Fourteen days. That's the window the crypto industry has to get the CLARITY Act through the Senate — or wait until the 2030s for another shot.The combined draft dropped last week for the first time, merging the Senate Banking and Agriculture committee text into one bill. It added a law enforcement title (the Fraternal Order of Police endorsed it the same day). It added an ethics provision. And Democrats are rejecting that provision outright.This week on The Defiant, we're bringing three people living this fight from the inside: Miller Whitehouse-Levine (Solana Policy Institute), Amanda Tuminelli (DeFi Education Fund), an...
Kristin Smith walks through the vote math, the ethics fight, and what happens to crypto capital if the Clarity Act stalls before the midterms.
The Senate needs 60 votes to pass crypto's market structure bill, the Clarity Act, before an August recess deadline just weeks away. Majority Leader John Thune says the votes likely will not be there in time, and Polymarket puts the odds of passage this year at roughly 30 percent.
Kristin Smith, President of the Solana Policy Institute, joins Laura Shin to explain why a deal that seemed close has snagged on ethics language Trump agreed to but Senate Democrats do not trust the Department of Justice to enforce.
Smith walks through the vote math behind 53 Senate Republicans and the Democrats who backed last year's Genius Act, the Blockchain Regulatory Certainty Act's protections for developers, and the new commodities pathway for token launches. She also maps where the sidelined capital goes, from the Middle East to Japan, if Clarity misses its window before the midterms.
Host
Laura Shin - Founder, CEO and Host of Unchained
Guest
Kristin Smith - President of the Solana Policy Institute
Sponsor
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Timestamps:
🗳️ 00:51 Why Clarity's Senate timeline looks so tight before the August recess
📣 09:20 Cape: Get 33% off your first six months with code unchained at https://cape.co/unchained
⚖️ 10:16 Why Trump's ethics language deal became Clarity's toughest sticking point
🏛️ 18:34 Kristin Smith on the Clarity Act provisions that most excite the industry
🌍 23:31 What happens to crypto capital and global leadership if Clarity fails
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The crypto industry is fixated on the U.S. Senate.
On Thursday, lawmakers failed to advance the GENIUS Act, the most significant federal stablecoin bill to date. But the story isn’t over.
Behind the process is a drama about potential presidential conflicts, shifting political alliances, and unresolved policy questions.
In this episode, Kristin Smith, CEO of the Blockchain Association and Amanda Tuminelli, executive director and CLO of the DeFi Education Fund, break down:
Why the bill stalled but isn’t dead yet
The role Trump’s crypto ties are playing
Whether Democrats who once backed crypto are turning away
Why advocates are still pushing for a deal this year
Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com
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Mantle
Kristin Smith, CEO of the Blockchain Association
Amanda Tuminelli, executive director and CLO of the DeFi Education Fund
Timestamps:
👋 0:00 Intro
📉 2:01 Why the Senate blocked the vote but the bill isn’t dead yet
🔄 5:17 Why some pro-crypto Democrats suddenly flipped
⚖️ 8:08 Key differences between the two competing GENIUS Act proposals
🔄 14:18 Whether lawmakers are starting to shift their crypto stances
🤝 16:05 Can the Senate overcome divisions and get this across the finish line?
🏛️ 18:14 How Trump’s crypto ties are shaping the legislative battle
⏳ 20:46 Is the August deadline already slipping out of reach
📝 22:39 Combining stablecoin and market structure bills
🎉 25:59 Why Kristin says it’s a relief not to have to deal with Gensler anymore
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Subscribe to Unchained’s new regulatory newsletter Unregulated.
With the presidential race in the spotlight, it’s easy to overlook the powerful role that Congress could play in shaping crypto policy in the coming years. From committee chairs to legislative allies, crypto advocates are keenly focused on the outcome of key Congressional races. Kristin Smith of the Blockchain Association and Alex Grieve of Paradigm join us today to break down which races and committees are critical for crypto, why the industry is more visible in Washington than ever, and what the chances are for lame duck legislation this year.
Read more: How Congressional Committee Leadership Could Shake Out for Crypto This Election
Show highlights:
Why this election is “incredibly important” for crypto
How the presence of Fairshake is increasingly noticed by Washington
Why some committees are more important than others for the industry
Why the Senate Banking Committee is key
Whether Alex and Kristin are concerned about Sen. Warren becoming chair of the Senate Banking Committee
What could happen to the House Financial Services Committee
Who is likely to take on both of the Agricultural Committees, which is in charge of the CFTC
How the Senate Commerce affects the crypto industry
How the members of the House Energy Committee don’t have a strong stance on crypto
What the stance of the Finance Committee on crypto is
Why there is an opportunity in the House Ways and Means Committee
Whether crypto tax legislation is in the works
Who could be the SEC Chair under a Trump or Harris presidency
Who could be the next Chair of the CFTC
Whether Yellen will be replaced on Treasury, with many pro-crypto options on tap
Why the Federal Reserve matters much more if they get to regulate stablecoins
What the odds are for crypto legislation being passed this year
Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com
Thank you to our sponsors!
Polkadot
Mantle
Robinhood & Arbitrum
Guests:
Kristin Smith, CEO of the Blockchain Association
Kristin’s Op-ed on Unchained: In the Ongoing SAB 121 Fight, Here’s How Crypto Can Move Forward With Bipartisan Support
Previous appearances on Unchained:
Kristin Smith on Why Crypto Legislation Could Be Passed by Year's End
Can Crypto Be a Force in the Midterms? Yes, Say Kristin Smith and Jake Chervinsky
What the Crypto Industry Could See Under a Biden Administration
Alexander Grieve, VP of Government Affairs at Paradigm
Links
Previous coverage of Unchained on the elections:
With Rate Cuts and Upcoming Elections, What’s the Best Play in Crypto?
