Brian Quintenz is the Global Head of Policy at a16z crypto and a former commissioner at the U.S. Commodity Futures Trading Commission.
In this episode, Quintenz explains how the SEC's failure to issue updated guidance for the crypto industry has created a legislative opportunity for clarity.
According to Quintenz, "Congress needs to show the way by creating the framework that the SEC is refusing to contemplate."
Outline:
0:36 Policy & regulation overview
2:43 Securities v. commodities
06:37 Registered securities
11:58 Special Purpose Broker-Dealers
14:49 a16z’s policy uutlook
18:34 Ponzi schemes
21:31 CeFi regulation
27:16 Lummis x Gillibrand’s crypto bill
30:30 Token decentralization
32:32 Legislative hurdles
Brian Quintenz, head of policy for a16z crypto, and Nic Carter, general partner at Castle Island Ventures, talk about Operation Choke Point 2.0, the relationship between the government and the crypto industry, the status of different tokens as securities or commodities, and potential future developments in the space
Show highlights:
what the original Operation Choke Point was like
the "evidence" that shows that Operation Choke Point 2.0 against crypto is real, according to Nic
how hard it is for crypto companies to get banked in the U.S.
whether crypto had anything to do with the current banking crisis
whether agencies such as the CFTC and the SEC are performing coordinated action against the industry
how the collapse of FTX changed the approach of banking regulators toward crypto
whether the U.S. needs to change its regulatory approach to maintain its status as a global leader
whether crypto is a threat to the U.S. dollar and the financial system
how Tether has benefited from the recent regulatory events
why Brian says that the SEC has already demonstrated that BTC and – also ETH -- are not securities
Thank you to our sponsors!
Crypto.com
Halborn
Guests:
Brian Quintenz, head of policy for a16z crypto
Nic Carter, general partner at Castle Island Ventures
Did The Government Start A Global Financial Crisis In An Attempt To Destroy Crypto?
Operation Choke Point 2.0 Is Underway, And Crypto Is In Its Crosshairs
Previous coverage of Unchained on the banking situation:
Jim Bianco on Why the Banking System Has Always Been Broken
The Fed Is In Checkmate: What Will Powell Do?
The Fall of SVB: What Happened and How It Affects Crypto
Previous coverage of Unchained on the recent regulatory crackdown:
Why the CFTC Case Against Binance Will Have Very Important Consequences for Crypto
Coinbase’s Top Lawyer Calls SEC Wells Notice a ‘Massive Overreach’
Links
NYMAG: Barney Frank Talks More About the Surprise Shuttering of Signature Bank
Unchained:
Was Signature Bank Actually Insolvent?
Regulators Close Signature Bank Following SVB Collapse
CFTC Sues Binance and CZ Over US Regulatory Violations
CoinDesk Editorial: It Sure Looks Like the U.S. Is Trying to Kill Crypto
The Administration’s Roadmap to Mitigate Cryptocurrencies’ Risks | NEC | The White House
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Brian Quintenz was a commissioner on the Commodity Futures Trading Commission from 2017 until April of this year. The CFTC serves to regulate the derivative markets, and Brian particularly worked to embrace innovative technologies and emphasize the power of free markets, even in a regulatory environment.
He has been an advocate for the exploration and growth of the crypto space and is provides an insider’s perspective to deal with the question of crypto regulation. His sober and pragmatic takes are deeply insightful, and there is a clear alignment of values between Brian and the industry.
This episode dives into the disruptive nature of cryptocurrencies, and how we can make sense of this Cambrian explosion of new assets.
