A number of high-profile regulators weighed in on crypto and related issues.
Examining the intersection of cryptocurrency and government Was this newsletter forwarded to you? Sign up here. |
|
|
Welcome to State of Crypto, a CoinDesk newsletter looking at the intersection of cryptocurrency and government. I’m your host, Nikhilesh De. You’re probably here because you signed up, but in case you're not a fan, you can unsubscribehere. Hey folks. I’m in Washington, D.C., this week for DC Fintech Week. I’m going to highlight some statements or comments that stood out to me, but on a personal note I wanted to say it was great to meet so many of you (and shoutout to those of you who said you read this newsletter – I appreciate each and every one of you!). — Nik |
|
|
What the Regulators Said at DC Fintech Week |
|
|
DC Fintech Week is an annual policy conference organized by Georgetown University School of Law’s Chris Brummer. It’s a substantive conversation, but I enjoy going as much for the people I meet at the event as I do for the talks themselves. |
I always say I go to events at least partly for the actual discussions and partly to meet fellow attendees. Today I want to share what the speakers at the event had to say this year. |
| Acting Comptroller of the Currency Michael Hsu opened day one, comparing crypto user interfaces to the iPhone’s development, but warning that this may trick people into thinking crypto services are similar to traditional financial services. “In layman’s terms, until crypto matures and appropriate guardrails and gates are put in place, it would be wise to limit the scope of activities commingled within a single crypto firm – a limit on the PD [probability of default] – and to limit integration of crypto and TradFi – a limit on the LGD [loss given default],” Hsu said. Commodity Futures Trading Commission Chair Rostin Behnam said the regulator’s case against Ooki DAO pretty much had to happen, calling it “egregious and so obvious” during a one-on-one with Brummer. (See my side note and comment about this here). "It was hardly decentralized,” Behnam said of the DAO. “There were a few individuals who were very much at the center." Fed Vice Chair for Supervision Michael Barr warned that banks tokenizing things might be a bit concerning, but also provided some insights as to why it might take (some) regulators a while to write policy. “The range of options available for dealing with emerging technologies and those benefits are solid,” Barr said. “One of them is just risk identification, so we can enunciate to the world that we see a set of risks and that they should be looked at carefully. And that has an actual effect on behavior.” (See what else he said here). Rep. Patrick McHenry, the ranking Republican member of the House Financial Services Committee, said the long-anticipated stablecoin bill may happen within the next few months, but there's still some ongoing disagreements around regulatory oversight and how the assets are to be stored. “We agree on all the components of what the asset is,” he said. “We’ve come up with a pretty ugly baby. It is a baby, nonetheless.” Click here to get the full story - including my take on these comments and my reflections on additional speakers like Caitlin Long and Eun Young Choi. |
|
|
Key: (nom.) = nominee, (rum.) = rumored, (act.) = acting, (inc.) = incumbent (no replacement anticipated) |
|
|
(The New York Times) Airbus and Air France are (finally) facing the families of the 228 victims of Air France flight 447 in court. The flight was a regularly scheduled one from Brazil to France which crashed in the Atlantic Ocean after its static ports iced over in a storm. For more information, here’s the final report from France’s Bureau d'Enquêtes et d'Analyses pour la sécurité de l'aviation civile, its aviation accident investigator. |
|
|
The Investing in Digital Enterprises and Assets Summit reveals the most scalable and fastest-growing market opportunities in blockchain, digital assets, Web3 and the metaverse for traditional asset managers and institutional investors. Learn directly from the founders and developers pioneering breakthrough innovations that will drive large-scale adoption. Use code SOC_20 for 20% off the General Pass. Register now. |
|
|
If you’ve got thoughts or questions on what I should discuss next week or any other feedback you’d like to share, feel free to email me at [email protected] or find me on Twitter @nikhileshde. You can also join the group conversation on Telegram. See ya’ll next week! |
|
|
|