Why Congressman Ro Khanna Is Hopeful the Democratic Party Will Embrace Crypto
Why Gary Gensler Will Likely Be Out as SEC Chair No Matter Who Wins the Election
Congressman French Hill on Crypto and His Top Pick for the Next SEC Chair
Timestamps:
00:00 Intro
01:55 Why this election is pivotal for crypto
04:50 How Fairshake’s presence is catching Washington’s eye
16:39 Which committees matter most for crypto?
22:49 Why the Senate Banking Committee is crucial
28:54 Concerns about Sen. Warren as potential chair?
38:15 Possible shifts in the House Financial Services Committee
41:47 Who could control the Agricultural Committees and CFTC oversight?
47:35 How the Senate Commerce Committee impacts crypto
51:04 House Energy Committee’s stance on crypto
53:21 Finance Committee’s crypto perspective
55:03 Opportunities in the House Ways and Means Committee
57:28 Is crypto tax legislation in the works?
1:01:23 Potential SEC Chairs under Trump or Harris
1:03:57 Who could be the next CFTC Chair?
1:05:46 Will Yellen be replaced with a pro-crypto Treasury option?
1:08:06 Why the Fed’s role could be pivotal for stablecoin regulation
1:10:46 Odds of crypto legislation passing this year
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Welcome to The Chopping Block – where crypto insiders Haseeb Qureshi, Tom Schmidt, Robert Leshner, and Tarun Chitra explore the latest trends in the crypto world. In this episode, we invite Laura Shin and special guest Kristin Smith of the Blockchain Association to discuss the latest in crypto politics. We dive deep into JD Vance's VP candidacy alongside Donald Trump and its implications for the crypto industry. We also explore the impact of recent political events on the crypto markets, the potential outcomes of key legislative efforts, and the future of the SEC post-2024 elections. Don't miss this insightful conversation on how the shifting political landscape might shape the future of crypto in the U.S.
Show highlights
🔹The attempted assassination of Donald Trump and its effects on the crypto market, including his announcement of JD Vance as his running mate.
🔹Analysis of Trump's changing stance on crypto, and his increasing willingness to engage with the industry and its leaders.
🔹Explanation of the Vice President's role in setting financial services and innovation policy, especially in a potential Trump administration.
🔹 Speculation on whether Gary Gensler will step down if Trump wins and what this could mean for crypto regulation.
🔹 Overview of recent meetings between crypto executives and White House officials, signaling a shift in the Biden administration's approach to the industry.
🔹 Examination of the significant fundraising by crypto PACs like the Fair Shake PAC and their impact on political and regulatory decisions.
🔹Discussion on the Digital Commodities Act, market structure bills, and the challenges of passing crypto legislation in the current congressional session.
🔹 The evolving bipartisan support for crypto legislation and the importance of maintaining this support for future regulatory clarity.
Hosts
⭐️Haseeb Qureshi, Managing Partner at Dragonfly
⭐️Tom Schmidt, General Partner at Dragonfly
⭐️Laura Shin, Journalist, Author of ‘The Cryptopians,’ founder and CEO of Unchained
Guests
⭐️Kristin Smith, Chief Executive Officer of Blockchain Association
Disclosures
Timestamps
00:00 Intro
02:15 Trump & JD Vance
10:27 Politicians Stance on Crypto Policy
27:41 Crypto's Lobbying Efforts
34:56 Crypto's Political Influence
36:58 SEC Enforcement and Legal Battles
39:19 Speculations on Biden Administration's Crypto Stance
49:48 Legislative Pipeline and Market Structure Bills
01:01:36 Future of Crypto Regulation
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Kristin Smith is the CEO of Blockchain Association and Anthony Scaramucci is the founder and managing partner of SkyBridge Capital.
In this episode, Smith and Scaramucci discuss the impact of crypto policy and politics on recent events, including the ETH ETF win, bipartisan support, and the influence of Trump and Biden.
The discussion highlights the significance of the crypto voter, the evolving stance of the White House, and the potential impact on elections.
OUTLINE
00:00 Introduction
00:38 Political Paradigm Shift
05:57 Biden WH Crypto Policy
08:09 Crypto 'Voting Bloc'
13:02 Trump's Crypto Flip Flop
16:33 Biden's Crypto Strategy
23:17 Closing Thoughts
This episode is brought to you by our sponsor Polkadot
Polkadot is the blockspace ecosystem for boundless innovation. To discover more head to polkadot.network
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The Block is launching a new community experience for fans of The Scoop! Follow us on Lens to stay in the loop: hey.xyz/u/theblockcommunity
The Block Newsletters
The Block's newsletters bring you the latest news and analysis of the fast-moving crypto and DeFi markets. To subscribe, visit theblock.co/newsletters
In today's episode, Santi is joined by Rebecca Rettig and Miller Whitehouse to update us on the latest policy concerns impacting crypto. They cover the origins of the DeFi Education Fund and the realities of educating regulators on the novelty of DeFi. They then shift gears and discuss onchain illicit activity that exists, how to find a compromise between permissionless systems and state control, the role stablecoins like USDC play, and reactions to the SEC’s proposed dealer rule that threatens DeFi participation. Rebecca breaks down her recently published paper “Genuine DeFi as Critical Infrastructure” offering a conceptual framework for regulation that leverages DeFi’s transparency while allowing permissionless systems to thrive. Stay tuned for all of this and much more!
- -
Follow Rebecca: https://twitter.com/RebeccaRettig1
Follow Miller: https://twitter.com/millercwl
Follow Jason: https://twitter.com/JasonYanowitz
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Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/
- -
This episode is brought to you by Chainalysis.
Chainalysis is the blockchain data platform. We provide data, software, services, and research to government agencies, web3 companies, financial institutions, and insurance and cybersecurity companies. Our data powers investigation, compliance, and business intelligence software that has been used to solve some of the world’s most high-profile criminal cases.
