WEBVTT - Biden's Approach to Crypto

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<v Speaker 1>I'm Stacy Marie Ishmael, Managing editor of Crypto for Bloomberg

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<v Speaker 1>mus and this is Bloomberg Crypto at Daily Bloomberg I

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<v Speaker 1>Heart Podcast. It's Monday, August two. It can feel like

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<v Speaker 1>we hear and say the words crypto and regulation mentioned

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<v Speaker 1>in the same sentence a lot these days. That's because

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<v Speaker 1>there are multiple pieces of proposed crypto legislation making their

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<v Speaker 1>way through the US political machine right now. Representative Maxine Waters,

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<v Speaker 1>who's the chair of the powerful House Financial Services Committee,

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<v Speaker 1>and ranking Member Patrick McHenry want to regulate stable coins.

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<v Speaker 1>Senators Cynthia Lamas and Kristin gila Brand have proposed several

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<v Speaker 1>significant changes to the crypto regulation regime in a build

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<v Speaker 1>that they're calling the Responsible Financial in a Asian Act,

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<v Speaker 1>And earlier this year, President Joe Biden himself issued his

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<v Speaker 1>Executive Order on Ensuring Responsible Development as Digital Assets, which

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<v Speaker 1>basically mandated every relevant federal agency to figure out or

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<v Speaker 1>at least define their position on crypto and of course,

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<v Speaker 1>to identify ways to protect consumer rights as well as

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<v Speaker 1>the rights of investors. Joining me today for a discussion

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<v Speaker 1>of these many complicated pieces of potential crypto legislation in

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<v Speaker 1>the US is Nathan Dean, a senior analyst at Bloomberg Intelligence.

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<v Speaker 1>Very few times in my career if I ever heard

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<v Speaker 1>did an industry wants more regulation? But that is something

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<v Speaker 1>that the crypto industry wants. Nathan, Thank you so much

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<v Speaker 1>for joining us today. It seems like there's a lot

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<v Speaker 1>happening in Washington, d C. As it relates to crypto

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<v Speaker 1>and regulations right now. Yeah. Actually, you know, two is

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<v Speaker 1>the year of the crypto industry providing a lot of

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<v Speaker 1>education and a lot of information to policymakers and regulators

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<v Speaker 1>on what they should do in twenty three. It's a

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<v Speaker 1>story of regulatory clarity. If you come from the SEC's perspective, well,

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<v Speaker 1>there's a lot of clarity out there. The tokens out

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<v Speaker 1>there at the moment are considered securities. This is SEC

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<v Speaker 1>Chairman Gary Ginsler. Many of these tokens have the attributes

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<v Speaker 1>of securities. They're raising money from the public, and the

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<v Speaker 1>public is anticipating profits based upon the efforts of others.

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<v Speaker 1>On the other side. From the industry's point of view,

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<v Speaker 1>you will you have a new digital asset class. You know,

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<v Speaker 1>this is something that nine three era securities law does

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<v Speaker 1>not work for and neither side is willing to acquiesce

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<v Speaker 1>to the other. So what happens we're in this stalemate

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<v Speaker 1>and what the industry is doing right now is there

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<v Speaker 1>essentially waiting for one of two things. One for the

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<v Speaker 1>SEC to start cracking down via enforcement actions and the

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<v Speaker 1>SEC has sort of done some of that. Or two

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<v Speaker 1>and this is in the industry's more preferred solution is

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<v Speaker 1>is that they move forward with congressional legislation. You know,

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<v Speaker 1>we've seen a fury uh several key pieces of legislation

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<v Speaker 1>coming out over the last few weeks, whether it's stable coins,

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<v Speaker 1>a comprehensive bill that came from Senators Loomis and jillibrand

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<v Speaker 1>most recently, you know, we have a bipartisan bill that

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<v Speaker 1>comes from the Senate agg Committee. Uh. None of this

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<v Speaker 1>legislation is going to pass this year, but what they

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<v Speaker 1>are doing is they're actually sending the stage for legislation

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<v Speaker 1>to pass in three And it sounds like, you know,

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<v Speaker 1>in three, as you say, we're going to see a

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<v Speaker 1>lot of all of these efforts pay off. So what's

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<v Speaker 1>happening right now? You know, in your role on Bloomberg Intelligence,

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<v Speaker 1>you analyze these things that are coming through one of

