The Crypto Kid

As we noted last week, SEC Chairman Gensler has made it even clearer that he’s giving no crypto ground to the CFTC or indeed to anyone who doesn’t agree that the Commission has the statutory authority to govern anything crypto token or intermediary that the Commission believes engages in securities offering, settlement, or transactions.  This follows the “same-risk, same-rules” framework most recently affirmed for bank digital standards in Michael Barr’s maiden speech, but Mr. Gensler takes it to a different level.  Unlike his banking-agency colleagues, he doesn’t have to reach inter-agency consensus to get what he wants unless or until Congress or the courts tell him otherwise.  To be sure, some members of Congress will try just this later in the week.  The Senate Agriculture Committee’s hearing will stand by the CFTC and Senate Banking Republicans will excoriate Mr. Gensler on Thursday for his strong stand on crypto along with much else.  As always, we’ll be watching, analyzing, and reporting, but let us know if you’ve any questions in the interim.