For more information, visit www.Chainalysis.com/empire
- -
Timestamps
(0:00) Origin of DeFi Education Fund
(6:10) DeFi Regulatory Framework Paper
(12:35) Educating Regulators
(17:45) Onchain Illicit Activity
(28:59) Chainalysis Ad
(30:04) Compromise for States
(41:52) How Important is US Policy
(51:17) Role of Coinbase & Circle
(1:00:42) SEC Proposed Rule
- -
Resources
Paper
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4607332
DeFi Education Fund
https://www.defieducationfund.org/
- -
Disclaimer: Nothing said on Empire is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Santiago, Jason, and our guests may hold positions in the companies, funds, or projects discussed.
🚨LEAVE A COMMENT🚨 https://treasuryraid.lexpunk.army/
We need to stop the US from killing crypto. The new IRS proposals could effectively destroy DeFi and other crypto use cases.
The good news? We can change this. 5 minutes is all it takes to leave a comment and get the interpretation delayed.
In this episode, we bring on Miller Whitehouse-Levine of the DeFi Education Fund and tax lawyer Jason Schwartz to discuss the proposed rules and their catastrophic implications.
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------ TIMESTAMPS
0:00 Intro 6:30 Miller and Jason 8:15 The Broker Laws 15:30 Proposed Regulation 20:50 Endgame Oversight 26:00 They Hate Crypto 31:00 The Comment Process 36:40 New Crypto Tax Tools 42:00 So What Happens… 46:30 Pressuring the Departments 50:50 How We Can Win 56:20 What We Have to Do
——— RESOURCES
Miller Whitehouse-Levine https://x.com/millercwl?s=20
Jason Schwartz https://x.com/CryptoTaxGuyETH?s=20
Get Involved https://x.com/LeXpunK_Army/status/1713186443445629429?s=20 https://x.com/CryptoTaxGuyETH/status/1695603888957641154?s=20 https://x.com/fund_defi/status/1713929569030275285?s=20
------ Not financial or tax advice. See our investment disclosures here: https://www.bankless.com/disclosures
Kristin Smith is the CEO of Blockchain Association — one of the top crypto policy advocacy groups in the U.S.
In this episode, Smith unpacks the intricacies of the pending market structure bill set to make its way through Congress this fall, highlighting its potential to bring crypto regulatory clarity in the U.S. once and for all.
According to Smith, the bill could be what's needed to bring in greater institutional participation and mainstream adoption:
"It's something that we think that if it were to move forward, would give a lot of confidence to institutional investors, to traditional tech companies and other players to enter this space because they know there is a clear and workable regulatory framework in place."
Outline:
00:40 - Current State of Crypto in DC
05:00 - Token Taxonomy Act (2018)
07:24 - 2023 Congressional Crypto Outlook
09:02 - Stablecoin Legislation
13:20 - Market Structure Legislation
16:24 - XRP Ruling
24:46 - Treasury Department & Crypto
28:07 - Anti-Crypto Congressional Sentiment
29:48 - Aliens
31:55 - 2024 Presidential Candidates & Crypto
In today’s episode of Empire, we start with a deep regulatory discussion with Kristin Smith and Rebecca Rettig to explore Gary's attack on crypto. We cover the SEC's attack against Kraken and BUSD, tokens as securities, market implications, what to expect next and more!
Santi and Jason co-pilot the last 25 minutes to discuss Blur's airdrop, the battle for NFT market share, the L2 wars and Flashbots' new MEV-Share product. This episode covers everything you need to know from this wild week!
- -
Timestamps:
(00:00) Introduction
(02:55) An attack on Stablecoins?
(06:34) Kraken and staking services
(10:22) Why is Gary gunning for crypto?
(14:09) The Implications and path forward
(27:37) What if tokens were deemed securities?
(32:30) Blockworks Research
(34:05) How should crypto companies respond?
(40:22) Regulation segment recap
(51:25) Blur's airdrop, OpenSea losing market share
(59:10) L2 Wars, Flashbots MEV-Share, Sushi Studios
- -
Follow Santi: https://twitter.com/santiagoroel
Follow Jason: https://twitter.com/JasonYanowitz
Follow Kristin: https://twitter.com/KMSmithDC
Follow Rebecca: https://twitter.com/RebeccaRettig1
Follow Empire: https://twitter.com/theempirepod
Subscribe on YouTube: https://tinyurl.com/4fdhhb2j
Subscribe on Apple: https://tinyurl.com/mv4frfv7
Subscribe on Spotify: https://tinyurl.com/wbaypprw
Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/
- -
Resources
Blockchain Association
https://twitter.com/BlockchainAssn
Polygon
https://twitter.com/0xPolygon
Empire podcast with Rebecca Rettig and Jake Chervinsky
https://spoti.fi/3YTMfoh
Flasbots MEV-Share article
http://bit.ly/3S7g9TO
Categorizing different zk implementations (a Twitter thread)
https://twitter.com/pseudotheos/status/1622698514475061252?s=20
- -
Disclaimer: Nothing said on Empire is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Santiago, Jason, and our guests may hold positions in the companies, funds, or projects discussed.
Sheila Warren, CEO of the Crypto Council for Innovation, and Miller Whitehouse-Levine, Policy Director of the DeFi Education Fund, offer insider takes on how lawmakers and regulators are viewing crypto after FTX’s catastrophic failure. Both expect heightened activity in the U.S. from what they’re calling the “Crypto Congress.” Will this be the year for stablecoin regulation? Is DeFi still in the crosshairs? What about Ripple’s fight with the SEC? The two crypto policy experts look to the U.S. and beyond for what regulatory battles lie ahead in 2023.
Show highlights:
why the current environment in Washington makes it difficult to pass new legislation
whether the opinion of members of Congress on crypto has changed in the aftermath of FTX’s alleged fraud
how Elizabeth Warren and others are using the FTX collapse to prove their anti-crypto stance
whether it’s possible to prevent a fallout like FTX from ever happening again
why Miller believes that this year Congress will be “absolutely obsessed” with crypto
what stablecoin legislation would look like, and why stablecoins are more likely to be regulated sooner
why Sheila thinks Ripple could win its case against the SEC
why they believe the SEC’s failure to approve a spot Bitcoin ETF is a logical inconsistency
why they think it’s not possible to apply TradFi rules to DeFi technology
how more policymaker education needs to be done
how OFAC sanctioning Tornado Cash sparked many conversations among researchers and policymakers
the role of the government in preserving national security
how MiCA took an appropriately slow approach to imposing DeFi regulations
the impact of China and India adopting digital currencies
why Miller thinks China’s digital yuan is “the apotheosis of a totalitarian technology”
Thank you to our sponsors!
