Unchained Is Gary Gensler on a Mission to Put Crypto Down for Good? - Ep. 457
Feb 17, 2023
Mike Selig, counsel at Willkie Farr & Gallagher, dives into the mounting regulatory pressures facing crypto in the U.S. He highlights the SEC's aggressive stance under Gary Gensler, particularly in light of cases like Kraken and Paxos. Selig raises concerns about potential coordinated efforts to regulate the industry out of existence, especially regarding stablecoins. He also discusses how the SEC’s recent rules could redefine custody practices, emphasizing the delicate balance between regulation and innovation in the crypto landscape.
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Coordinated Regulatory Response to FTX
- Regulators seem to be coordinating efforts across Treasury, banking, and market regulation (SEC and CFTC).
- This coordinated response follows the FTX events and aims to protect markets, but some worry it's cutting off crypto access.
FTX as Justification to Target Crypto
- Regulators may be using FTX as justification to target crypto itself, not just FTX's specific issues.
- This raises concerns that the government views the problems at FTX as inherent to crypto.
NYDFS Action: Targeting Binance through Paxos?
- The NYDFS action against Paxos for BUSD may be aimed at Binance.
- Paxos, regulated by NYDFS, became the target due to its partnership with Binance.