1/ Talked to a NYAG attorney last night, who said this:
The SEC is engaged in the crypto exchange space. With Etherdelta, they got Coburn to cooperate & show that existing laws fit in this space. Translated: “We know how to put the crypto economy in our existing framework.”
The SEC is engaged in the crypto exchange space. With Etherdelta, they got Coburn to cooperate & show that existing laws fit in this space. Translated: “We know how to put the crypto economy in our existing framework.”
2/ My thoughts:
We aren’t even seeing major crackdown from all of the state regulators yet. We are in the middle of “Operation Cryptosweep” (Yup that’s the actual name) that over 40+ states are engaged in.
nasaa.org/45121/state-an…
We aren’t even seeing major crackdown from all of the state regulators yet. We are in the middle of “Operation Cryptosweep” (Yup that’s the actual name) that over 40+ states are engaged in.
nasaa.org/45121/state-an…
3/ The three major types of future enforcement cases (on the states level) will deal with:
1. Sale of unregistered securities;
2. Unregistered broker dealer;
3. Securities fraud.
1. Sale of unregistered securities;
2. Unregistered broker dealer;
3. Securities fraud.
4/ Primarily, the complaints will come from the individual consumers in each state. Most of them have been over the inability or difficulty to withdraw funds from crypto exchanges.
5/ As time goes on, we will see more sophisticated enforcement. The more important question is this & the balancing test that regulators have to think about:
Will the desire to facilitate capital formation make enforcement take a backseat? How do we properly balance that?
Will the desire to facilitate capital formation make enforcement take a backseat? How do we properly balance that?
6/ Everyone is pushing for legislation on the federal level, but this may very well be something that starts from the state level first. We have already seen Wyoming push token- friendly legislation- though NY state is kind of it’s own thing right now.
7/ And I’m sure Delaware will be making moves in the short/medium too. Think about how many entities are registered in Delaware & have addresses in DE even though they don’t have offices there. People get confused af around that and will be pushing the state to make changes.
8/ So this might be a thing where we start seeing states take action and maybe even passing new frameworks + exemptions first, and then federal legislation later. This was what happened in the crowdfunding space, and we might see it for crypto, but will be wayyyy down the line.