Crypto.com
FTSE
Links
Previous coverage of Unchained on crypto legislation:
Why Bitcoin Now: Michael Casey and Niall Ferguson on How Bitcoin Fits in the History of Money
Kristin Smith on Why Crypto Legislation Could Be Passed by Year's End
Why Senator Pat Toomey Thinks SEC Chair Gary Gensler Is Wrong About Crypto
Guests:
Sheila:
Twitter
Miller:
LinkedIn
FTX
CoinDesk:
After FTX: How Congress Is Gearing Up to Regulate Crypto
Congress' FTX Problem: 1 in 3 Members Got Cash From Crypto Exchange's Bosses
After FTX: How Congress Is Gearing Up to Regulate Crypto
CNBC: House Republicans move to regulate crypto industry with a new subcommittee
MiCA
CoinDesk:
Analyzing What's Next for Europe's Markets in Crypto Assets Law
EU’s MiCA Crypto Law Would Have Stopped FTX's Malpractice, Officials Say
Others
Project Hamilton - Building a Hypothetical Central Bank Digital Currency
U.S. Treasury Sanctions Notorious Virtual Currency Mixer Tornado Cash
Tornado Cash is no “golem.” It’s a tool for privacy and free speech. - Coin Center
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In this episode of Empire, Kristin Smith and Jake Chervinsky join us to discuss how FTX's collapse will impact crypto regulation.
SBF was the poster child of crypto in D.C. - how will his fallout damage crypto's reputation? Did regulators fail consumers, and how will they respond? What are the shortcomings of the DCCPA bill? How important are the political midterms, and what is happening in the securities vs commodities debate? Tune in to find out!
- -
Timestamps:
(00:00) Introduction
(00:54) SBF’s Unbelievable Damage
(07:17) How Active Was SBF In D.C.?
(09:52) The First Red Flags & DCCPA Threats
(22:56) Where Regulators Failed
(27:32) Expected Reaction From D.C.
(33:43) Circle Ad
(35:26) DCCPA Overview & Its Impact On DeFi
(47:53) What The Midterms Mean For Crypto
(50:55) The Litigation Phase
(55:07) LBRY, Ripple & Progressive Decentralization
(1:03:45) A Path Forward
- -
Follow Kristin: https://twitter.com/KMSmithDC
Follow Jake: https://twitter.com/jchervinsky
Follow Jason: https://twitter.com/JasonYanowitz
Follow Empire: https://twitter.com/theempirepod
Subscribe on YouTube: https://tinyurl.com/4fdhhb2j
Subscribe on Apple: https://tinyurl.com/mv4frfv7
Subscribe on Spotify: https://tinyurl.com/wbaypprw
Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/
--
Circle’s USDC has quickly become one of the most trusted and widely used stablecoins because of its composability, stability and reserve transparency. As a seamless, trusted digital currency, USDC is a zero-to-one opportunity for the global financial system. Check out their Transparency Hub at http://empirepodcast.link/circle that outlines everything from links to USDC weekly reserve reports, monthly attestations, and blog posts written by their executive team highlighting how and why USDC was built the way it is.
- -
Resources
Jake's tweet thread on DCCPA
https://twitter.com/jchervinsky/status/1570451252852527104
Brian Amstrong's response to Elizabeth Warren
https://twitter.com/brian_armstrong/status/1590511022104010753
Ron Hammond's tweet thread on FTX/SBF
https://twitter.com/ronwhammond/status/1590741692348772352
Blockchain Association website
https://theblockchainassociation.org/
- -
Disclaimer: Nothing said on Empire is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Santiago, Jason, and our guests may hold positions in the companies, funds, or projects discussed.
Kristin Smith, Executive Director of the Blockchain Association, comes to talk about Tornado Cash, the lawsuit against Ooki DAO, the SEC charges against Kim Kardashian, and crypto legislation.
Show highlights:
whether regulators did not understand the implications of sanctioning smart contracts
the necessity of having a conversation around financial privacy
whether the government wants sanctions compliance at the base layer
the reasons behind the CFTC lawsuit against Ooki DAO
why the SEC settled charges with Kim Kardashian and whether it was a publicity stunt
the chances of the different crypto bills becoming law
why Kristin thinks stablecoin legislation won’t come this year
whether the CFTC being the main regulator of crypto settles the question of crypto being securities or commodities
Thank you to our sponsors!
1inch
Crypto.com
Kristin
Twitter
The lawsuit against Ooki DAO
Previous coverage of Unchained on Ooki DAO: Why the Ooki DAO Case Could Hurt Participation in DAOs
CFTC Filing
$250,000 fine
CoinDesk’s Nik De’s analysis
CFTC Commissioner Summer Mersinger’s dissenting statement
Jake Chervinsky’s opinion
Ooki DAO’s options
CFTC serving the members of the Ooki DAO via their forum
Tim Copeland’s article on what’s next for DAOs
A federal court ruled that the CFTC legally served Ooki DAO through a website help bot.
The LeXpunK Army filed a motion for amicus status in the SEC case against bZx/Ooki DAO.
Crypto group DeFi Education Fund argued that the CFTC should properly serve Ooki DAO’s actual members, not just the DAO at large.
Tornado Cash
Treasury Press release
Previous coverage of the Tornado Cash sanctions on Unchained:
Is TRM Labs Blocking Addresses From DeFi Protocols? Ari Redbord Says No
Tornado Cash Sanctioned. Did the Government Overstep Its Bounds?
The Chopping Block: Did OFAC Overstep by Sanctioning Tornado Cash?
Given the Sanctions on Tornado Cash, Is Ethereum Censorship Resistant?
