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.

49:26

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Episode guests

Mike Selig

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Episode notes

Intro

3min

Regulatory Overhaul: The FTX Fallout

8min

Regulatory Impacts on Stablecoins and Market Dynamics

3min

Legal Challenges and Regulatory Clarity in the Stablecoin Space

2min

Analyzing SEC's Staking Settlement and Its Implications

4min

Navigating SEC Regulations in Crypto

12min

Legal Turmoil and Implications for the Crypto Industry

2min

FTX Bankruptcy Developments and Crypto Regulation

7min

Crypto Rally and Legal Drama: Key Updates in the Blockchain World

4min

Mike Selig, counsel at Willkie Farr, has plenty to talk about this week, with a slew of actions from Gary Gensler’s SEC putting the future of crypto in the U.S. in question. From Kraken’s custodial staking settlement to action against BUSD issuer Paxos, the former CFTC law clerk voices concern that coordination among regulators could choke off the industry’s growth. Hear how Selig thinks Gensler’s SEC is working to bring crypto markets “within the regulatory perimeter.”

Show highlights:

whether regulators are using the FTX case to go against crypto as a whole
what likely caused the NYDFS action against Paxos for BUSD
whether there’s a coordinated effort to undermine the crypto markets
how issuers could argue that stablecoins aren’t securities
why there are limited implications for staking as a whole after Kraken’s SEC settlement
how the regulators are “discouraging access and participation in crypto markets at the banking level”
the differences between Gary Gensler’s SEC and that of his predecessor, Jay Clayton
how the Gensler administration is skeptical of governance and DAOs
why the SEC’s crypto custody rule proposal is refreshing, albeit not perfect