Unconfirmed: People Expected a Big SEC Enforcement Action This Week. What Happened? Days Unchained

Stephen Palley, partner at Anderson Kill, discusses a few hot-button crypto regulatory issues like lending products, whether DeFi protocols fall under the SEC’s purview, and more. Show highlights:
why Stephen thinks the SEC and CFTC did not announce more extensive crypto enforcement news this week
what areas the SEC Chair Gary Gensler and the SEC as a whole are focused on regulating
what Stephen has heard about whether stablecoins that are not fully-backed are securities
why Coinbase decided to drop its Lend product
why Stephen is skeptical that decentralized protocols should be regulated under existing securities laws
how securities law is contrary to consumer protection in light of DeFi protocols and airdrops
why DeFi AMMs should be regulated differently than centralized market books
whether companies running a front-end for a DeFi protocol should be considered an exchange
why crypto devs are “going Satoshi” because of US securities laws
 
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Episode Links
 
Stephen Palley
Twitter: https://twitter.com/stephendpalley

Unchained podcast appearance speaking about Ripple: https://unchainedpodcast.com/the-secs-lawsuit-against-ripple-and-2-execs-what-you-need-to-know/ 
 
Topics Covered
 
Lending Products
Coinbase blogs regarding Lend

https://blog.coinbase.com/the-sec-has-told-us-it-wants-to-sue-us-over-lend-we-have-no-idea-why-a3a1b6507009 
https://blog.coinbase.com/sign-up-to-earn-4-apy-on-usd-coin-with-coinbase-cdad79e5f5eb

Lend overview: https://www.jdsupra.com/legalnews/a-september-to-remember-coinbase-avoids-7608131/ 
Brian Armstrong angry tweet storm
https://twitter.com/brian_armstrong/status/1435439291715358721

BlockFi and Celsius overview

https://www.coindesk.com/policy/2021/09/17/3-states-alabama-securities-commission-also-claims-celsius-violated-securities-laws/ 

 
SEC + Gary Gensler
How SEC Chair Gary Gensler’s Views on Crypto Have Changed Since His MIT Days
https://unchainedpodcast.com/how-sec-chair-gary-genslers-views-on-crypto-have-changed-since-his-mit-days/

SEC Chair Gary Gensler Washington Post Q&A

https://www.washingtonpost.com/washington-post-live/2021/09/21/transcript-path-forward-cryptocurrency-with-gary-gensler/ 

Gary Gensler + Elizabeth Warren letters

https://www.warren.senate.gov/newsroom/press-releases/warren-releases-response-from-sec-chair-gensler-affirming-need-to-regulate-cryptocurrency-exchanges-and-protect-investors-and-our-financial-system 

Other
Uniswap delisting certain tokens through its front end

https://www.theblockcrypto.com/linked/112399/uniswap-labs-culls-synthetic-stock-and-derivatives-citing-evolving-regulatory-landscape 


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