Favorite moment of argument so far:
SEC— “the tokens themselves are not a security”
Failla— “that’s what the folks in the back table think (Coinbase). And they are wondering why we are here”
The @SECGov just entered a proposed settlement in their case against Ishan Wahi, the former Coinbase employee, which is a complete surrender and shows the weakness in the SEC's theories about secondary market trading of crypto
This is a meaningful development for the industry
Gensler’s SEC wants to brute force crypto into an ill-fitting disclosure framework
In our latest piece, we show why this is a bad policy that fails to give crypto users and investors the info they need, or provide entrepreneurs w/ a viable path to comply
policy.paradigm.xyz/writing/secs-p…
Today, we are excited to launch the Paradigm Policy Lab 🚀🧪
Led by @brendanpmalone and myself, the Lab will be a gathering place for academics, policy experts, lawyers, and technologists to study how to address the biggest policy challenges in crypto
Today, @paradigm commented on the @SECGov's proposed redefinition of “exchange"
Through haphazard rulemaking, the SEC inappropriately attempts to bring crypto trading platforms, including DEXs, under its remit and regulate them as securities exchanges
policy.paradigm.xyz/writing/3b-16c…
Gensler’s admonition that crypto projects should “just come in and register” to “come into compliance” is impossible to abide by. We wrote a 4 part series explaining why
policy.paradigm.xyz/writing/secs-p…
Paradigm filed an amicus brief in the SEC suit vs. Terra and Do Kwon
Paradigm was not an investor in Terra and our brief was filed in support of neither party’s motion—our only interest was to push back against the SEC’s continued attempt to expand its jurisdiction over crypto
Today @paradigm and @a16zcrypto filed a joint amicus brief in @SECGov's case against @coinbase that demonstrates why the SEC’s approach is unsupported by case law and represents a significant and problematic expansion of its regulatory authority
SEC continues its carpet bombing campaign against crypto, issuing another Wells to Robinhood
You have to wonder whether at this point Gensler has bit off more than he can chew
Robinhood’s CLO, Dan Gallagher, is a former SEC commissioner appointed by Obama
Today SCOTUS granted cert to a case that will decide the legality of @SECGov's in-house administrative court, showing once again that the Court intends to curtail administrative overreach
The great thing about the American political system is that it’s designed to curtail administrative overreach
In the face of an intransigent @SECGov, the courts will ensure crypto has a future in the US
The Tornado Cash sanctions created confusion about the compliance obligations of actors in crypto's ecosystem. At @paradigm, we believe that crypto's base layer should not be required to monitor or censor transactions in order to comply with sanctions
In other words, the SEC completely folded when faced with a spirited defense pushing back on their claims that tokens trading in secondary markets were securities
The SEC is having a really hard time making a principled argument that tokens, which they admitted are not securities in and of themselves, should be regulated as securities when they trade