Preston Van Loon on Ethereum's Merge and His Lawsuit Against Treasury
Legislation
Digital Commodities Consumer Protection Act of 2022
Europe’s MiCa bill
Previous coverage of Unchained on legislation:
Why Senator Pat Toomey Thinks SEC Chair Gary Gensler Is Wrong About Crypto
Congressman Ro Khanna: How to Get More Democrats into Web3
Why the Crypto Industry Believes SEC Regulation by Enforcement Hurts US Consumers
SEC charges against Kim Kardashian
The SEC fined reality TV star Kim Kardashian $1.26 million for promoting a crypto security without proper disclosure.
Fortune article: The SEC’s Kardashian fine was a dumb publicity stunt
Stablecoins
Stablecoin Draft Bill
Bloomberg article: Senator Pat Toomey Still Sees Chance of Stablecoin Legislation This Year
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The Blockchain Association recently launched a new political action committee (PAC) designed to build relationships with pro-crypto Congressional candidates.
In this episode of The Scoop, the Blockchain Association’s Executive Director Kristin Smith shares the objectives of the new Blockchain Association PAC, and why she believes Congress is the appropriate authority to design a regulatory framework for the crypto industry.
As Smith explains, the Blockchain Association PAC is intended to promote pro-crypto candidates:
“For us, this PAC is really about building relationships… This isn't the type of PAC where we go and buy a bunch of airtime or print out a bunch of mailers and spend a few hundred thousand dollars or $1,000,000 in a single race.”
While SEC Chair Gary Gensler recently remarked that multiple crypto regulators could undermine the SEC’s efforts, Smith believes the Congress is in the best position to effectuate change:
“We need Congress to step in and help sort through these issues because they are the ones that can grant new authority and they're the ones that have the flexibility to design a regulatory system that matches the risks that we see in crypto.”
Episode 94 of Season 4 of The Scoop was recorded at SALT New York 2022 on September 13 with The Block's Frank Chaparro, and Blockchain Association's Executive Director Kristin Smith.
Listen below, and subscribe to The Scoop on Apple, Spotify, Google Podcasts, Stitcher or wherever you listen to podcasts. Email feedback and revision requests to podcast@theblockcrypto.com.
This episode is brought to you by our sponsor Tron
About Tron
TRON is dedicated to accelerating the decentralization of the internet via blockchain technology and decentralized applications (dApps). Founded in September 2017 by H.E. Justin Sun, the TRON network has continued to deliver impressive achievements since MainNet launch in May 2018. July 2018 also marked the ecosystem integration of BitTorrent, a pioneer in decentralized Web3 services boasting over 100 million monthly active users. The TRON network completed full decentralization in December 2021 and is now a community-governed DAO. | TRONDAO | Twitter | Discord |
The Blockchain Association — a trade association that lobbies US politicians on behalf of the crypto industry — saw explosive growth in 2021, thanks in part to the controversy surrounding the crypto tax reporting provisions that were included as part of a $1.2 trillion infrastructure bill that went through Congress last year.
In this episode of The Scoop, Kristin Smith, Executive Director of the Blockchain Association, appears on the show for a record-breaking fifth appearance (pulling ahead of FTX’s Sam Bankman-Fried by one) to explain the crypto-friendly momentum that she sees building among American politicians.
According to Smith, there are three main reasons why the crypto lobbying industry is gaining influence in Washington:
“Between the professionals on the ground, the political giving, and the people back at home that care about this space, the crypto industry is in a much, much better position than we've ever been to date.”
Although total US crypto trade association lobbying decreased from $1,034,663 in Q4 of last year to $917,406 in Q1 of 2022, the Blockchain Association increased their Q1 lobbying efforts from $540,000 to $590,000 — over 60% of the industry total for the quarter.
Relative to the total crypto market cap — which peaked at just over $3 trillion last November — the amount of money being directed towards crypto lobbying may seem low. But according to Smith, “the amount of money it takes to influence Washington is laughably small.”
In the US, direct donations to candidates are limited to $2,900 per election, or $5,800 per cycle.
Although they are limited in size, direct donations carry weight with politicians because the funds go directly to the campaign, says Smith.
Episode 37 of Season 4 of The Scoop was recorded remotely with The Block’s Frank Chaparro and Kristin Smith, Executive Director at The Blockchain Association
Listen below, and subscribe to The Scoop on Apple, Spotify, Google Podcasts, Stitcher or wherever you listen to podcasts. Email feedback and revision requests to podcast@theblockcrypto.com.
This episode is brought to you by our sponsors Fireblocks, Coinbase Prime & Cross River
Fireblocks is an enterprise-grade platform delivering a secure infrastructure for moving, storing, and issuing digital assets. Fireblocks enables exchanges, lending desks, custodians, banks, trading desks, and hedge funds to securely scale digital asset operations through the Fireblocks Network and MPC-based Wallet Infrastructure. Fireblocks serves over 725 financial institutions, has secured the transfer of over $1.5 trillion in digital assets, and has a unique insurance policy that covers assets in storage & transit. For more information, please visit www.fireblocks.com.
About Coinbase Prime
Coinbase Prime is an integrated solution that provides institutional investors with an advanced trading platform, secure custody, and prime services to manage all their crypto assets in one place. Coinbase Prime fully integrates crypto trading and custody on a single platform, and gives clients the best all-in pricing in their network using their proprietary Smart Order Router and algorithmic execution. For more information, visit www.coinbase.com/prime.
About Cross River
Cross River is powering today’s most innovative crypto companies, with banking and payments solutions you can rely on, including fiat on/off ramp solutions. Whether you are a crypto exchange, NFT marketplace, or wallet, Cross River’s API-based, all-in-one platform enables banking as a service, ACH & wire transfers, push-to-card disbursements, real-time payments, and virtual accounts and subledgers. Request your fiat on/off ramp solution now at crossriver.com/crypto.
