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1/ The U.K.'s FAC (Financial Conduct Authority) released some pretty important (draft) guidelines today outlining how they are thinking around regulation of crypto assets.
Adding my two cents in addition to the fire threads from @msantoriESQ and @PatBerarducci 🧠
Adding my two cents in addition to the fire threads from @msantoriESQ and @PatBerarducci 🧠
2/ Last month, I went and met with some folks from Hong Kong's SFC (Securities and Future Commission), who have released regulatory guidance for crypto exchanges & funds. What's interesting to me: non-U.S. regulators are less likely to focus on the 'everything= security' thing.
3/ This is because the Howey Test & its broad definition of an 'investment contract' is unique to the U.S. only. Other jurisdictions do not have as broad of a definition within their legal limits.
4/ In fact, the Hong Kong regulators (and it seems like the UK here too) are pretty comfortable with the position that not all tokens = securities, and that not everything token-related would fall under their jurisdiction. (Screenshot from a November guidance by the HK SFC). 
5/ In addition, Hong Kong has launched sandboxes for crypto exchanges, and seem fairly willing to work with the crypto community to shape the regulations into something that makes more sense (likely in response to criticism that the regulations are too hard to comply w)
6/ The SEC has been so vilified by the crypto-community in the U.S. due to definitions that are rooted in the way that the legal structure is set. The U.S. legal system is based on precedents, and to overrule that usually takes a shit ton of time and legal resources. 🤷🏻♀️
7/ But this also may be how and why other countries (particularly SE Asia or HK/Taiwan) can jump into the crypto sector by providing frameworks and guidance that are easier to navigate or, in some cases, construct from ground zero.
8/ The U.S. government shutdown will result in so much backlog and delays across all sectors- I am pessimistic about any meaningful progress that could be made on the crypto frontier once everything is back up and running (if ever..)
9/ Though other regulators in the world still look to the U.S. regulators and their crypto guidance as a reference, it's clear that they are taking one step forward and issuing sandboxes, regulations, or guidance without waiting around.
10/ So-- aside from Switzerland, Malta, Singapore, Hong Kong, and the U.K., I'm interested to see which other countries will issue comprehensive guidance/ frameworks for the crypto asset space in this next year in an effort to encourage fintech + innovation in their country.
THE FCA** b/c i have fat fingers ty @msantoriESQ for calling out my typo now i will lie awake tonight thinking about this typo for years to come 🤦♀️
11/ Welp, the news timing couldn’t be better to illustrate the US government shutdown implications for crypto.
Funny antidote when I tell non-US regulators about the government shutdown they are like literally just like uhhhhh what tf 😨😨😰😰
Funny antidote when I tell non-US regulators about the government shutdown they are like literally just like uhhhhh what tf 😨😨😰😰
