasizes the need for clarity regarding what defines a security. Toomey discusses the implications of proof of stake models and advocates for a balanced framework for stablecoins, steering clear of outright bans on algorithmic versions. He highlights the lessons learned from crypto collapses and critiques existing government reports on digital currencies, expressing concerns about innovation flight from the U.S.

41:42

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Episode guests

Pat Toomey

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Episode notes

Intro

2min

Navigating Crypto Regulation

8min

Challenges in SEC Regulation and Emerging Legislation on Stablecoins

4min

Navigating Stablecoin Regulation

13min

Challenges in U.S. Crypto Regulation

6min

Current Turmoil in the Crypto Industry: Legal Battles and Auctions

2min

Cryptocurrency Market Developments and Strategic Changes

6min

Pat Toomey, U.S. Senator for Pennsylvania, talks about legislation in the crypto industry, how to determine if something is a security, the future of CBDCs, and much more.

Show highlights:

the structural differences between crypto tokens and securities
why Sen. Toomey is demanding crypto legislation
why “regulation by enforcement” does not provide clarity
how to determine if a token is decentralized
whether proof of stake consensus turns tokens into securities
Sen. Toomey’s take on the new framework for stablecoin regulation
whether it is appropriate to ban algorithmic stablecoins
the importance to make disclosures so that regular users understand the risks of crypto
how the collapse of Terra and other crypto companies like Voyager and Celsius affected lawmakers’ perception of crypto
whether the US Treasury made a mistake with the Tornado Cash sanctions
what the government should take into account in regards to a central bank digital currency (CBDC)
why he believes the White House reports on crypto are not helpful and whether entrepreneurial talent is migrating to other countries
the likelihood of any of the crypto bills passing soon