GET THIS EPISODE'S DEBRIEF: https://shows.banklesshq.com/p/exclusive-debrief-the-digital-commodity
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------ 📣 SoRare | Collect and Play! https://bankless.cc/SoRare ------ Topics Covered:
0:00 Intro 7:00 Brian Quintenz 9:29 Does the US Hate Crypto? 14:10 Brian’s Take on Crypto 20:36 The CFTC 26:36 Congress is Great at 2 Things 31:14 Digital Farmers need Futures 38:05 Understand It Before You Attack 47:03 SEC vs CFTC 54:04 Crypto Commodities 1:03:35 Tokens Transcend Labels 1:10:00 The New Paradigm 1:17:54 An Explosion of Assets 1:25:14 Rights and Innovation 1:32:20 Good Regualation 1:39:00 Closing & Disclaimers
------ Resources:
Brian on Twitter https://twitter.com/BrianQuintenz?s=20 Episode with Hester Peirce https://shows.banklesshq.com/p/-the-sec-and-defi-hester-peirce
----- Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.
Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here: https://newsletter.banklesshq.com/p/bankless-disclosures
CFTC Commissioners Dan Berkovitz and Brian Quintenz discuss the difficulties of regulating crypto derivatives and DeFi. Show highlights:
their backgrounds
what the CFTC’s duties are regarding crypto
how the CFTC’s jurisdiction has evolved over the years
why Commissioner Quintenz believes SEC Commissioner Hester Peirce’s safe harbor proposal is “brilliant”
what relationship the CFTC and SEC have when making decisions on crypto assets
why the commissioners believe CFTC’s complaints regarding BitMEX are “well-founded”
why formal regulation for crypto derivatives is unlikely to be produced by the CFTC
why leveraged derivatives products are a “concern” to the CFTC
what makes regulating DeFi platforms so difficult
when it comes to DeFi, who is a natural entity for the CFTC to regulate, if any
whether the CFTC would ever go after DeFi "market participants," who the CFTC also regulates
why smart contracts involving futures could be illegal
how the possibility that smart contracts could be illegal squares with the view that software development is a form of free speech
whether the CFTC could prosecute developers who write smart contracts
whether the CFTC needs to re-write its laws in light of DeFi innovation
why Commissioner Berkovitz thinks the DeFi “winners” will be protocols that focus on meeting regulatory requirements
why the CFTC approved Bitcoin futures in 2017 while the SEC has not yet approved a Bitcoin ETF
how a Bitcoin ETF could solve Bitcoin’s accounting issue, which currently gives companies no upside for adding BTC to its balance sheet
Thank you to our sponsors!
Crypto.com: https://crypto.onelink.me/J9Lg/unchainedcardearnfeb2
Tezos: https://tezos.com/discover?utm_source=laura-shin&utm_medium=podcast-sponsorship-unconfirmed&utm_campaign=tezos-campaign&utm_content=hero
Conjure: https://conjure.finance
Episode Links
People
Dan Berkovitz, CFTC Commissioner (Sep 2018+)
CFTC website: https://www.cftc.gov/About/Commissioners/CommissionerDanMBerkovitz/index.htm
Twitter: https://twitter.com/CFTCberkovitz
Brian Quintenz, CFTC Commissioner (Aug 2017+)
CFTC website: https://www.cftc.gov/About/Commissioners/BrianQuintenz/index.htm
Twitter: https://twitter.com/CFTCquintenz
Related Links
CFTC digital asset resources: https://www.cftc.gov/digitalassets/index.htm
Commissioner Berkovitz DeFi speech: https://www.theblockcrypto.com/linked/107769/cftc-commissioner-criticizes-defi-decries-lack-of-intermediaries
Commissioner Quintenz smart contracts/blockchain speech: https://www.cftc.gov/PressRoom/SpeechesTestimony/opaquintenz16
CFTC jurisdiction over digital assets: https://www.cftc.gov/PressRoom/SpeechesTestimony/giancarlostatement010418
CFTC BitMEX complaint: https://www.cftc.gov/PressRoom/PressReleases/8270-20
FTX and Binance remove high leverage: https://decrypt.co/76858/ftx-and-binance-remove-high-leverage-from-exchanges
SEC Commissioner Hester Peirce’s safe harbor proposal: https://www.sec.gov/news/public-statement/peirce-statement-token-safe-harbor-proposal-2.0
Bitcoin futures approval from CFTC in 2017: https://www.businessinsider.com/bitcoin-price-futures-trading-exchanges-cftc-2017-12
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