Why regulation may come for crypto

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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.