At our TC Sessions: Crypto occasion final 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 speak in regards to the crypto regulation panorama, with a selected give attention to the U.S. What we didn’t know heading into the panel was simply how a lot would change in regards to the trade owing to the fallout from FTX’s collapse the week prior.
Slaughter specifically felt the impacts of the FTX fiasco firsthand: Paradigm wrote down a $278 million funding within the change following its declaration of chapter. We talked about that up entrance, however principally as a jumping-off level to debate the knock-on results for the state of regulation, which was itself already a contentious mess, significantly in relation to U.S. lawmakers and the assorted federal regulators concerned out there, together with the SEC and the CFTC.
The key takeaways that every one three panelists primarily agreed upon is that the good thing about the FTX state of affairs is that there’s now extra impetus than ever to reach at some type of regulatory framework particular to crypto within the U.S., and that there’s now ample demand from the trade facet, in addition to a possibility to additional educate regulators since they’re in search of illumination popping out of the FTX collapse. On the inducement facet, there’s hurt discount, since regulators and lawmakers don’t need extra FTX situations to proceed to unfold, in addition to FOMO on the enterprise being performed overseas in markets the place they’ve raced forward to encourage crypto adoption.
Check out the complete panel above for far more.