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<v Speaker 1>the big things recently was the Biden White House executive

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<v Speaker 1>Order that essentially directed various of the federal agencies to

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<v Speaker 1>figure out their crypto strategy. What have been some of

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<v Speaker 1>the things coming out of that. Do you expect to

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<v Speaker 1>bear fruits in that timeline? Okay? So you know, going

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<v Speaker 1>back to the earlier part of this year in March,

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<v Speaker 1>President Biden put on an executive order. In that executive

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<v Speaker 1>order essentially directed agencies under his directions. So this is

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<v Speaker 1>like Treasury, Homeland Security, and so forth like that to

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<v Speaker 1>go forth and come back with reports uh and recommendations

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<v Speaker 1>and what they should do moving forward. Those reports and

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<v Speaker 1>recommendations should be out between now and let's say the

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<v Speaker 1>end of October. So that's one thing that's been happening. Now.

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<v Speaker 1>The second thing that's been happening is the sec and

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<v Speaker 1>the CFTC and even a little bit to the Consumer

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<v Speaker 1>Financial Protection Bureau in the FED have been doing a

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<v Speaker 1>lot of their own analysis on the crypto industry and

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<v Speaker 1>looking at risks. Now, this is where it differs a

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<v Speaker 1>little bit. You know, the Securities and Exchange Commission, they

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<v Speaker 1>view anything out there, the tokens out there is securities

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<v Speaker 1>for purposes Essentially Bitcoin and to a certain extent, Ether

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<v Speaker 1>are considered commodities. Now that's something that the legislation will address,

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<v Speaker 1>and I'll get there in a second, but for right now,

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<v Speaker 1>the tokens in the SEC's mind, our securities. Now, the

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<v Speaker 1>CFTC doesn't really have much authority over crypto at the

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<v Speaker 1>moment other than you know, bitcoin futures, anything you know

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<v Speaker 1>that's over at the CME or at the Intercontinental Exchange.

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<v Speaker 1>But then you have the Federal Reserve looking at stable coins,

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<v Speaker 1>and so there's all these different pieces of the puzzle

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<v Speaker 1>that's been going on, and the industry just doesn't know

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<v Speaker 1>how to react to it. It's actually very frustrating, I

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<v Speaker 1>think for the industry to be able to prepare, how

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<v Speaker 1>do I actually go forth and grow my company and

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<v Speaker 1>grow as an industry when I don't know what the

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<v Speaker 1>rules are. I don't know if the SEC is gonna

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<v Speaker 1>come down and give me an enforcement action next year. Now,

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<v Speaker 1>what this legislation most likely will do is it will

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<v Speaker 1>actually give regulatory clarity to the crypto industry. And now

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<v Speaker 1>the Senate Agricultural Committee has released a bipartisan bill that

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<v Speaker 1>would essentially this is called the Digital Commodities Consumer Protection

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<v Speaker 1>Act of two. But this bill would actually give CFTC

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<v Speaker 1>the Commodity Futures Training Commission authority over cash markets, good

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<v Speaker 1>spot markets. It would so give them authority over what

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<v Speaker 1>is deemed to be digital commodities. This would be a

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<v Speaker 1>new asset class. Now, the securities would still remain, so

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<v Speaker 1>the debate over whether a token is a security or

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<v Speaker 1>a commodity that would still remain. But what the industry

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<v Speaker 1>is most looking for and what the industry is most

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<v Speaker 1>likely going to get, and this is coin based FTX binance.

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<v Speaker 1>Whoever registers as a crypto exchange, is you know, regulatory

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<v Speaker 1>certainty in terms of avoiding enforcement actions. I want to

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<v Speaker 1>ask you something there before we get into the enforcement actions,

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<v Speaker 1>which is is there in your observation you know kind

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<v Speaker 1>of what you're hearing. Is there a preference for who

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<v Speaker 1>people want to be regulated by? And is that related

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<v Speaker 1>to the potential severity of those enforcements actions? Absolutely, very

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<v Speaker 1>few times in my career have I ever heard then

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<v Speaker 1>an industry wants more regulation. But that is something that

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<v Speaker 1>the crypto industry wants, uh and they want to be

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<v Speaker 1>regulated by the Commodity Futures Training Commission the reason being

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<v Speaker 1>is the CFTC has what is known as prince sipples

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<v Speaker 1>based regulation over at the SEC. It's prescriptive base. So

