Regulation 101 | Michele Korver
Source: YouTube · a16z crypto · published Jun 12, 2023 · 36:11
The US government is actively regulating Web3 to prevent illicit finance, requiring entrepreneurs to understand the roles of agencies like the SEC, FinCEN, and OFAC to build compliant businesses 0:23.
Key Takeaways:
• Multiple federal agencies, including the Federal Reserve, DOJ, and Treasury, regulate Web3, impacting banking relationships, custody, and market oversight 0:54.
• FinCEN administers the Bank Secrecy Act, which defines many crypto exchanges as money transmitters requiring KYC/AML programs, registration, and suspicious activity reporting 8:44.
• OFAC enforces sanctions with broad jurisdiction; businesses face strict civil liability for accidentally transacting with sanctioned entities and must screen crypto addresses 16:14.
• Jurisdiction over digital assets is split between the SEC and CFTC, with the SEC asserting many tokens are securities, requiring legal counsel for design and launch 20:37.
• Businesses should engage with regulators proactively through innovation hubs but must also prepare for reactive interactions like Wells notices or subpoenas by maintaining compliance programs 26:52.
Ultimately, prioritizing compliance and legal counsel helps build trust with customers and ensures long-term business sustainability 34:35.
Sources:
Generate CPE Credits
Generate a professional CPE document from this video's transcript.
Estimated credit: 0.5 CPE hours
Estimate uses the video runtime (1 hour ≈ 1 CPE, rounded to the nearest 0.5, minimum 0.5, maximum 2.0). The final amount can be lower after review, never higher.
Topic: Compliance & GRC. Commonly maps to: Security and Risk Management, Asset Security. Exact CISSP domains are assigned during generation.
Free account. One generation at a time, with a daily limit.
CPEBuddy is independent and not affiliated with or endorsed by ISC2, ISACA, or any certification body. Exports are formatted for common CPE submissions; acceptance is at your certification body's discretion.
Transcript Preview
First 800 characters of the transcript
[Music] thank you hello everybody I know the first person you want to talk to in the morning isn't a regulatory attorney right [Laughter] all right so the news of late has been unavoidable the government has been expressing its might in the web 3 space just one example is the ongoing tussle between coinbase and the SEC there are others we'll talk about some of them but regulations are needed to address important and legitimate policy objectives such as preventing illicit Finance ensuring Fair markets and protecting consumers so educating yourself about the regulatory landscape is a necessity for you to be successful entrepreneurs first let me introduce myself I'm Michelle and before I had the Good Fortune of working with web3 Founders at a16z I spent a couple of decades at the federal gove…