The legal realm epitomizes civility, where even adversaries maintain a facade of camaraderie by addressing each other as “my friends” amidst contentious debates or appending a subtly pointed “respectfully” to their incisive arguments. Anticipating a clash of ideologies at a recent Columbia Business School gathering, I had hoped for a lively exchange between Ladan Stewart, the former head of the SEC’s crypto litigation unit responsible for spearheading the agency’s lawsuit against Coinbase, and vocal blockchain advocate Rebecca Rettig from Polygon.
Following the intense courtroom battle over the fate of the SEC’s Coinbase lawsuit before Judge Katherine Failla in the Southern District of New York, which culminated in a decisive victory for the agency earlier this month, Stewart parted ways with the SEC. True to tradition, she transitioned through the revolving door to White & Case, a global law firm, where she will contribute to the establishment of a practice specializing in crypto and cyber defense. In an interview with Bloomberg, Stewart expressed her conviction that “crypto is here to stay.”
Despite her alignment with the defense side, Stewart symbolically represented the SEC on the panel that evening. While refraining from divulging specifics about pivotal cases she handled, such as the recent Wells Notice directed at decentralized exchange Uniswap, Stewart shared her reflections on the SEC’s contentious regulatory stance towards the blockchain industry.
Discussing the Coinbase litigation, Stewart validated the industry’s apprehensions by suggesting that Failla’s recent ruling would embolden SEC Chair Gary Gensler and the agency’s legal team. She remarked, “It’s probably going to give the SEC that sort of comfort it needs to proceed as it has been.” Asserting that the SEC is unlikely to relent in pursuing regulatory actions in the crypto sphere, Stewart also weighed in on the ongoing debate regarding regulatory clarity and the perception of the SEC’s enforcement strategies.
Touching upon the unresolved issue of whether tokens themselves constitute securities or if it is the act of their sale that triggers an investment contract, the panel engaged in a spirited exchange. Stewart clarified the SEC’s stance that the underlying asset is not deemed a security; rather, it is the offer and sale that fall under regulatory purview.
As the discourse unfolded, tensions rose when Rettig challenged the notion of what should be subject to registration for compliance within the industry. Despite the lighthearted banter that ensued, the underlying divide between industry players and the SEC on regulatory compliance became apparent.
Amidst the nuanced discussions and diverging viewpoints, the host, Columbia Business School adjunct Omid Malekan, interjected with gratitude for the panel’s deliberation on complex issues, emphasizing the importance of such dialogues.
In the realm of decentralized news, the fluctuating price of Bitcoin against a backdrop of global uncertainty and persistent inflationary pressures continues to unsettle markets, while legislative developments around stablecoins and other key bills signal a shifting regulatory landscape.
Leo Schwartz
@leomschwartz
DECENTRALIZED NEWS
The volatility in the price of Bitcoin amid global economic uncertainties and inflationary concerns challenges expectations of potential interest rate adjustments. ( Fortune)
Sherrod Brown, Chair of the Senate Banking Committee, hinted at the possibility of combining stablecoin legislation with other significant bills, including measures related to marijuana banking oversight. ( Bloomberg)
On a related note, Senators Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.) introduced a bill focused on stablecoins, aiming to prohibit algorithmic stablecoins. ( CoinDesk)
The eagerly anticipated Bitcoin halving is on the horizon, prompting divergent perspectives on its implications for the leading cryptocurrency. ( CNBC)
In other developments, two key executives bid farewell to OKX, the second-largest cryptocurrency exchange based in Seychelles. ( CoinDesk)
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