Interview About Stablecoin Regulation and Why Wall Street Is Pushing Into Crypto

The post interview about stablecoin regulation and why Wall Street is pressing into crypto appeared on BitcoinEthereumNews.com. Veronica McGregor, CLO at Exodus and former CLO at ShapeShift, has spent 20 years on the legal frontlines of crypto so with Cryptonomist we chose to interview her to talk about how stablecoin regulation could restrict how users hold and move their own crypto, the behind-the-scenes modifications public crypto companies are making to get ready for more TradFi-style rules and why Wall Street’s push into crypto custody might produce legal disputes with decentralized wallet designs. You have actually cautioned that stablecoin policy could restrict how users hold and move their crypto. Can you describe how these policies could directly affect non-custodial wallet users? Stablecoin policies that are too overbroad and target the transmission of value rather than simply issuance, danger pulling non-custodial wallet users into a compliance structure that was never ever designed for them. For instance, classifying wallet companies as ‘money transmitters’ or ‘banks’ would open the floodgates to effectively limiting self-custody. We have actually worked to ensure this is not the case with both the GENIUS Act and STABLE Act. It continues to be an ongoing priority with market structure also. Some propositions suggest needing KYC on stablecoin transfers– even peer-to-peer. Do you see this as possible from a legal viewpoint, and what precedent might it set for broader crypto usage? Requiring KYC on peer-to-peer stablecoin transfers isn’t just infeasible, it would redefine what it indicates to ‘hold’ your own assets. Legally, we don’t ask somebody to check ID before handing a buddy $20. Pressing that concern onto people sets a harmful (and impractical) precedent where individuals utilizing their own digital properties are regulated as banks. Having dealt with both Exodus and ShapeShift, how have you seen compliance strategies progress as public analysis of crypto firms has intensified? At both Exodus and ShapeShift, I have actually seen firsthand how compliance …

Veronica McGregor, CLO at Exodus and previous CLO at ShapeShift, has invested two decades on the legal frontlines of crypto so with Cryptonomist we decided to interview her to talk about how stablecoin policy could limit how users hold and move their own crypto, the behind-the-scenes changes public crypto companies are making to prepare for more TradFi-style rules and why Wall Street’s push into crypto custody may produce legal conflicts with decentralized wallet designs. Do you see this as practical from a legal standpoint, and what precedent might it set for more comprehensive crypto usage? From board-level governance to financial audits and proactive disclosure practices, public crypto companies are preparing for a world where crypto may be managed more like standard financing, even if we don’t fully agree with that direction.

Veronica McGregor, CLO at Exodus and previous CLO at ShapeShift, has actually spent two decades on the legal frontlines of crypto so with Cryptonomist we decided to interview her to talk about how stablecoin policy might limit how users hold and move their own crypto, the behind-the-scenes changes public crypto firms are making to prepare for more TradFi-style guidelines and why Wall Street’s push into crypto custody may produce legal conflicts with decentralized wallet designs. Do you see this as feasible from a legal viewpoint, and what precedent might it set for more comprehensive crypto usage? Are there internal shifts happening at public crypto business– like governance, audits, or disclosures– that the public does not see, however that are driven by looming TradFi-style rules? From board-level governance to monetary audits and proactive disclosure practices, public crypto companies are preparing for a world where crypto might be regulated more like standard financing, even if we do not totally concur with that direction. As TradFi enters crypto custody, the legal divide between self-custodial and custodial designs– the latter referring to individual self-custody– is going to sharpen.