At our TC Periods: Crypto occasion final week in Miami, I sat down with Bitwise Asset Administration Common Counsel and Chief Compliance Officer Katherine Dowling, Perkins Coie Associate Sarah Shtylman and Paradigm Coverage Director Justin Slaughter to speak concerning 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 concerning the business 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 alternate following its declaration of chapter. We talked about that up entrance, however largely as a jumping-off level to debate the knock-on results for the state of regulation, which was itself already a contentious mess, notably relating to U.S. lawmakers and the assorted federal regulators concerned out there, together with the SEC and the CFTC.
The important thing takeaways that every one three panelists basically agreed upon is that the advantage of the FTX scenario is that there’s now extra impetus than ever to reach at some form of regulatory framework particular to crypto within the U.S., and that there’s now ample demand from the business aspect, in addition to a chance to additional educate regulators since they’re searching for illumination popping out of the FTX collapse. On the motivation aspect, 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 executed overseas in markets the place they’ve raced forward to encourage crypto adoption.
Try the total panel above for far more.