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Chana Schoenberger (00:11):
Hi, I'm Chana Schoenberger. I'm the editor-in-chief of American Banker, and I'm here today with Kristin Smith, who is the president of the Solana Policy Institute. Thanks for coming in.
Kristin Smith (00:21):
Thanks for having me.
Chana Schoenberger (00:22):
So what is your view on the chances for crypto market structure legislation this year in the next Congress at any point?
Kristin Smith (00:31):
Well, unfortunately, I think we have missed the window to get the Clarity Act done. We have seen the vote fail to get the critical number of votes needed on the Senate floor. And I think the White House, Congress, and those of us in the industry are now really looking towards a regulatory pathway as an alternative. Of course, there is a small chance it could come back maybe in the lame duck session, but I think at this point there's a real focus on using existing laws on the books to fill as many gaps as possible. So definitely a plan B, we're calling it, or I guess it's plan C for a lowercase C for clarity because we don't have the big Clarity Act anymore. But I do think that this is a technology that's being integrated with banks. 67 million Americans hold and use crypto. It's a space that does need regulations.
(01:28):
And so we're excited the regulators are stepping up and they're going to take their shot.
Chana Schoenberger (01:33):
So what does the regulatory world look like at this point?
Kristin Smith (01:36):
Well, there are a lot of obligations today on a lot of the intermediaries within the crypto space, a lot of Bank Secrecy Act regulations. We of course have the Genius Act and there are many rulemakings that are putting the details on how to deal with payment stablecoin issuers and those who are interacting with payment stablecoins. And so that framework is in place. And I think the pieces that we're looking to in the future are what can the SEC and the CFTC do to help regulate parts of that ecosystem, particularly when it comes to the tokenization of securities and derivatives. And so I do think there's a lot that can do within the authority they have. And so it's a little bit of a piecemeal approach, but one that I think will cover most of the critical needed public policy goals.
Chana Schoenberger (02:28):
So that's actually going to happen.
Kristin Smith (02:29):
That's happening. We've had very, very bullish statements out of both the SEC and the CFTC that they are ready to go and to stay tuned.