Law of Code #168 - December crypto regulatory developments in review with Jonathan Schmalfeld
Dec 29, 2025
Join Jonathan Schmalfeld, Policy Director at The Digital Chamber and crypto regulation expert, as he dives into the latest U.S. crypto developments. He discusses the SEC's tokenization moves and the CFTC's acceptance of crypto collateral. The conversation explores intriguing topics like ongoing crypto tax proposals, DeFi governance conflicts, and the implications of quantum computing on Bitcoin's future. Schmalfeld emphasizes the strategic importance of viewing crypto as essential financial infrastructure, not just a niche market.
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SEC Embraces Tokenized Market Infrastructure
- The SEC is actively adapting market-structure rules to enable tokenization of public market entitlements.
- This signals a regulatory shift toward embracing blockchain as market plumbing rather than forcing crypto into old workflows.
Privacy Moves From Bug To Feature
- The SEC hosted a privacy roundtable and signaled that financial privacy is a regulatory priority.
- Regulators now treat privacy as a feature to enable adoption, not a problem to be suppressed.
CFTC Integrates Crypto Into Derivatives
- The CFTC is integrating crypto into derivatives and explicitly allowed crypto and tokenized treasuries as collateral.
- This reflects TradFi adapting to crypto rails rather than forcing crypto to mimic legacy processes.