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Stephen Palley: The Regulatory Landscape for Cryptocurrencies and the SEC's Case Against Kik

Episode Summary

Lawyer Stephen Palley joined us to discuss the SEC case against Kik, the evolving US regulatory landscape for cryptocurrencies and the recent announcement of the Libra cryptocurrency.

Episode Notes

The complex and evolving regulatory landscape for cryptocurrencies has been a topic for many years. After a long period of waiting, the SEC started pursuing fraud causes in the last 1-2 years. But the recent lawsuit against Kik is the first time that the SEC goes after a large, non-fraud case.

We were joined by lawyer Stephen Palley to discuss the Kik case, the US regulatory landscape and recent announcement of the Libra cryptocurrency promoted by Facebook.

Topics covered in this episode:

• The SEC lawsuit against Kik
• The potential path of the process and how it could resolve in the end
• Why the Kik case is unlikely to provide any regulatory clarity in the next few years
• What a settlement in the Kik case could look like
• Whether the Howey test is still a sensible way to regulate securities
• How US regulators will deal with decentralized exchanges
• Stephen's thoughts on Libra

Episode links:

• Annotated Guide to the SEC's Complaint against KIK - Katherine Wu
• Kik and the SEC: What’s Going On and What Does It Mean for Crypto? -
  Katie Haun
• Kin Sets Up $5 Million DefendCrypto.org to Take on the SEC - Unchained
  Podcast
• SEC vs. Kik: The Lawyers Speak - CoinDesk
• Episode 135 with Stephen Palley: Lawmodynamics – How to Sue a DAO
• Stephen Palley on Twitter

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This episode is hosted by Brian Fabian Crain & Friederike Ernst. Show notes and listening options: epicenter.tv/293