The Crypto Exchange

In this episode of the Crypto Exchange, Genna Garver is joined by John D'Agostino, head of strategy for Coinbase Institutional, to discuss the significant developments in the crypto industry following the Senate's approval of the GENIUS Act and the anticipated CLARITY Act. These legislative moves aim to establish a regulatory framework for stablecoins and clarify the status of digital assets in the U.S.John and Genna highlight the release of pent-up momentum in the crypto space, previously hindered by a challenging regulatory environment. They discuss the potential for the U.S. to become a leader in digital asset regulation, the ongoing challenges of regulatory uncertainty, and the implications for institutional players.The episode underscores the transformative potential of blockchain technology in financial markets and the evolving regulatory landscape that could unlock new opportunities for innovation. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

In this special crossover edition of the Payments Pros and Crypto Exchange podcast, Carlin McCrory is joined by colleagues Alex Barrage and Ethan Ostroff to discuss recent legislative updates surrounding payment stablecoins. The group begins by exploring the advantages of payment stablecoins, such as their 24/7 availability and programmability, and the merits of having robust competition for stablecoin issuance and use cases.They also highlight the introduction of the Anti-CBDC Surveillance State Act and the potential for states like Wyoming to issue their own stablecoins. The discussion covers the Securities and Exchange Commission's recent statement on USD-backed stablecoins, clarifying that they do not require Securities Act registration under certain conditions. The group emphasizes the importance of a robust legislative framework to ensure stablecoin proliferation and trust, considering factors like Know Your Customer, Anti-Money Laundering, and global regulatory alignment. The episode concludes with a discussion on the future of stablecoins and the possibility of them being widely used for retail payments, contingent on effective regulation and industry trust. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

In this episode of Crypto Exchange, host Ethan Ostroff is joined by his colleagues Pete Jeydel and Peter Leary to discuss trends and lessons learned from recent civil enforcement actions by the Treasury Department's Office of Foreign Assets Control (OFAC) and from Department of Justice (DOJ) criminal prosecutions related to digital assets.Their discussion covers key compliance lessons for fintech and digital asset companies, including some of the nuances of a robust screening process for companies in this space. They delve into the Binance case, illustrating how noncompliance can escalate from civil to criminal enforcement. The episode also explores the implications of recent policy shifts under the Trump administration, including the creation of a strategic Bitcoin reserve and the designation of cartels as foreign terrorist organizations. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

In this episode of The Crypto Exchange, Ethan Ostroff and Alexandra Barrage are joined by Matt Bornfreund to discuss recent activities by federal banking regulators and federal legislative developments impacting the digital assets industry.They examine the emergence of new banks and innovative business models within the banking sector, highlighting their impact on the digital asset landscape. They also delve into the rescission of SAB 121, which had previously limited banks' ability to maintain custody of crypto assets, and the evolving regulatory stance under the new administration.The discussion also covers the implications of recent stablecoin legislation and the increased openness to blockchain and crypto activities by federal agencies. They emphasize the significant shift in tone and policy, creating a more supportive environment for crypto-related banking activities and potential legislative progress. Additionally, the episode addresses the collaborative efforts between traditional financial institutions and the crypto industry, as well as the role of state and federal regulators in shaping the future of digital assets. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

In this episode of Crypto Exchange, Ethan Ostroff and Alexandra Barrage are joined by partners Joanna Cline and Jay Dubow to discuss the evolving landscape of the SEC's enforcement actions involving cryptocurrencies.The episode highlights the demand for clear regulatory guidelines in the digital asset space, particularly regarding the classification of tokens and cryptocurrencies as securities. The recent establishment of the SEC's cryptocurrency task force and public statements from key figures, including SEC commissioners and the newly nominated SEC chair Paul Atkins, signal a potential shift in regulatory approach.The discussion covers the SEC's historical reliance on enforcement actions, the impact of recent administrative changes, and the anticipated role of the task force in providing a comprehensive regulatory framework.Additionally, the episode explores the broader implications of these developments, including potential legislative recommendations and the interplay between various regulatory bodies. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