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<v Speaker 1>if I'm at the Commodity Futureist Training Commission and I'm

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<v Speaker 1>f t X or coin base, I can create my

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<v Speaker 1>own rule book, I can create my own rules, I

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<v Speaker 1>can create my own governance procedures, and as long as

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<v Speaker 1>they meet the principle of the regulation, the CFTC says,

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<v Speaker 1>you're good. If you're over on the SEC side, well

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<v Speaker 1>then it gets a little bit more in depth than

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<v Speaker 1>in granulear and in the weeds, and each group would

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<v Speaker 1>have to create their own system and have to make

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<v Speaker 1>sure that all the eyes are dotted and all the

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<v Speaker 1>tas are cross and so forth. So, you know, the

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<v Speaker 1>the industry certainly wants to go to the CFTC, and

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<v Speaker 1>that education and that information that they've been providing to

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<v Speaker 1>lawmakers in two is paying off, because you're seeing this

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<v Speaker 1>both from Democrats and Republicans in the sense that they

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<v Speaker 1>to the Democrats and Republicans are also starting to lean

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<v Speaker 1>towards having the CFTC be the main crypto regulative. Correct

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<v Speaker 1>crypto is funny because it's not really a bipartisan issue.

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<v Speaker 1>It's more of a generational issue. And what that means

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<v Speaker 1>is that you have Democrats who are very much okay

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<v Speaker 1>with the idea of the crypto industry going to the CFTC,

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<v Speaker 1>you have Republicans are okay with it, and then you

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<v Speaker 1>have Democrats and Republicans who are against that. Now, the

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<v Speaker 1>big issue for you know, let's just say, giving the

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<v Speaker 1>CFTC oversight over the crypto industry is that, you know,

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<v Speaker 1>it allows the crypto firms to essentially go to a

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<v Speaker 1>new regulatory framework and avoid threats of enforcement actions because

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<v Speaker 1>SEC Chairman Gary Gensler has said consistently that you know,

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<v Speaker 1>current regulation applies. You know, we don't need new rules,

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<v Speaker 1>we don't need new legislation. All firms need to do

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<v Speaker 1>is come in register, to come in and talk to us.

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<v Speaker 1>Coming to register, You're going to do what we can.

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<v Speaker 1>But right now there's far too many of these platforms

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<v Speaker 1>that haven't come in uh to basically comply with the

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<v Speaker 1>law and register. He says this almost every interview. He said,

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<v Speaker 1>as but nobody has really done that. And the reason

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<v Speaker 1>being is, and I have a I have a Star

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<v Speaker 1>Wars joke here, is that it's like you know, the

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<v Speaker 1>Return of the Jedi. It's this Admiral Lackbar that with

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<v Speaker 1>Creature who leads the rebelry. Yeah, he streams it's a trap. Well,

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<v Speaker 1>if you go talk to the SEC, it could be

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<v Speaker 1>a trap because the SEC would then take a look

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<v Speaker 1>and say, Okay, this is great, thank you very much

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<v Speaker 1>for coming in and talk to ing to us. But

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<v Speaker 1>for the last two years you've been operating outside of

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<v Speaker 1>securities law and therefore you need to you know, pay

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<v Speaker 1>for that. So if this legislation passes next year, not

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<v Speaker 1>only does the industry get clarity, but they almost get

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<v Speaker 1>like I don't want to call it get out of

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<v Speaker 1>jail free card, but they get you know, they get

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<v Speaker 1>away from that threat of the SEC enforcement, which is

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<v Speaker 1>of course what the industry would have everyone believe right

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<v Speaker 1>that the main thing here is clarity as opposed to

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<v Speaker 1>being subject to what they perceive as more onerous rules

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<v Speaker 1>and regulations. Yeah. I mean, if you look at the

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<v Speaker 1>nineteen thirty three Securities Act, I mean it's only about

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<v Speaker 1>forty pages. I mean it's it's very light and so uh,

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<v Speaker 1>it's very broad, and you know, the SEC has taken

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<v Speaker 1>the approach that these firms just need to come in

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<v Speaker 1>and register. And if you go in and register, then

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<v Speaker 1>and start from the beginning. Let's just say there is

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<v Speaker 1>a new company and you want to follow the SEC

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<v Speaker 1>standard and you're going to register. Well, then you go

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<v Speaker 1>in and you produce all this different types of governance