Kristin Smith, executive director at Blockchain Association, and Jake Chervinsky, head of Policy at Blockchain Association, discuss the current state of crypto regulation. Show topics:
why 2021 was a watershed year for crypto regulation and lobbying
why Jake decided to move from Compound Labs to Blockchain Association
what Kristin and Jake think about the current state of regulation in the crypto industry
how crypto education will play a significant role in Blockchain Association efforts going forward
how crypto will affect midterm elections
why Kristin thinks crypto will not be a partisan issue long term
what sort of budget Blockchain Association functions on
what Kristin and Jake think about the President’s Working Group report on stablecoins
why Jake does not think the US should issue a CBDC
what Blockchain Association’s take is on SEC commissioner Hester Peirce’s “safe harbor” proposal
why Kristin and Jake believes the idea of a “crypto czar” is not feasible
how regulators are treating DeFi going into 2022
how crypto tax guidelines could be improved for centralized exchanges
how Blockchain Association thinks tax code 6050I should be applied
what issues could arise from DAOs in 2022+
what listeners can do to address the different regulatory topics discussed in this podcast
Thank you to our sponsor!
Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021
Show Links
Guests
Jake Chervinsky: https://twitter.com/jchervinsky
Kristin Smith: https://twitter.com/kmsmithdc
Previous Unchained appearances:
https://unchainedpodcast.com/everything-you-need-to-know-about-the-looming-battle-over-privacy-in-crypto/
https://unchainedpodcast.com/how-congress-might-pass-laws-bad-for-proof-of-stake-and-defi/
https://unchainedpodcast.com/all-things-crypto-regulation-with-jake-chervinsky/
https://unchainedpodcast.com/why-is-the-proposed-fincen-rule-for-unhosted-wallets-being-pushed-so-quickly/
https://unchainedpodcast.com/how-congress-might-pass-laws-bad-for-proof-of-stake-and-defi/
https://unchainedpodcast.com/what-the-crypto-industry-could-see-under-a-biden-administration/
https://unchainedpodcast.com/when-is-a-token-decentralized-enough-to-not-be-a-security-ep-056/
The Blockchain Association
Website: https://theblockchainassociation.org/
Twitter: https://twitter.com/BlockchainAssn
2021 growth: https://theblockchainassociation.org/crypto-industrys-leading-trade-association-more-than-doubles-membership-in-2021/
Jake joining the team: https://www.politico.com/newsletters/politico-influence/2021/11/09/blockchain-association-fills-out-its-washington-team-with-seasoned-hands-798774
Regulatory Topics Discussed:
a16z
https://a16z.com/2021/10/13/an-agenda-for-the-future-of-the-internet/
Tax Code 6050i
https://www.coincenter.org/congress-takes-its-war-on-cash-to-digital-assets/
https://unchainedpodcast.com/not-reporting-info-on-some-transaction-partners-could-soon-be-a-felony/
Infrastructure Bill
https://twitter.com/jerrybrito/status/1461317078175072263
President’s Working Group stablecoin report
https://www.coindesk.com/policy/2021/11/01/biden-administration-to-congress-put-stablecoins-under-federal-supervision-or-we-will/
FATF Guidance
https://twitter.com/coincenter/status/1453700485484097537
Articles Jake Mentioned
Jake on CBDCs: https://www.coindesk.com/layer2/2021/12/21/secure-americas-financial-strength-with-stablecoins-not-central-banks/
Gabriel Shapiro on DAOs: https://lexnode.substack.com/p/wyomings-legal-dao-saster
Morgan Harper thread: https://twitter.com/mh4oh/status/1463219384776806402
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A high-wire fight in Washington, DC over crypto tax reporting provisions included in a $1.2 trillion infrastructure bill drew widespread attention and impassioned remarks from supporters, opponents and powerful members of Congress.
And while Kristin Smith, executive director of the Blockchain Association, admits that the legislation's current language is not perfect, the collective show of force from advocacy groups, business leaders and think tanks was "like no other thing I have experienced in my 20 years in Washington, D.C.”
On this episode of The Scoop, Smith joined host Frank Chaparro and senior reporter Kollen Post to discuss the legislation live during the podcast as senators conducted their last vote before sending the bill out of the chamber.
According to Smith, the fight over the crypto tax reporting requirements — which opponents say puts undue burdens on businesses that aren't clearly defined as "brokers" of digital assets and at one point risked choosing technological winners and losers — is far from over.
In the end, Smith concedes that there ultimately may not be an opportunity to add amendments to the bill. However, the fight put the crypto industry front-and-center in Washington for the first time, with Smith saying: "We went from zero to 60 overnight, and we have caught the attention of the entire policymaking class in Washington."
The bill now makes its move into the House which will reconvene in September for next steps.
This episode of The Scoop also focused on:
Treasury Secretary Janet Yellen’s position on crypto
The players in the DC crypto scene today
Which policymakers and politicians favor amendments to the bill.
Episode 47 of Season 3 of The Scoop was recorded remotely with The Block’s Frank Chaparro and Kristin Smith, Executive Director at Blockchain Association.
Listen below, and subscribe to The Scoop on Apple, Spotify, Google Podcasts, Stitcher or wherever you listen to podcasts. Email feedback and revision requests to podcast@theblockcrypto.com.
This episode is brought to you by our sponsors Eventus, Kraken, and Exodus
Eventus is the leading global provider of multi-asset class trade surveillance, transaction monitoring and market risk solutions. Eventus offers a powerful, award-winning trade surveillance platform that is easy to deploy, customize and operate. Eventus is proven in the most complex, high-volume and real-time environments and supports many of the industry’s leading crypto exchanges including Coinbase, Gemini, ErisX and OSL. The company’s rapidly growing client base relies on Eventus’ responsive support and product development teams to overcome its most pressing regulatory challenges.
About Kraken
Whether you’re an experienced crypto trader or just starting out, Kraken has the tools to help you achieve financial freedom. With 50+ cryptocurrencies to choose from, industry-leading security and a wide variety of features to suit any investing strategy, Kraken puts the power in your hands to buy, sell and trade digital assets. Visit Kraken.com to get started today.
