What to expect from crypto regulation in the wake of the FTX scandal
During our TC Sessions: Crypto event last week in Miami, I sat down with Bitwise Asset Management General Counsel and Chief Compliance Officer Katherine Dowling, Perkins Coie Partner Sarah Shtylman, and Paradigm Policy Director Justin Slaughter to talk about the crypto regulatory landscape, with a specific focus on the US What we didn’t know when we entered the panel was how much the industry would change as a result of the fallout of FTX the week before.
Slaughter, in particular, felt the effects of the FTX fiasco firsthand: Paradigm wrote a $278 million investment in the stock after declaring bankruptcy. We’ve talked about that up front, but mainly as a starting point to discuss the knock-on effects for the state of regulation, which itself has been a contentious mess, especially when it comes to U.S. lawmakers and the various federal regulators involved in the market, including the SEC and the CFTC.
The main points that all three panelists essentially agreed on is that the upside of the FTX situation is that there is now more than ever an impetus to move towards some kind of regulatory framework specific to crypto in the US , and that there is now sufficient demand from the industry. side, as well as an opportunity to further educate regulators as they look for relief coming from the collapse of the FTX. On the stimulus side, there is harm reduction as regulators and legislators don’t want more FTX scenarios to continue to unfold, as well as FOMO on business being done overseas in markets where they have moved forward to drive crypto adoption. to encourage.
Check out the full panel above for much more.