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<v Speaker 1>and these rule books and these you know, the technology

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<v Speaker 1>requirements and clients and examinations so forth. And it costs

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<v Speaker 1>a lot of money. Now you do that at the

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<v Speaker 1>same time that others in the industry aren't registering with

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<v Speaker 1>the SEC, and so now you're spending a lot more

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<v Speaker 1>money when I the retail customer doesn't don't really care

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<v Speaker 1>about things like governance and you know, you know, like

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<v Speaker 1>the behind the scenes operational aspects if you will. So

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<v Speaker 1>you know, the industry really hasn't made any decision, or

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<v Speaker 1>the industry has really taking the point of, you know,

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<v Speaker 1>let's not register until we have to, and instead, let's

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<v Speaker 1>lobby Congress to try and give us a regulatory framework

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<v Speaker 1>that we can work with, and ultimately I think that's

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<v Speaker 1>gonna pay off. Now, the SEC has not done yet though,

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<v Speaker 1>because like I said before, you know, I do anticipate

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<v Speaker 1>legislation moving next year. But what type of legislation, because

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<v Speaker 1>there was a bill that came out earlier this year

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<v Speaker 1>from Senators Loomis and Jill Brand and this was the

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<v Speaker 1>first comprehensive bill. And the question here is stable coins,

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<v Speaker 1>because if you look at the lobbying that has been

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<v Speaker 1>done to Congress this year, stable coins has become a

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<v Speaker 1>bigger issue than just the crypto industry, a bit large.

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<v Speaker 1>Seeing a stable coin fail is something that goes into

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<v Speaker 1>the news cycle, and that's something a politician can understand.

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<v Speaker 1>It's a little bit easier for them than understanding what,

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<v Speaker 1>you know, registration requirements for the Commodity Futures Training Commission

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<v Speaker 1>can be. And so you know certain folks on on

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<v Speaker 1>up on Capitol Hill taking the approach of well, let's

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<v Speaker 1>do stable coins first and then let's do the rest later.

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<v Speaker 1>And in fact, the House Financial Services Committee, this is

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<v Speaker 1>UH chair Chairwoman Maxine Waters and Rank member mckenry from

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<v Speaker 1>North Carolina, they're going to have a stable coin bill

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<v Speaker 1>that comes out in September, so you know there's gonna

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<v Speaker 1>be momentum to try and get stable coin legislation done

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<v Speaker 1>before the crypto exchange registration issue. And now the question is, well,

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<v Speaker 1>what do we do and when do we do stable coins,

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<v Speaker 1>do we do commodity in futures? Do we do spot markets?

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<v Speaker 1>And that eats up a lot of political capital. But

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<v Speaker 1>the order is, the question is do they move on

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<v Speaker 1>stable coins first? You know, the House Financial Service Committee

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<v Speaker 1>versus the Senate Agricultural Committee. I mean, who has the

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<v Speaker 1>ability to move their legislation first? You know, do they

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<v Speaker 1>move them at the same time, do they move the differently?

0:12:38.679 --> 0:12:41.240
<v Speaker 1>So that's where it's just gonna get a little bit messy.

0:12:41.280 --> 0:12:45.400
<v Speaker 1>But ultimately, with this legislation passing, probably with by a

0:12:45.480 --> 0:12:48.720
<v Speaker 1>year from now. Up next, more of my conversation with

0:12:48.840 --> 0:12:52.160
<v Speaker 1>Nathan Dean of Bloomberg Intelligence will discuss more of the

0:12:52.200 --> 0:12:56.560
<v Speaker 1>regulatory conundrum facing federal agencies trying to balance the interests

0:12:56.559 --> 0:13:08.520
<v Speaker 1>of consumers, investors, and digital asset companies. I want to

0:13:08.520 --> 0:13:10.959
<v Speaker 1>go back to the conversation about stable coins because, as

0:13:10.960 --> 0:13:14.040
<v Speaker 1>you said, there's lots of reasons why it's getting so

0:13:14.120 --> 0:13:17.000
<v Speaker 1>much attention, but there's one I want us to call out,

0:13:17.120 --> 0:13:19.680
<v Speaker 1>which is, you know, various regulators around the world have

0:13:19.760 --> 0:13:23.160
<v Speaker 1>identified two things about stable coins that stressed amount. One

0:13:23.679 --> 0:13:26.600
<v Speaker 1>the possibility of like the global transmission of risk. Right,