About Exodus
Exodus is leading the world out of traditional finance by building beautiful and user-friendly crypto products. Forget having to learn the nuances of different cryptocurrencies. Exodus is designed for everyone and hides the complex details behind a beautiful and intuitive interface.
Buy and sell one cryptocurrency for another from the comfort of your wallet, in seconds. Funds remain under your full control.
Secure, manage, stake, and exchange all of your favorite cryptocurrencies from one wallet. No account registration is required. Download Exodus at Exodus.com or directly from Google Play and the iOS App Store and you’re ready to go.
Kristin Smith, executive director at the Blockchain Association, discusses the latest news on a provision in the infrastructure bill that seeks to raise $28B from the crypto industry in taxes. Show highlights:
how the original crypto provision within the infrastructure bill came to be
why the expansion of the term “broker” is problematic in the original language of the bill
what the Treasury and the White House have to do with this bill and how they, along with Senator Portman, are resisting change
how Senators Ron Wyden, Pat Toomey, and Cynthia Lummis are attempting to change the language of the provision through an amendment
how the crypto community rallied around Wyden's amendment
why Kristin believes a rival amendment put forward by Senators Warner and Portman and supported by the White House late Thursday is worse than the bill’s original language
when the Senate will be voting on the amendments
how the amendment the White House supports seems harmful to proof-of-stake networks and bad for DeFi
whether this is part of a master plan to regulate crypto in the US
what Kristin hopes happens during the vote
how the crypto community can have its voice heard
how to fix the issues within the crypto policy world so this doesn’t happen again
Thank you to our sponsors!
Crypto.com: https://crypto.onelink.me/J9Lg/unchainedcardearnfeb2021
Episode Links
Kristin Smith: https://twitter.com/KMSmithDC
Blockchain Association: https://theblockchainassociation.org/
Infrastructure Bill Information
Latest Coverage:
https://decrypt.co/77838/rival-amendment-senate-infrastructure-bill-threatens-proof-stake
https://decrypt.co/77859/crypto-industry-mobilizes-to-stop-controversial-tax-plan
https://decrypt.co/77841/biden-crypto-infrastructure-bill-amendments
https://www.eff.org/deeplinks/2021/08/16-civil-society-organizations-call-congress-fix-cryptocurrency-provision
https://decrypt.co/77681/senators-move-exempt-bitcoin-miners-tax-provision-infrastructure-bill
https://www.forbes.com/sites/jonathanponciano/2021/08/04/senators-propose-change-to-new-crypto-rules-for-tax-reporting-heres-whos-affected/
https://twitter.com/BlockchainAssn/status/1422976741715361792
https://twitter.com/jerrybrito/status/1422002228102107142
https://www.theblockcrypto.com/linked/113196/wyden-crypto-language-in-infrastructure-bill-fails-to-understand-how-the-technology-works
https://www.coindesk.com/new-infrastructure-bill-looks-to-raise-30b-through-crypto-taxes
https://twitter.com/jchervinsky/status/1421150344051048451
https://twitter.com/NeerajKA/status/1421242689148932105
https://www.cnn.com/2021/08/01/politics/bipartisan-infrastructure-bill-collins-manchin-senate-cnntv/index.html
https://www.coindesk.com/gop-lawmaker-janet-yellens-treasury-likely-behind-surprise-crypto-bill
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It was a tweet heard 'round the crypto world.
A breaking news account fired off, in all caps, an unsubstantiated headline that the U.S. Treasury Department was set to crack down on a number of unknown banks for their activity in the crypto market. Soon after the tweet's release, several industry insiders — including the Blockchain Association's Kristin Smith — threw cold water on its key claim.
"There's a lot of rumors going around that don't have any truth of foundation," Smith said.
In this episode of The Scoop, Smith unpacked the erroneous rumor, why U.S. Treasury Secretary Janet Yellen isn't making bitcoin a priority right now, how crypto policy works, and why crypto market participants should be concerned about the Financial Action Task Force decision coming this June.
As Smith put it during the interview:
"The thing that we do have to worry about at Treasury isn't coming from the top people as I said but Treasury's interaction with the Financial Action Task Force or the FATF. The FATF has proposed something that is fairly scary ... if adopted would require a lot of different entities in the U.S. to register as money services businesses."
Smith went on to add: "The threat right now is not Yellen."
This episode is brought to you by our sponsors Bakkt, Kraken, and Exodus
Bakkt® unlocks the $1.2+ trillion of digital assets that is currently held in cryptocurrencies, rewards and loyalty points, gaming assets and merchant stored value. We began in 2018 with the vision to bring trust and transparency to digital assets. Through the Bakkt Warehouse and Bakkt Bitcoin Futures and Options contracts, we serve institutional clients in an end-to-end regulated market with true price transparency. For consumers, Bakkt aggregates digital assets to enable instant liquidity and to empower users to trade, transfer and pay however they want. Visit Bakkt.com for more information
About Kraken
Whether you’re an experienced crypto trader or just starting out, Kraken has the tools to help you achieve financial freedom. With 50+ cryptocurrencies to choose from, industry-leading security and a wide variety of features to suit any investing strategy, Kraken puts the power in your hands to buy, sell and trade digital assets. Visit Kraken.com to get started today.
About Exodus
Exodus is leading the world out of traditional finance by building beautiful and user-friendly crypto products. Forget having to learn the nuances of different cryptocurrencies. Exodus is designed for everyone and hides the complex details behind a beautiful and intuitive interface.
Buy and sell one cryptocurrency for another from the comfort of your wallet, in seconds. Funds remain under your full control.
Secure, manage, stake, and exchange all of your favorite cryptocurrencies from one wallet. No account registration is required. Download Exodus at Exodus.com or directly from Google Play and the iOS App Store and you’re ready to go.
