At our TC: Crypto event sessions last week in Miami, I met with Katherine Dowling, General Counsel and Chief Compliance Officer of Bitwise Asset Management, Sarah Shtylman, Partner at Perkins Coie, and Justin Slaughter, Chief Policy Officer of Paradigm, to talk about the crypto regulatory landscape, with a specific point. US focus What we didn’t know before entering the panel was how much the industry would change due to the fallout from the collapse of FTX the previous week.
Slaughter in particular felt the effects of the FTX fiasco firsthand: Paradigm wrote down a $278 million investment in the exchange following its declaration of bankruptcy. We talked about it from the get-go, but mostly as a starting point to discuss the ripple effects on the state of regulation, which itself was already a contentious mess, especially as far as U.S. lawmakers and regulators were concerned. various federal regulators involved in the market, including the SEC and the CFTC.
The main takeaways that all three panelists basically agreed on is that the benefit of the FTX situation is that there is now more momentum than ever to come to some sort of state-specific crypto regulatory framework. States, and that there is now strong demand from the industry on the side, as well as an opportunity to further educate regulators as they seek some light coming out of the FTX meltdown. On the incentive side, there’s harm reduction, as regulators and legislators don’t want more FTX scenarios to continue unfolding, as well as FOMO on overseas business in the markets they’re in. are rushed to encourage crypto adoption.
Check out the full panel above for more.