0:13:26.600 --> 0:13:29.960
<v Speaker 1>because you have people in lots of different countries using

0:13:30.400 --> 0:13:34.520
<v Speaker 1>these very liquid, supposedly stable assets, and you know, as

0:13:34.520 --> 0:13:36.960
<v Speaker 1>you mentioned, like consumers can get burned by these and

0:13:37.000 --> 0:13:39.120
<v Speaker 1>when they collapse, it's a news cycle, and that is

0:13:39.160 --> 0:13:42.800
<v Speaker 1>always like politically fraught. But the second thing is some

0:13:42.880 --> 0:13:48.800
<v Speaker 1>governments perceive them as competitive to their own sovereign currencies.

0:13:49.360 --> 0:13:52.240
<v Speaker 1>And I'm wondering if there's anything about the current focus

0:13:52.280 --> 0:13:54.720
<v Speaker 1>on stable coins or any other elements that you're getting

0:13:54.800 --> 0:13:57.560
<v Speaker 1>from this proposed regulation that has a sense of like

0:13:57.600 --> 0:14:01.600
<v Speaker 1>a national security consideration. That's a great question, and in

0:14:01.679 --> 0:14:03.560
<v Speaker 1>fact there's two aspects of the way that I would

0:14:03.600 --> 0:14:06.960
<v Speaker 1>answer that. Um. The first is, specifically when it comes

0:14:07.000 --> 0:14:09.840
<v Speaker 1>to stable coins, the legislation that's coming out from the

0:14:09.840 --> 0:14:12.959
<v Speaker 1>House Financial Services Committee is more essentially just going to

0:14:13.080 --> 0:14:16.240
<v Speaker 1>require both banks and non banks who issue stable coins

0:14:16.679 --> 0:14:19.840
<v Speaker 1>to be backed up by high quality liquid assets. It

0:14:19.960 --> 0:14:23.360
<v Speaker 1>really doesn't get into the national security argument all that much,

0:14:23.360 --> 0:14:25.840
<v Speaker 1>so view that more of as a tactical bill, and

0:14:25.960 --> 0:14:28.280
<v Speaker 1>that's the one that we anticipate that's going to come

0:14:28.320 --> 0:14:32.760
<v Speaker 1>out next year. The more strategic national risk aspect, though,

0:14:32.920 --> 0:14:35.160
<v Speaker 1>comes from the Federal Reserve in this creation of a

0:14:35.160 --> 0:14:38.760
<v Speaker 1>central bank digital currency now you know the one. I

0:14:38.800 --> 0:14:40.880
<v Speaker 1>don't think it was really well reported at the time.

0:14:40.880 --> 0:14:43.840
<v Speaker 1>But when President Biden put out the Executive Order in March,

0:14:44.520 --> 0:14:47.640
<v Speaker 1>there was a directive in that executive Order to direct

0:14:47.760 --> 0:14:50.240
<v Speaker 1>the Department of Treasury to come back with a report

0:14:50.280 --> 0:14:53.280
<v Speaker 1>on whether or not a central bank digital currency is

0:14:53.320 --> 0:14:57.440
<v Speaker 1>advisable and if so, it directed the Attorney General to

0:14:57.520 --> 0:15:01.880
<v Speaker 1>create legislative language do in that. Congress will ignore it.

0:15:02.040 --> 0:15:05.120
<v Speaker 1>But that's much further step than I anticipated that the

0:15:05.120 --> 0:15:07.720
<v Speaker 1>Biden administration would take. Now, if you go to the

0:15:07.760 --> 0:15:10.480
<v Speaker 1>FED and you asked Jerome Powell, you you ask Governor

0:15:10.520 --> 0:15:13.840
<v Speaker 1>Brainerd on whether or not the federal create a central

0:15:13.840 --> 0:15:17.320
<v Speaker 1>bank digital currency. Chairman Powell has said that he would

0:15:17.320 --> 0:15:20.360
<v Speaker 1>only do so if he was directed by Congress or

0:15:20.400 --> 0:15:24.320
<v Speaker 1>the Executive branch. Now, Congress really tried to hammer him

0:15:24.320 --> 0:15:25.720
<v Speaker 1>down and whether or not he would do it without

0:15:25.720 --> 0:15:29.200
<v Speaker 1>a Congressional action. But Governor Brainard has been open to

0:15:29.240 --> 0:15:31.800
<v Speaker 1>the idea of a central bank digital currency, with the

0:15:31.840 --> 0:15:34.560
<v Speaker 1>caveat that it would take up to five years. And

0:15:34.600 --> 0:15:36.880
<v Speaker 1>the reason why I think the vet will will eventually

0:15:36.920 --> 0:15:39.760
<v Speaker 1>approve a central bank digital currency is just because of

0:15:39.800 --> 0:15:42.800
<v Speaker 1>the argument that if the United States doesn't, others will.

