SEC’s Crypto Savvy Surprises Blockchain Insiders at D.C. Forum

As reported by CoinDesk, “It was billed as an opportunity for the Securities and Exchange Commission to learn more about cryptocurrency. But what was striking about Friday’s forum was how much the agency’s staff already knew.

“From questions about atomic swaps to comments about airdrops and forks, the SEC’s FinTech Forum, held at its headquarters in Washington, D.C., demonstrated that the U.S. securities regulator has been paying close attention to the crypto world – and has a deeper understanding than some give it credit for.

“’Clearly they have been listening to what those in the community – and their counsel – have been saying to them and they’ve put a lot of effort into understanding this space,’ said Joshua Ashley Klayman, managing member of Klayman LLC, a boutique law firm.

“’They were very seemingly comfortable with some of the more technical aspects and the terminology, including atomic swaps. It was a much higher-level discussion than the basics of blockchain,’ said Klayman, who was one of the panelists invited to speak at the forum.

“For example, several attendees referenced the moment when Elizabeth Baird, deputy director of the Division of Trading and Markets, brought up atomic swaps. These are cutting-edge transactions in which the parties exchange one cryptocurrency for another without an intermediary, and neither leg of trade is complete until both are.

“Specifically, Baird asked whether such swaps reduce risk in transferring or exchanging cryptos.

“On another panel, Deloitte’s Amy Steele discussed airdrops (mass giveaways of a token to spur adoption) and forks (splinter currencies available to holders of the original) with Jennifer McHugh, senior special counsel to the Division of Investment Management, with a particular focus on whether and how these impact consumer risk.

“Even when pleading ignorance, the SEC officials sounded more informed about crypto than one might expect from Beltway bureaucrats.”

Continue to read the full story at CoinDesk.

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