What to Expect from Crypto Regulation in the Wake of the FTX Scandal • TechCrunch

At the TC Sessions: Crypto event last week in Miami, I sat down with Bitwise Asset Management General Counsel and Chief Compliance Officer Kathryn Dowling, Perkins Coy Partner Sarah Schillman, and Paradigm Policy Director Justin Slaughter to talk about the crypto regulation landscape, with a specific focus on states. What we didn’t know before entering the board was how much the industry would change due to the fallout from the previous week’s FTX crash.

Slaughter in particular felt the effects of the FTX fiasco firsthand: Paradigm listed a $278 million investment in the stock exchange after declaring bankruptcy. We’ve talked about that up front, but mostly as a starting point for discussing the effects of the knockout blow to the state of regulation, which in itself has already been a contentious mess, particularly when it comes to US lawmakers and the various federal regulators involved in the market, including the SEC and CFTC.

The main points that the three panelists basically agreed on is that the benefit of FTX’s position is that there is now more momentum than ever before to get to some sort of regulatory framework for cryptocurrency in the US, and that there is now a lot of demand from the industry as well as An opportunity to further educate regulators as they look for lighting coming out of the FTX meltdown. On the incentive side, there is damage minimization, as regulators and legislators do not want more FTX scenarios to continue to emerge, as well as FOMO on business offshore in the markets they have gone ahead to encourage cryptocurrency adoption.

Check out the full panel above for more information.

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