In this special joint edition of the Crypto Exchange and the Consumer Finance Podcast, host Ethan Ostroff is joined by colleagues James Kim and Chris Willis to discuss the anticipated regulatory approaches to digital assets by the Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC), and state agencies following the recent change in administration in Washington.The group begins the discussion with the CFPB's actions in the end of 2024 and into 2025, particularly focusing on the digital payments larger participant rule (LPR). The discussion shifts to the FTC's expected role in addressing consumer fraud in the crypto space.The episode concludes by looking ahead to the anticipated, proactive role of state regulators, including the New York Department of Financial Services, in filling the potential void left by the CFPB by enforcing state laws, as well as federal consumer financial laws under Dodd-Frank. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

In this episode of The Crypto Exchange, Ethan Ostroff is joined by colleagues Pete Jeydel and Matt Orso to discuss a recent landmark decision from the Fifth Circuit regarding Tornado Cash. The court ruled that the Office of Foreign Assets Control (OFAC) exceeded its authority by sanctioning immutable smart contracts created by Tornado Cash. This decision has significant implications for the regulation of decentralized finance (DeFi) technologies under the International Emergency Economic Powers Act (IEEPA).The group discusses the Fifth Circuit's analysis, highlighting the court's application of the Loper Bright decision and its refusal to defer to OFAC's broad interpretation of the term "property." They highlight ongoing criminal prosecutions related to Tornado Cash and the potential future impact of this ruling on OFAC's regulatory authority and enforcement practices. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

In this special crossover episode of the Payments Pros and Crypto Exchange podcasts, our hosts are joined by colleague Alexandra Steinberg Barrage to discuss California's Department of Financial Protection and Innovation’s proposed rulemaking under the Digital Financial Assets Law (DFAL).The group discusses various aspects of the new cryptocurrency licensing regime, including licensure exemptions, required disclosures, conditional licensing, and digital asset kiosk requirements. They provide an overview of the DFAL, highlighting its broad licensing and enforcement framework, as well as recent legislative updates extending licensure deadlines. Comparisons are drawn between DFAL and New York's BitLicense, emphasizing the importance of harmonization across state regulations. The conversation also covers the exclusion of digital asset activities from money transmission licensure and the specific requirements for digital asset kiosks. Additionally, the episode touches on the potential impact of federal regulation and the ongoing tension between state and federal oversight in the cryptocurrency space. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

In the latest episode of The Crypto Exchange, host Ethan Ostroff is joined by colleagues Brett Broczkowski and Mike Lowe to discuss the intersection of crime and cryptocurrency, with a focus on the challenges financial institutions face in this space. The conversation highlights the significant rise in crypto-related crimes, with reported losses exceeding $5.6 billion in 2023. The group discusses the vulnerability of older adults to these crimes and the increasing enforcement efforts by federal agencies, including the Securities and Exchange Commission and the U.S. Department of Justice, following President Biden's executive order in 2022. The podcast delves into various types of crypto crimes, such as scams, fraudulent investment websites, and money laundering through crypto mixers.Brett and Mike emphasize the importance of consumer awareness and institutional diligence in combating these issues. They also explore the complexities of tracing crypto transactions and the evolving regulatory landscape, including FinCEN's guidance on reporting suspicious activities. The group concludes the conversation with practical tips for both consumers and financial institutions to protect themselves against crypto-related crimes. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

In the latest episode of The Crypto Exchange, host Ethan Ostroff is joined by Addison Morgan to discuss the recent CFTC enforcement action against Uniswap. The CFTC alleged that Uniswap violated the Commodity Exchange Act (CEA) by facilitating retail commodity transactions on behalf of non-eligible contract participants (i.e., retail consumers) through its decentralized exchange, which enabled consumers to purchase and sell ERC-20 tokens that track the prices of Bitcoin and Ether and offer their holder a potential compounded yield of approximately two times the consumer's initial investment.Ethan and Addison examine the mechanics of these "index tokens," which were designed to mitigate risks associated with traditional margin futures trading. They explore the tokens' leverage characteristics and the CFTC's interpretation of the CEA, including the "actual delivery" exception.Their discussion also addresses the potential impact of this enforcement action on the industry, the likelihood of litigation, and the broader regulatory landscape. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

