The Politicizing of Crypto and Gensler’s Response to a Question of Law

This episode is sponsored by EY and Brave.

On this episode of “Money Reimagined,” Michael Casey and Sheila Warren dive right into Gary Gensler's response to a question of law by Rep. Patrick McHenry during the House oversight hearing of Gensler’s Securities and Exchange Commission earlier this week. Sheila and Michael discuss partisanship, climate disclosures, and the role of the SEC.

A reshaping is taking place of what powers administrative agencies are allowed and the defined responsibilities of Congress and the courts.

In this episode Michael and Sheila discuss:

• Gensler's response to a question of law by Rep. Patrick McHenry
• Partisanship, climate disclosures and the role of the SEC
• The role of government

How crypto is getting politicized

• The role of regulators in the future
• Regulation by enforcement after the fact
• The second time in the crypto industry that unscrupulous actors are engaging in activities that hurt people

Pro-regulatory stance on regulation

• The progressive pro-regulator stance on this issue
• The shadow of the threat
• Responsible actors: good and bad
• No accommodation for innovation
• The sword of Damocles hanging over U.S. partners
• The CFTC action against Binance

Regulation and innovation

• Recognizing the pain that people felt in California
• The need for regulation and innovation
• Let open-source, permissionless innovation happen in a constructive way.
• Crypto is a proxy for other issues.

Inter-agency territoriality

• Inter-agency territorial conflict between SEC and CFTC
• Importance of context in these conversations
• Early warning sign with ICOs in 2017
• Regulation needs to differentiate between good and bad actors

Regulation of digital assets and licensing

• Bermuda's strict licensing requirements
• The massive erosion of trust after FTX
• Joint responsibility of regulators and the industry
• Crypto is not as partisan as it seems.

The problem with simplistic black-and-white solutions.

• Nuance always gets lost, and that's part of the problem.

See Also:

YouTube - Hearing Entitled: Oversight of the Securities and Exchange Commission

From our sponsors:

EY blockchain solutions can transform the business lifecycle for digital ecosystems, by promoting trust, transparency, privacy and efficiency. EY: Helping you build a better working world. Find out more at blockchain.ey.com

Brave is the privacy browser used by almost 60 million people worldwide. The built-in Brave Wallet is your secure passport to Web3. It supports over 100 chains, fiat purchases, swaps, NFTs, and even connects with other wallets and DApps. All right in your browser. No risky extensions, no spoofing. Learn more at brave.com/wallet.

Money Reimagined has been produced and edited by senior producer Michele Musso and our executive producer is Jared Schwartz. Our theme song is “AITA” by Neon Beach.

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