Blockchain Beltway update 1/4/2021
—New order out from CFTC on Polymarket finding it is an unregistered exchange and ordering it to cease and desist. Experts on cryptotwitter say read between the lines, check out language in the order that appears to accept that a truly decentralized platform would have seen a different result.
—Still no update on the status of Kristin Johnson, a Professor at Emory Law (and a friend of mine!) who has been nominated to the CFTC. Her paper on cryptocurrency exchanges shows some skepticism of faux-Defi, consistent with the CFTC’s order. And it “rejects the dominant narrative” in DC right now on crypto regulation. I’ll take any nuance I can get. We will no doubt agree to disagree during her tenure on some important issues, but there’s a nuance to her views that crypto community has been desperate to get from DC regulators. Best wishes on a speedy confirmation.
—At an AEI event on blockchain and regulation today, CryptoDad Chris Giancarlo offers a modification to the Coinbase single regulator idea. He suggests some new entity with joint oversight by SEC and CFTC and offers a defense of self-regulation. Let’s keep working on the bugs in that single regulator idea, I’m with you on self-regulation. Everything old is new, I argued in a paper for a self-regulatory alternative when the SEC was first trying to regulate hedge funds 15 years ago.