The Legal and Regulatory Fallout From Terra's Collapse: Who Will Pay? - Ep. 363
Unchained
English - June 14, 2022 02:30 - 1 hour - ★★★★★ - 1.2K ratingsBusiness News News Tech News fintech bitcoin blockchain crypto cryptocurrency digitalasset digitalcurrency distributedledger ethereum laurashin Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
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/
https://www.linkedin.com/in/oltaandoni/
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
https://www.linkedin.com/in/ari-redbord-4054381b4/
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
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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/
https://www.linkedin.com/in/oltaandoni/
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
https://www.linkedin.com/in/ari-redbord-4054381b4/
https://twitter.com/ARedbord?s=20&t=m24Ir0OerqPgEejlhL-bdQ
Lummis-Gillibrand Bill
Bill Introduction: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:FINMA on Stablecoins:https://www.finma.ch/en/news/2019/09/20190911-mm-stable-coins/
FINMA Publishes Stablecoin Guidance:
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:
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