Jeremy Allaire of Circle Pay and Kristin Smith of the Blockchain Association explain the impact of and motivation behind Treasury Secretary Steve Mnuchin’s proposed FinCEN rule that targets “unhosted” wallets. In this episode, they cover:
what the new FinCEN rule says, and how it would impact unhosted or self-hosted wallets, as well as crypto businesses
why they believe this is really politically motivated and unilateral midnight rule making by Secretary Mnuchin
what other bureaucrats and policymakers think should be done instead
whether the rule only affects businesses rather than individuals
what information will be recorded according to the rule
ways to circumvent compliance
how the rule affects DeFi and Web3
the procedural hurdles Mnuchin took to propose the rule, and what they recommend the crypto community to do try to stop the implementation of the rule
how the rule comports with European GDPR regulations
which government entities will be tasked with making the regulatory changes the space needs
why President-Elect Joe Biden’s administration may be more favorable for the space
Thank you to our sponsors!
Crypto.com: http://crypto.com
1inch: http://1inch.exchange
Episode links:
Jeremy Allaire: https://twitter.com/jerallaire
Kristin Smith: https://twitter.com/kmsmithdc
Circle: https://www.circle.com/en/
The Blockchain Association: https://theblockchainassociation.org
Stories on proposed rule:
https://www.coindesk.com/fincen-proposes-kyc-rules-for-crypto-wallets
https://www.theblockcrypto.com/post/88347/treasury-crypto-wallets-reporting-rule
Effect on DeFi: https://twitter.com/jerallaire/status/1340060806088671232?s=20
https://twitter.com/jchervinsky/status/1340050400871911424?s=20
Coin Center response: https://www.coincenter.org/a-midnight-rule-for-cryptocurrency-transaction-reports/
Brian Armstrong’s earlier tweet thread: https://twitter.com/brian_armstrong/status/1331745196887867393
Collins Belton’s tweet thread: https://twitter.com/collins_belton/status/1340051986008350721?s=20
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Jake Chervinsky, general counsel at Compound Labs, and Kristin Smith, executive director of The Blockchain Association, talk about the storm brewing in the cryptosphere involving self-custody and privacy. In this episode, they cover:
the differences between hosted and self-hosted wallets and how transactions between them differ
why the ability to transact from self-hosted wallets is so important
compliance and regulation in the traditional financial world and how it could affect self-custody
the “Swiss rule” and what it could mean for the rest of the world
the proposal by FinCEN to lower the threshold for collecting data on transactions from $3,000 to $250
how regulators might achieve their goals without “dragnet” surveillance
how the amount of crime and money laundering in the traditional financial system compares to that in the crypto world
why OTC brokers are considered the most significant money laundering risk in crypto, and how that risk might be mitigated
how different political environments can influence the value of peer to peer transactions
whether Americans should be willing to give up some of their financial privacy in favor of security
what the recent statement by the DOJ's cryptocurrency enforcement framework labeling anonymous transactions as "high-risk activity indicative of possible criminal conduct" could mean for privacy coins like Monero and Zcash
Gary Gensler's appointment as head of Biden's financial policy transition team and whether to view it as a positive or negative for crypto
whether they think the incoming Congress will be in favor of more surveillance or more privacy
whether there might eventually be regulations for developers who write code for self-hosted wallets
how potential rules regarding self-custody could affect non-monetary items like NFTs
and the next big developments they are watching out for regarding this issue
Thank you to our sponsor!
Crypto.com: http://crypto.com
Episode links:
Jake Chervinsky: https://twitter.com/jchervinsky
Compound Labs: https://compound.finance
Kristin Smith: https://twitter.com/kmsmithdc
The Blockchain Association: https://theblockchainassociation.org/
https://twitter.com/BlockchainAssn
FinCen NPRM: https://www.federalregister.gov/documents/2020/10/27/2020-23756/threshold-for-the-requirement-to-collect-retain-and-transmit-information-on-funds-transfers-and
Coin Center commentary on lowering FinCEN threshold: https://www.coincenter.org/app/uploads/2020/10/Coin-Center-Comment-FinCEN-FRB-250-threshold.pdf
Unchained episode about the FATF travel rule: https://unchainedpodcast.com/why-the-travel-rule-is-one-of-the-most-significant-regulations-in-crypto/
The choice of Gary Gensler to lead the financial policy transition team:
https://www.wsj.com/livecoverage/trump-biden-election-day-2020/card/peMRHGPJasECSPLezSFx
https://www.coindesk.com/biden-confirms-gary-gensler-will-lead-financial-policy-transition-team
Shapeshift delists Zcash: https://www.coindesk.com/shapeshift-delists-privacy-coin-zcash-over-regulatory-concerns
Jessie Liu interview on Unchained: https://unchainedpodcast.com/what-you-need-to-know-about-the-dojs-cryptocurrency-enforcement-framework/
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Kristin Smith is the Executive Director of The Blockchain Association. In this episode Kristin sits down for her second time with Frank, Ryan, and Steven to discuss:
Where we stand after the Libra hearings and predictions on how this story will play out in 2020
The important differences between Republicans and Democrats in the manner they introduce crypto related legislation
The Blockchain Association's efforts in making the U.S. more appealing for blockchain businesses to operate
The implications of Brad Sherman being appointed as new chair of the subcommittee of the Financial Services Committee
Listen below, and subscribe to The Scoop on Apple, Spotify, Google Play, Stitcher, or wherever you listen to podcasts. Email feedback and revision requests to podcast@theblockcrypto.com.
Frank Chaparro and Ryan Todd speak to Kristin Smith, the Director of External Affairs at the Blockchain Association in this week's episode of The Scoop. Frank, Ryan and Kristin discuss the implications of the case against Kik as well as the recently reintroduced Token Taxonomy Act. Kristin also reveals what it's like to represent leading crypto companies on the hill, and the reception of crypto and blockchain in D.C.
A clip from next week's The Scoop episode with Kristin Smith, Director of External Affairs at the Blockchain Association. Frank Chaparro, Ryan Todd and Kristin Smith discuss the implications of the recent case against Kik.
Subscribe and listen to the entire episode next Tuesday.
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