Unchained Prometheum and Paradigm in Debate: Can the Status Quo Work for Crypto? - Ep. 511
Jun 27, 2023
Aaron Kaplan, co-CEO of Prometheum, and Rodrigo Seira, special counsel at Paradigm, dive into the heated debate on crypto regulation. Kaplan argues that Prometheum is paving a compliant path for digital assets, while Seira challenges the feasibility of the current SEC framework. They discuss the complexities of token classification, the relevance of the Howey Test, and the implications of SEC licensing. The episode highlights diverging views on what constitutes a successful crypto exchange and the future of regulatory compliance in the industry.
AI Snips
Chapters
Transcript
Episode notes
License But No Business
- Prometheum, despite having a special-purpose broker-dealer license and ATS approval, faces a significant challenge.
- They lack a functional business due to the inability to trade tokens under current regulations.
Form D Filings and Token Classification
- Rodrigo Seira challenges Aaron Kaplan's assertion that Form D filings for convertible instruments classify subsequent tokens as securities.
- Seira argues the instruments, like SAFTs, are securities, but the tokens themselves aren't, as per their design.
Protecting Investors vs. Fostering Innovation
- Protecting American investors and fostering US crypto innovation requires thoughtful legislation.
- Focusing on Prometheum as a compliance model distracts from addressing the regulatory gap.