The Legal and Regulatory Fallout From Terra's Collapse: Who Will Pay‪?‬ Unchained

Olta Andoni, deputy general counsel at Ava Labs, and Ari Redbord, head of legal and government affairs at TRM Labs, discuss the Terra stablecoin meltdown, implications for impending international regulations, and the history of stablecoin regulation internationally. Topics covered include:

What the most important legal issues are for the Terra meltdown

How the Terra implosion will trigger more regulation of the space

How regulators seemed to think stablecoins should be regulated even before Terra

How their approach differs between dollar-backed stablecoins vs. algorithmic vs. crypto collateral-backed coins

How European regulators want stablecoin issuers to be treated like banks

What the Lummis-Gillibrand bill would mean for US stablecoin regulation

Whether Terra’s demise will mean that regulators won’t tolerate experimentation with algorithmic stablecoins 

Why regulators will be skittish about stablecoins in response to Terra’s meltdown

Why Olta and Ari were impressed by the NY Department of Financial Services guidance on stablecoins

What the establishment of SEC jurisdiction over Terraform Labs based on the Mirror investigation from last fall means for any enforcement action by the SEC over Terra 

Whether Do Kwon and/or Terraform could face criminal charges in multiple jurisdictions

Why international regulatory consistency is important in the crypto space

Whether civil and class-action lawsuits against Terraform could be expected

How Terra 2.0 could open TFL up to further action from regulators and law enforcement

Why more education is needed to overcome anxiety about DeFi regulations

How hack nondisclosures could be subject to government investigation

 
Thank you to our sponsors!
Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021 
Beefy Finance: https://beefy.finance/ 
 
Episode Links
 
Olta

Avalanche

https://www.avax.network/

Ava Labs

https://www.avalabs.org/

LinkedIn

https://www.linkedin.com/in/oltaandoni/

Twitter

https://twitter.com/AndoniOlta

 
Ari

TRM Labs Website: 

https://www.trmlabs.com/

TRM Labs Twitter

https://twitter.com/trmlabs?s=20&t=m24Ir0OerqPgEejlhL-bdQ

TRM Talks

https://www.trmlabs.com/category/trm-talks

LinkedIn

https://www.linkedin.com/in/ari-redbord-4054381b4/

Twitter

https://twitter.com/ARedbord?s=20&t=m24Ir0OerqPgEejlhL-bdQ

 
Lummis-Gillibrand Bill
Bill Introduction:
https://www.gillibrand.senate.gov/news/press/release/-lummis-gillibrand-introduce-landmark-legislation-to-create-regulatory-framework-for-digital-assets

Legal Memo from DLx Law: https://dlxlaw.com/wp-content/uploads/2022/06/DLX_FSV-summary_RFIA_060722.pdf


Lummis-Gillibrand Section by Section Overview (summary by bill authors): https://www.gillibrand.senate.gov/imo/media/doc/Lummis-Gillibrand%20Section-by-Section%20%5bFinal%5d.pdf


Responsible Financial Innovation Act (full text): https://www.gillibrand.senate.gov/imo/media/doc/Lummis-Gillibrand%20Responsible%20Financial%20Innovation%20Act%20%5bFinal%5d.pdf


Blog post intro (by Senator Kirsten Gillibrand): https://gillibrandny.medium.com/the-responsible-financial-innovation-act-218a764abd6c


 
FINMA
FINMA:
https://www.finma.ch/en/
FINMA on Stablecoins:
https://www.finma.ch/en/news/2019/09/20190911-mm-stable-coins/
FINMA Publishes Stablecoin Guidance:
https://www.sif.admin.ch/sif/en/home/finanzmarktpolitik/digitalisation-financial-sector/stablecoins.html
 
NY DFS
Guidance on Stablecoin Issuance:
https://www.dfs.ny.gov/industry_guidance/industry_letters/il20220608_issuance_stablecoins
Press Release:
https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202206081
CNBC Coverage:
https://www.cnbc.com/2022/06/08/new-yorks-financial-watchdog-issues-stablecoin-guidance-calls-for-reserve-requirements.html
 
Learn more about your ad choices. Visit megaphone.fm/adchoices