Marisa Coppel, Senior Counsel at the Blockchain Association, opened up about the challenges faced by the cryptocurrency industry, particularly in dealing with the SEC’s regulatory approach. She expressed concerns about the SEC’s potential attempts to slow down the industry’s progress, attributing it to a combination of factors. In an interview with Thinking Crypto, she touched on the Biden Administration’s seemingly negative stance on crypto and the uncertainty surrounding regulatory developments.
Coppel highlighted her recent testimony in front of the IRS, saying that the questions raised during the session indicated a critical examination of crypto-related issues. She suggested that regulators might not have fully grasped the implications of their proposals, especially concerning non-custodial wallet software developers and DeFi projects. Coppel pointed out the potential adverse impact on innovation if regulations are enacted without consideration.
The conversation delved into the SEC’s Staff Accounting Bulletin (SAB) 121, which provides the SEC’s perspective on crypto-related accounting practices. The Government Accountability Office (GAO) recently reviewed SAB 121, concluding that it qualifies as a rule under the Congressional Review Act (CRA) and the Administrative Procedures Act (APA). Coppel discussed the implications of this opinion, noting its potential influence on future legal challenges.
She also spoke about the Grayscale appeal and the judges’ criticism of the SEC, describing their actions as arbitrary and capricious. Coppel expressed optimism about the shifting dynamics, with the SEC facing increasing scrutiny and legal setbacks. The discussion touched on the ongoing Ripple case and its potential implications for the broader industry.
Talking about Ripple and SEC settlement, she said, “I mean, it’s really hard to tell. I don’t know. It would be surprising if they could agree on a settlement. I think the SEC would have to really fall on their sword, you know, for that.”
Regarding the SEC’s legal battle with Coinbase, Coppel mentioned that the Blockchain Association filed an amicus brief supporting Coinbase in an enforcement action. The case is scheduled for oral argument in January, and Coppel expressed hope that the judge would consider the lack of regulatory clarity in the industry. The conversation concluded with insights into the SEC’s lawsuit against Binance, with Coppel noting that similar arguments to the Coinbase case might apply, although the specific facts differ.
