On a recent episode of The Alt Asset Allocation Podcast, firm founder Dave Rodman sat down with host Ben Lakoff to look into the current state of cryptocurrency and it’s potential regulation. Beginning with Dave’s start in crypto 2017 and during the ICO-boom, the two note decentralized finance’s (“DeFi“) potential as last great frontier for tech compared to some of the inefficiencies of traditional financial systems.
Assessing crypto regulation specifically, Dave cautions on the potential “sleeping giant” of sweeping SEC enforcement actions and the overall need for a regulatory sandbox. Noting that many crypto endeavors may instead choose to move offshore rather than wait for U.S. enforcement, there is no simple answer to the best jurisdictions for crypto due to the industry’s layered nature.
The two additionally spend time in noting which regulations have the capability to torpedo crypto innovation in the US – primarily citing the Stablecoin Classification and Regulation Act of 2020. While regulation risk for investors varies from the risk for participants and innovators, Dave identifies the real risk of yet-to-be-seen enforcement actions and the hazards of improper corporate structure through civil lawsuits.
Listen to the full conversation here: