In an article for The National Law Journal, partner Ignacio Sandoval and of counsel Sarah Riddell discussed how to mitigate risk while federal and state regulators consider how to govern digital assets.
Months after US Securities and Exchange Commission (SEC) Chair Gary Gensler declared that cryptocurrency was an asset class straight out of the “Wild West,” Ignacio noted, “we’re deep in crypto winter.”
“Winter has come and we’re seeing collapses,” he said.
In the article, Ignacio and Sarah agree that both the SEC and the Commodities Futures Trading Commission (CFTC) have existing frameworks that could be used to protect consumers.
“The CFTC has a framework with bankruptcy protection of customer funds,” Sarah said, which includes a clear segregation of customer assets.