The Legal and Regulatory Fallout From Terra's Collapse: Who Will Pay? - Ep. 363

Olta Andoni, deputy general counsel at Ava Labs, and Ari Redbord, head of legal and government affairs at TRM Labs, discuss the Terra stablecoin meltdown, implications for impending international regulations, and the history of stablecoin regulation internationally. Topics covered include: What the most important legal issues are for the Terra meltdown How the Terra implosion will trigger more regulation of the space How regulators seemed to think stablecoins should be regulated even before Terra How their approach differs between dollar-backed stablecoins vs. algorithmic vs. crypto collateral-backed coins How European regulators want stablecoin issuers to be treated like banks What the Lummis-Gillibrand bill would mean for US stablecoin regulation Whether Terra’s demise will mean that regulators won’t tolerate experimentation with algorithmic stablecoins Why regulators will be skittish about stablecoins in response to Terra’s meltdown Why Olta and Ari were impressed by the NY Department of Financial Services guidance on stablecoins What the establishment of SEC jurisdiction over Terraform Labs based on the Mirror investigation from last fall means for any enforcement action by the SEC over Terra Whether Do Kwon and/or Terraform could face criminal charges in multiple jurisdictions Why international regulatory consistency is important in the crypto space Whether civil and class-action lawsuits against Terraform could be expected How Terra 2.0 could open TFL up to further action from regulators and law enforcement Why more education is needed to overcome anxiety about DeFi regulations How hack nondisclosures could be subject to government investigation Thank you to our sponsors! Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021 Beefy Finance: https://beefy.finance/ Episode Links Olta Avalanche https://www.avax.network/ Ava Labs https://www.avalabs.org/ LinkedIn https://www.linkedin.com/in/oltaandoni/ Twitter https://twitter.com/AndoniOlta Ari TRM Labs Website: https://www.trmlabs.com/ TRM Labs Twitter https://twitter.com/trmlabs?s=20&t=m24Ir0OerqPgEejlhL-bdQ TRM Talks https://www.trmlabs.com/category/trm-talks LinkedIn https://www.linkedin.com/in/ari-redbord-4054381b4/ Twitter https://twitter.com/ARedbord?s=20&t=m24Ir0OerqPgEejlhL-bdQ Lummis-Gillibrand Bill Bill Introduction: https://www.gillibrand.senate.gov/news/press/release/-lummis-gillibrand-introduce-landmark-legislation-to-create-regulatory-framework-for-digital-assets Legal Memo from DLx Law: https://dlxlaw.com/wp-content/uploads/2022/06/DLX_FSV-summary_RFIA_060722.pdf Lummis-Gillibrand Section by Section Overview (summary by bill authors): https://www.gillibrand.senate.gov/imo/media/doc/Lummis-Gillibrand%20Section-by-Section%20%5bFinal%5d.pdf Responsible Financial Innovation Act (full text): https://www.gillibrand.senate.gov/imo/media/doc/Lummis-Gillibrand%20Responsible%20Financial%20Innovation%20Act%20%5bFinal%5d.pdf Blog post intro (by Senator Kirsten Gillibrand): https://gillibrandny.medium.com/the-responsible-financial-innovation-act-218a764abd6c FINMA FINMA: https://www.finma.ch/en/ FINMA on Stablecoins: https://www.finma.ch/en/news/2019/09/20190911-mm-stable-coins/ FINMA Publishes Stablecoin Guidance: https://www.sif.admin.ch/sif/en/home/finanzmarktpolitik/digitalisation-financial-sector/stablecoins.html NY DFS Guidance on Stablecoin Issuance: https://www.dfs.ny.gov/industry_guidance/industry_letters/il20220608_issuance_stablecoins Press Release: https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202206081 CNBC Coverage: https://www.cnbc.com/2022/06/08/new-yorks-financial-watchdog-issues-stablecoin-guidance-calls-for-reserve-requirements.html Learn more about your ad choices. Visit megaphone.fm/adchoices