The Challenges Faced by the Cryptocurrency Industry
Marisa Coppel, Senior Counsel at the Blockchain Association, discussed the challenges faced by the cryptocurrency industry, particularly in relation to the SEC’s regulatory approach. She expressed concerns about the SEC potentially slowing down the industry’s progress due to various factors. In an interview with Thinking Crypto, Coppel highlighted the Biden Administration’s negative stance on crypto and the uncertainty surrounding regulatory developments.
The Implications of Regulatory Proposals
Coppel mentioned her recent testimony in front of the IRS, where she raised important questions about crypto-related issues. She suggested that regulators may not fully understand the consequences of their proposals, especially for non-custodial wallet software developers and DeFi projects. Coppel emphasized that enacting regulations without careful consideration could have a negative impact on innovation within the industry.
The SEC’s Perspective on Crypto-related Accounting Practices
The conversation also touched on the SEC’s Staff Accounting Bulletin (SAB) 121, which outlines the SEC’s viewpoint on crypto-related accounting practices. The Government Accountability Office (GAO) recently reviewed SAB 121 and concluded that it qualifies as a rule under the Congressional Review Act (CRA) and the Administrative Procedures Act (APA). Coppel discussed the potential implications of this opinion and its influence on future legal challenges.
Legal Setbacks for the SEC
Coppel spoke about the Grayscale appeal and how judges criticized the SEC for their arbitrary and capricious actions. She expressed optimism about the changing dynamics, with increasing scrutiny and legal setbacks for the SEC. The ongoing Ripple case was also discussed, highlighting its potential implications for the broader industry.
“I mean, it’s really hard to tell. I don’t know. It would be surprising if they could agree on a settlement. I think the SEC would have to really fall on their sword, you know, for that.”
The SEC’s Lawsuit Against Coinbase and Binance
Coppel mentioned that the Blockchain Association filed an amicus brief supporting Coinbase in an enforcement action brought by the SEC. The case is scheduled for oral argument in January, and Coppel expressed hope that the judge would consider the lack of regulatory clarity in the industry. The conversation concluded with insights into the SEC’s lawsuit against Binance, with Coppel noting that similar arguments to the Coinbase case might apply, although the specific facts differ.
Hot Take: The Cryptocurrency Industry Navigating Regulatory Challenges
Marisa Coppel, Senior Counsel at the Blockchain Association, has shed light on the challenges faced by the cryptocurrency industry in dealing with regulatory authorities such as the SEC. She expressed concerns about potential attempts to hinder industry progress and highlighted uncertainties surrounding regulatory developments. Coppel emphasized the importance of regulators fully understanding the implications of their proposals to avoid hindering innovation within the industry. The discussion also touched on legal battles involving major players like Coinbase and Binance, with Coppel expressing optimism about shifting dynamics and increasing scrutiny faced by regulatory authorities. These developments have significant implications for both individual projects and the broader cryptocurrency industry.
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