0:15:43.480 --> 0:15:46.720
<v Speaker 1>The United States needs to do one before other countries

0:15:46.920 --> 0:15:49.440
<v Speaker 1>end up getting the amount of liquidity that goes to

0:15:49.480 --> 0:15:52.920
<v Speaker 1>the point where the US is harmed by bat Generally,

0:15:53.000 --> 0:15:55.560
<v Speaker 1>when the crypto industry comes to Washington, they say, well,

0:15:55.600 --> 0:15:57.720
<v Speaker 1>if you don't do this, we're going to fall behind.

0:15:58.280 --> 0:16:00.360
<v Speaker 1>The argument that the United States needs to create a

0:16:00.440 --> 0:16:04.440
<v Speaker 1>central being digital currency before others create liquidity to the

0:16:04.480 --> 0:16:07.480
<v Speaker 1>point where it begins to harm US interests. That is

0:16:07.520 --> 0:16:10.400
<v Speaker 1>actually working a little bit over the fed with the

0:16:10.520 --> 0:16:13.760
<v Speaker 1>caveat that this could take. And just on that notes

0:16:13.800 --> 0:16:15.960
<v Speaker 1>about you know, things that you think folks might not

0:16:16.000 --> 0:16:18.520
<v Speaker 1>be fully paying attention to, things that have been under reported.

0:16:18.640 --> 0:16:22.200
<v Speaker 1>Is there any other element of either this regulation or

0:16:22.240 --> 0:16:24.520
<v Speaker 1>the kind of you know, the conversations and discussions that

0:16:24.560 --> 0:16:26.600
<v Speaker 1>you might be having or a privy to that you

0:16:26.640 --> 0:16:29.360
<v Speaker 1>think people really need to be paying much more attention

0:16:29.400 --> 0:16:32.640
<v Speaker 1>to than they potentially are right now. So I wouldn't

0:16:32.720 --> 0:16:36.760
<v Speaker 1>underestimate SEC Chairman Gary Gensler. Um. You know, we've said

0:16:36.760 --> 0:16:38.960
<v Speaker 1>that this legislation we think will pass next year, or

0:16:39.000 --> 0:16:41.920
<v Speaker 1>some form of this legislation will pass next year. But

0:16:42.160 --> 0:16:44.560
<v Speaker 1>you know the SEC chairman is taking in the approach

0:16:44.600 --> 0:16:49.000
<v Speaker 1>that these tokens out there securities and as a result,

0:16:49.040 --> 0:16:52.240
<v Speaker 1>the crypto exchanges that are offering these securities aren't following

0:16:52.280 --> 0:16:55.760
<v Speaker 1>securities law, and therefore we are just waiting for enforcement

0:16:55.800 --> 0:16:59.920
<v Speaker 1>actions to occur. You know. In fact, we've even seen

0:17:00.120 --> 0:17:02.200
<v Speaker 1>statements from him over the last few weeks that just

0:17:02.240 --> 0:17:04.639
<v Speaker 1>go as far as to say that maybe the sec

0:17:04.760 --> 0:17:07.199
<v Speaker 1>should get into the business of writing a rulemaking on

0:17:07.240 --> 0:17:10.960
<v Speaker 1>how crypto exchanges can operate. So you know, that's the

0:17:11.119 --> 0:17:15.000
<v Speaker 1>question of Okay, this legislation will pass, but you know,

0:17:15.040 --> 0:17:18.280
<v Speaker 1>there are several Democrats and Republicans out there who are

0:17:18.400 --> 0:17:21.639
<v Speaker 1>not comfortable with this, and ultimately President Biden has to

0:17:21.640 --> 0:17:24.680
<v Speaker 1>sign it. And you know, I don't think anybody really

0:17:24.680 --> 0:17:27.320
<v Speaker 1>knows what President Biden's view on cryptocurrency is. But there

0:17:27.320 --> 0:17:30.160
<v Speaker 1>are going to be several catalyst of moments between now

0:17:30.200 --> 0:17:32.920
<v Speaker 1>and say August of next year that are going to

0:17:33.000 --> 0:17:35.520
<v Speaker 1>make things a little bit more challenging from the crypto industry.

