What to expect from crypto regulation after the FTX scandal

At our TC Sessions: Crypto event last week in Miami, I sat down with Bitwise Asset Management General Counsel and Chief Compliance Officer Catherine Dowling, Perkins Coie Partner Sarah Stillman, and Paradigm Policy Director Justin Slaughter to talk about the crypto regulatory landscape , with a specific focus on the US What we didn’t know heading into the panel was how much would change in the industry due to the fallout from the FTX crash the previous week.

Slaughter in particular felt the impact of the FTX fiasco firsthand: Paradigm recorded a $278 million investment in the stock after the bankruptcy filing. We talked about this early on, but mostly as a starting point to discuss the ramifications for the state of regulation, which itself was already a contentious mess, especially as it pertains to US lawmakers and the various federal regulators involved in the market , including the SEC and CFTC.

The key takeaways, which all three panelists essentially agreed on, is that the benefit of the FTX situation is that there is now more momentum than ever to achieve some sort of US crypto-specific regulatory framework, and that there is now a large demand from the industry side as well as an opportunity to further educate regulators as they look for light coming from the FTX collapse. On the incentive side, there is harm reduction as regulators and legislators no longer want FTX scenarios to continue to develop, as well as FOMO for business being done overseas in markets where they are racing to promote crypto adoption .

Check out the full panel above for much more.

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