How Block.One Got Away With Just a $24 Million Penalty - Ep.93

Unconfirmed

English - October 04, 2019 07:30 - 30 minutes - ★★★★★ - 268 ratings
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Previous Episode: Nick Tomaino on Why He Is Skeptical Libra Will Be Significant - Ep.92

Next Episode: Althea Network: How Ethereum Is Used in the Real World - Ep.94

Heads up, everybody! We are launching a weekly news recap, so stay tuned after the interview to find out about the top stories in crypto this week! (Links below.)
Zachary Fallon, principal at Blakemore Fallon and former SEC staffer, explains why the SEC penalty against Block.One, which raised $4 billion in a yearlong ICO, got a penalty of just $24 million and didn't have to register EOS tokens as securities. He also discusses how this differs from the Kik case, what we can learn from another SEC order this week against Nebulous and what other gray areas remain for potential token issuers who may want to sell to U.S. citizens. We also go over the Crypto Rating Council, and what significance those ratings could have on the way they are regulated, if any.
Thank you to our sponsors!
eToro: https://www.etoro.com
Crypto.com: https://crypto.com
CipherTrace: http://ciphertrace.com/unconfirmed
Episode links:
SEC press release about the Block.One settlement: https://www.sec.gov/news/press-release/2019-202
SEC Order re. Block.One: https://www.sec.gov/litigation/admin/2019/33-10714.pdf
Cooley letter on Block.one: https://www.sec.gov/divisions/corpfin/cf-noaction/2019/block.one-093019-506.pdf
Katherine Wu’s annotated settlement: https://static1.squarespace.com/static/5ac136ed12b13f7c187bdf21/t/5d92c33d937a3466c0c723a9/1569899329538/33-10714.pdf
SEC action on Nebulous: https://www.sec.gov/enforce/33-10715-s
Jake Chervinsky tweet storm on the settlement: https://twitter.com/jchervinsky/status/1179162527541993472?s=20
Marco Santori tweet storm on the settlement: https://twitter.com/msantoriESQ/status/1178811671621591040?s=20
Crypto Rating Council: https://www.wsj.com/articles/cryptocurrency-exchanges-including-coinbase-to-rate-digital-assets-11569835801
CRC ratings thus far: https://twitter.com/lawmaster/status/1178627290676301824?s=20
Articles from this week’s news recap:
Paypal to Back Out of Libra Association: https://www.ft.com/content/6af11092-e5fd-11e9-9743-db5a370481bc
Visa, Mastercard, Other Libra Association Members Jittery: https://www.wsj.com/articles/visa-mastercard-others-reconsider-involvement-in-facebook-s-libra-network-11569967023
Federal Advisory Doesn’t Like Libra: https://www.bloomberg.com/news/articles/2019-09-30/bankers-advising-fed-board-describe-libra-as-a-monetary-threat
SEC press release about the order: https://www.sec.gov/news/press-release/2019-202
The order itself: https://www.sec.gov/litigation/admin/2019/33-10714.pdf
Larry Cermak of The Block on the order: https://www.theblockcrypto.com/post/41612/dont-ask-for-permission-hire-good-lawyers-and-then-ask-for-forgiveness
Letter from House Reps re digital dollar: https://static.coindesk.com/wp-content/uploads/2019/10/Foster-Hill-US-Crypto.pdf
Crypto Rating Council: https://www.wsj.com/articles/cryptocurrency-exchanges-including-coinbase-to-rate-digital-assets-11569835801
Cermak tweet storm: https://twitter.com/lawmaster/status/1178622451451867136?s=20
Blockchain executive departures: http://thein.fo/9a4fd2f9cab44d7d
LedgerX-CFTC dispute: https://www.coindesk.com/ledgerx-claims-personal-animus-drove-ex-cftc-chair-to-stall-approvals

Heads up, everybody! We are launching a weekly news recap, so stay tuned after the interview to find out about the top stories in crypto this week! (Links below.)

Zachary Fallon, principal at Blakemore Fallon and former SEC staffer, explains why the SEC penalty against Block.One, which raised $4 billion in a yearlong ICO, got a penalty of just $24 million and didn't have to register EOS tokens as securities. He also discusses how this differs from the Kik case, what we can learn from another SEC order this week against Nebulous and what other gray areas remain for potential token issuers who may want to sell to U.S. citizens. We also go over the Crypto Rating Council, and what significance those ratings could have on the way they are regulated, if any.

Thank you to our sponsors!

eToro: https://www.etoro.com

Crypto.com: https://crypto.com

CipherTrace: http://ciphertrace.com/unconfirmed

Episode links:

SEC press release about the Block.One settlement: https://www.sec.gov/news/press-release/2019-202

SEC Order re. Block.One: https://www.sec.gov/litigation/admin/2019/33-10714.pdf

Cooley letter on Block.one: https://www.sec.gov/divisions/corpfin/cf-noaction/2019/block.one-093019-506.pdf

Katherine Wu’s annotated settlement: https://static1.squarespace.com/static/5ac136ed12b13f7c187bdf21/t/5d92c33d937a3466c0c723a9/1569899329538/33-10714.pdf

SEC action on Nebulous: https://www.sec.gov/enforce/33-10715-s

Jake Chervinsky tweet storm on the settlement: https://twitter.com/jchervinsky/status/1179162527541993472?s=20

Marco Santori tweet storm on the settlement: https://twitter.com/msantoriESQ/status/1178811671621591040?s=20