0:17:35.600 --> 0:17:37.880
<v Speaker 1>But ultimately, we think, if you were to say three

0:17:37.960 --> 0:17:40.359
<v Speaker 1>or five years from now, are you do you have

0:17:40.440 --> 0:17:44.720
<v Speaker 1>this regulatory clarity? You do? And most of the times

0:17:44.760 --> 0:17:46.920
<v Speaker 1>when we've seen a new regulation and I'm not talking

0:17:46.920 --> 0:17:49.280
<v Speaker 1>about crypto here, but just whenever you see a new

0:17:49.320 --> 0:17:53.679
<v Speaker 1>form of financial regulation come in that disrupts markets, it

0:17:53.800 --> 0:17:58.320
<v Speaker 1>ultimately benefits the bigger players that have compliance teams and

0:17:58.400 --> 0:18:00.960
<v Speaker 1>monilarity teams and so forth, to the detriment of the

0:18:00.960 --> 0:18:04.040
<v Speaker 1>moment pops out there. Nathan, thank you so much. That

0:18:04.080 --> 0:18:08.440
<v Speaker 1>has been such a helpful and I think insightful overview

0:18:08.600 --> 0:18:10.840
<v Speaker 1>of what folks can or should be expecting as it

0:18:10.880 --> 0:18:13.359
<v Speaker 1>relates to us crypto regulation. Really appreciate you taking the

0:18:13.400 --> 0:18:15.760
<v Speaker 1>time to come in the podcast today. No, thank you

0:18:15.840 --> 0:18:17.560
<v Speaker 1>very much for having me. It was an absolute joy.

0:18:17.920 --> 0:18:20.040
<v Speaker 1>You can find more of Nathan Dean's analysis on the

0:18:20.040 --> 0:18:24.000
<v Speaker 1>Bloomberg Terminal or follow him on Twitter at Nathan Dean

0:18:24.440 --> 0:18:32.800
<v Speaker 1>d C. On the next Bloomberg Crypto. London is one

0:18:32.800 --> 0:18:36.040
<v Speaker 1>of the world's top destination for banks and financial services firms,

0:18:36.359 --> 0:18:39.400
<v Speaker 1>but it's had a harder time attracting and keeping crypto

0:18:39.480 --> 0:18:44.960
<v Speaker 1>companies because of regulatory uncertainty around the status of digital assets. Tomorrow,

0:18:45.359 --> 0:18:47.920
<v Speaker 1>my colleague Emily Nicole will tackle how the Law Commission

0:18:47.920 --> 0:18:51.119
<v Speaker 1>of England and Whales is working to rebuild that reputation

0:18:51.280 --> 0:18:59.280
<v Speaker 1>for regulatory innovation. This is Bloomberg Crypto a daily podcast

0:18:59.320 --> 0:19:02.439
<v Speaker 1>from Bloomberg and I Heart Radio. For more shows from

0:19:02.480 --> 0:19:05.879
<v Speaker 1>I Heart Radio, visit the I Heart Radio app, Apple Podcasts,

0:19:06.040 --> 0:19:10.000
<v Speaker 1>or wherever you get your podcasts. Send us your comments, questions,

0:19:10.040 --> 0:19:13.120
<v Speaker 1>or suggestions for the show to Crypto at Bloomberg dot net,

0:19:13.680 --> 0:19:18.639
<v Speaker 1>or find us lunch with We're at Crypto. The supervising

0:19:18.640 --> 0:19:21.960
<v Speaker 1>producer of Bloomberg Crypto is Vicky ver Galina. Our senior

0:19:21.960 --> 0:19:26.639
<v Speaker 1>producer is Janet Babin. Our producer is Sharon Barriro. Associate

0:19:26.640 --> 0:19:30.320
<v Speaker 1>producer is Ty Butler. Desta wonder At is our engineer.

0:19:30.840 --> 0:19:35.560
<v Speaker 1>Original music by Leo Sidrin. I'm Stacy Marie SMaL. We'll

0:19:35.560 --> 0:19:36.280
<v Speaker 1>be back tomorrow