Lee and Jimmie break down an epic week in crypto, starting with last week’s release of a comprehensive crypto market structure bill from Republican chairmen of the House Financial Services and Agriculture committees. They then dissect the SEC’s charges against Binance and Coinbase, and the broader implications these charges will have on crypto in the U.S. Lee’s Twitter: @leereiners Jimmie’s Twitter: @jimmie_lenz Related Links: SEC Files 13 Charges Against Binance Entities and Founder Changpeng Zhao: https://www.sec.gov/news/press-release/2023-101 SEC Charges Coinbase for Operating as an Unregistered Securities Exchange, Broker, and Clearing Agency: https://www.sec.gov/news/press-release/2023-102 McHenry, Thompson, Hill, Johnson Release Digital Asset Market Structure Proposal: https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=408838  

Lee and Jimmie debrief last week’s event in Washington D.C. to discuss their proposal for a fintech regulatory sandbox. Then, they discuss prospects for crypto regulation at the federal level before assessing a recently proposed crypto bill in New York. Next, Lee and Jimmie go across the pond for an update on the EU’s Markets in Crypto Assets (MiCA) regulation. They conclude by discussing the recent settlement between the SEC and a former Coinbase employee on insider trading charges. Lee’s Twitter: @leereiners Jimmie’s Twitter: @jimmie_lenz Related Links: US lags in financial innovation. Regulatory sandboxes are the answer: https://www.americanbanker.com/opinion/us-lags-in-financial-innovation-regulatory-sandboxes-are-the-answer Attorney General James Proposes Nation-Leading Regulations on Cryptocurrency Industry: https://ag.ny.gov/press-release/2023/attorney-general-james-proposes-nation-leading-regulations-cryptocurrency Former Coinbase Manager and His Brother Agree to Settle Insider Trading Charges Relating to Crypto Asset Securities: https://www.sec.gov/news/press-release/2023-98  

Lee and Jimmie toast the end of another academic year at Duke and discuss what’s in store for the 2023 graduates of Duke’s Masters in FinTech Engineering program. They then reflect on the impact of Bitcoin transaction fees surpassing the block mining reward before previewing their May 23rd event in Washington DC that will highlight their regulatory sandbox proposal. They end by discussing the diminishing outlook for stablecoin legislation and the politicization of central bank digital currency. Lee’s Twitter: @leereiners Jimmie’s Twitter: @jimmie_lenz Related Links: US lags in financial innovation. Regulatory sandboxes are the answer: https://www.americanbanker.com/opinion/us-lags-in-financial-innovation-regulatory-sandboxes-are-the-answer House Republicans and Democrats can't agree on how to regulate stablecoins: https://finance.yahoo.com/news/house-republicans-and-democrats-cant-agree-on-how-to-regulate-stablecoins-170039086.html?guccounter=1&guce_referrer=aHR0cHM6Ly90LmNvLw&guce_referrer_sig=AQAAAKjY-iC7dW921Z31Ims-haRpC8tbniJcyQfB0wbC80L1snPM6xFESeeSGPwl5ZC2hApU4W8yYU9Duwi6T2v82rqEN_e67KGWnDzsEEAanTruTuX9YfGvacRn5o0FspTqJmzmTyylaQ6N-otPMKw4NEwnIQSH_eTxPXbM9WI6Y9tf Florida’s DeSantis Waging Toothless Campaign Against Digital Dollars, Lawyers Say: https://www.coindesk.com/policy/2023/05/17/floridas-desantis-waging-toothless-campaign-against-digital-dollars-lawyers-say/?utm_medium=referral&utm_source=rss&utm_campaign=headlines  

Lee and Jimmie discuss their recent op-ed in the American Banker that calls for the creation of a federal regulatory sandbox to promote beneficial innovation in financial services. They then debate the definition of digital asset and why it is so hard to define digital asset and cryptocurrency in law and regulation. Lee gets Jimmie’s thoughts on the role of AI in the classroom and the intersection of AI and crypto. The episode concludes with a preview of next week’s joint hearing on crypto market structure with the House Ag and Financial Services committees.  Lee’s Twitter: @leereiners Jimmie’s Twitter: @jimmie_lenz Related Links US lags in financial innovation. Regulatory sandboxes are the answer: https://www.americanbanker.com/opinion/us-lags-in-financial-innovation-regulatory-sandboxes-are-the-answer U.S. SEC Changes Its Mind on Officially Labeling Digital Assets: https://www.coindesk.com/policy/2023/05/03/us-sec-changes-its-mind-on-officially-labeling-digital-assets/

Jimmie debriefs his recent trip to Louisville to discuss TruckCoinSwap at the Mid America Trucking Show. Lee and Jimmie then discuss the CFTC’s remarkable complaint against Binance and what the potential fallout may be for the broader crypto market. They also highlight a new 160-page report from Citi on blockchain’s future and what the future of tokenization will look like. They end by discussing new accounting guidance from FASB that recommends companies account for crypto on their balance sheet at fair value. Lee’s Twitter: @leereiners Jimmie’s Twitter: @jimmie_lenz Related Links CFTC Charges Binance and Its Founder, Changpeng Zhao, with Willful Evasion of Federal Law and Operating an Illegal Digital Asset Derivatives Exchange: https://www.cftc.gov/PressRoom/PressReleases/8680-23 MONEY, TOKENS, AND GAMES: Blockchain’s Next Billion Users and Trillions in Value: https://ir.citi.com/gps/MG9DEWhoYvQJVWLM9Kr3%2BZmqjoztKJcyNHr83F9Wug2pzAGHPQKfp23RAMrkNts%2FJitXoTNqufOvegUjjXh0IA%3D%3D?utm_source=substack&utm_medium=email FASB Crypto Update: https://www.fasb.org/document/blob?fileName=Prop%20ASU%E2%80%94Intangibles%E2%80%94Goodwill%20and%20Other%E2%80%94Crypto%20Assets%20(Subtopic%20350-60)%E2%80%94Accounting%20for%20and%20Disclosure%20of%20Crypto%20Assets.pdf

Lee and Jimmie discuss the demise of Silicon Valley Bank and Signature Bank and the long-term implications of the policy response on risk-taking in the financial system and what it all means for crypto. They also dissect the digital assets section of the recent Council of Economic Advisors Economic Report of the President (Jimme hates it, Lee loves its). They conclude by talking about recent SEC crypto-related enforcement actions, including the SEC Wells Notice to Coinbase. Lee’s Twitter: @leereiners Jimmie’s Twitter: @jimmie_lenz Related Links Economic Report of the President: https://www.whitehouse.gov/wp-content/uploads/2023/03/ERP-2023.pdf We asked the SEC for reasonable crypto rules for Americans. We got legal threats instead: https://www.coinbase.com/blog/we-asked-the-sec-for-reasonable-crypto-rules-for-americans-we-got-legal

Lee and Jimmie debrief Lee's testimony in front of the House Financial Services Committee's newly formed Digital Assets Subcommittee. They also discuss the demise of Silvergate Bank and the news coming out of ETHDenver. Lee’s Twitter: @leereiners Jimmie’s Twitter: @jimmie_lenz Related Links "Coincidence or Coordinated? The Administration’s Attack on the Digital Asset Ecosystem" before the U.S. House Financial Services Committee Subcommittee on Digital Assets, Financial Technology and Inclusion Hearing Entitled: Coincidence or Coordinated? The Administration’s Attack on the Digital Asset Ecosystem | Financial Services Committee (house.gov)