In the latest episode of The Crypto Exchange, host Ethan Ostroff is joined by Addison Morgan to discuss a groundbreaking initiative by the California Department of Motor Vehicles (DMV) to digitize 42 million car titles using the Avalanche blockchain network. This move allows users to claim, track, and manage digital titles via the DMV's application, reducing transfer times from two weeks to just minutes.The initiative aligns with Governor Newsom's Executive Order N-922, aimed at making California a leader in Web3 and blockchain technology. Driven by the need to combat vehicle registration fraud, the DMV's adoption of blockchain addresses issues like fabricated titles and odometer rollbacks.Addison explains that although electronic lien and title (ELT) programs exist, they lack the functionalities of blockchain, which enables peer-to-peer management of titles and eliminates the DMV as an intermediary. This could streamline the maintenance of vehicle titles and reduce friction in vehicle sales.The episode also covers the technical aspects of the DMV's new initiative, such as the department's creation of a subnet on the Avalanche network and the possibility of introducing third-party validators for decentralization. Ethan and Addison speculate on adoption challenges and discuss potential applications in other sectors, such as real estate. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

In the latest episode of The Crypto Exchange, host Ethan Ostroff is joined by Addison Morgan for an in-depth discussion on the Lummis-Gillibrand Payment Stablecoin Act. This legislation proposes a state and federal regulatory framework for overseeing stablecoins issued by U.S. companies.The conversation explores the potential implications of the bill, including its intent to protect consumers, maintain the U.S. dollar's dominance, and address issues of money laundering and illicit finance.Ethan and Addison also discuss the bill's influence on the digital asset industry, scrutinizing the proposed regulatory structure for reserve-backed stablecoins, the application procedure for stablecoin issuers, and the legislation's emphasis on consumer protection. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

In this episode of The Crypto Exchange, Troutman Pepper Partner Ethan Ostroff welcomes his colleague Trey Smith to discuss the recent Wells notice issued by the Securities and Exchange Commission (SEC) to Uniswap, a major decentralized exchange.Ethan and Trey examine the potential consequences of this notice, which is generally a precursor to an enforcement action. The two underscore the importance of the SEC's shift in regulatory focus towards decentralized finance. They further emphasize the significance of this development for the wider digital asset industry. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

In the final episode of this series, Ethan, Addison, and Trey discuss federal digital asset-related bills and developments from 2023, along with two Office of Foreign Assets Control (OFAC) consent orders involving digital asset exchanges.The group discusses the Economic Report of 2023 issued by the White House, which contained a 35-page chapter dedicated to digital assets and distributed ledger technology. The report underscored the potential benefits and risks of digital assets, leading to a consensus on the need for federal legislation to address regulatory gaps. The conversation then shifts to the bipartisan Responsible Financial Innovation Act (RFIA), which aimed to bolster consumer protection in the digital asset industry and crowned the Commodity Futures Trading Commission (CFTC) as the primary regulator. Ethan, Addison, and Trey also analyze the Financial Innovation and Technology for the 21st Century Act, which, like the RFIA, sought to delineate regulatory authority over the digital asset market between the CFTC and the Securities and Exchange Commission.The episode concludes with a discussion on the OFAC consent orders against Binance and CoinList. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

In the third episode of this four-part series, Ethan, Addison, and Trey discuss several state-level developments that occurred in the digital asset sector during 2023. The group discusses the inception of New York Department of Financial Services' (NYDFS) BitLicense regulation, its evolution, and the NYDFS' introduction of guidance describing the procedures a digital asset custodian must engage in to ensure the provision of safekeeping services in a consumer-friendly manner. The main principles of the guidance aim to protect consumers by requiring digital asset custodians to, among other things, segregate digital assets owned by consumers and to prevent the establishment of debtor-creditor relationships with consumers that utilize custodial services.Ethan, Addison, and Trey also cover California's Digital Financial Assets Law, a licensing regime that grants the California Department of Financial Protection and Innovation (DFPI) supervisory and enforcement powers over entities engaged in digital financial asset business activities. The law permits the DFPI commissioner to issue conditional licenses to applicants with a BitLicense or a Limited Purpose Trust Charter from NYDFS.Lastly, Ethan, Addison, and Trey examine two digital asset regulatory frameworks: one adopted by Louisiana and one proposed by Nevada. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.