The importance of control criteria in crypto legislation with Gabriel Shapiro

Gabriel Shapiro, a crypto lawyer and founder of MetaLeX, joins the Decentralization Research Center’s Connor Spelliscy to discuss market structure legislation, limiting principles for Howey, ancillary assets, and the risks of incentivizing useless tokens.

Timestamps:

02:37 - Are there limiting principles for Howey?

06:11 - Prior Senate draft vs. CLARITY Act: ancillary assets explained

09:29 - Why CLARITY’s framework is more durable

13:53 - Incentivizing rights-less tokens: “race-to-the-bottom stuff”

16:01 - The danger of bad incentives

19:36 - VC token sales: 60% in initial Senate draft vs. 5–20% in House bill

22:28 - Decentralized governance: protections in CLARITY vs. Senate

26:37 - What “amazing” SEC exemptions could look like

28:54 - SEC vs. CFTC: who should regulate token markets

30:32 - The importance of a hard-coded decentralization test

& much more.

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