Matt Stankiewicz on Ripple Decision and Indictment Against Celsius Networks’ CEO

Corruption Crime & Compliance

According to critics, there are a lot of gray areas surrounding compliance and the SEC's position on cryptocurrency regulations. Such uncertainty poses challenges for legitimate crypto projects and creates room for fraudulent activities to thrive. Such is the case for Ripple and Celsius, two recent controversies making waves in the crypto world.

Matt Stankiewicz is a Managing Counsel at The Volkov Law Group. His expertise includes financial regulation and compliance, with a focus on securities, anti-money laundering (AML), and cryptocurrency regulation. Given his professional background and interest in crypto regulations, he is a frequent speaker on legal matters concerning cryptocurrency exchanges and the SEC.

You’ll hear Michael and Matt discuss:

• The SEC faces criticism for its unclear stance on cryptocurrency regulations. Such uncertainty poses challenges for legitimate crypto projects and creates room for fraudulent activities to thrive.
• The Ripple case offers a complex view into how cryptocurrencies are perceived legally. While some sales of XRP tokens were considered securities, others weren't, a distinction that has sent ripples through the crypto world. The case's broader implications, especially with the SEC's decision being appealed, hold immense importance for other companies in similar situations.
• Bad actors can exploit innovative technologies and make things worse for everyone else. With the CEO and CRO of Celsius charged with fraud and numerous questionable practices coming to light, the importance of stringent regulations and monitoring becomes abundantly clear.
• Strong compliance programs serve as bulwarks against fraudsters and those under sanctions, ultimately safeguarding both the platform and its users. However, regulating an asset as novel and dynamic as cryptocurrency is no easy feat. Critics claim the SEC's approach leans more toward enforcement than establishing clear rules.
• Matt underscores the importance of erecting a sturdy compliance structure within the cryptocurrency industry. He emphasizes that such programs are not just regulatory measures but critical tools to ward off fraudsters and maintain the industry's reputation.

KEY QUOTES

“[Crypto] is a brand new asset. It’s virtually impossible to pigeonhole it to any other kind of real-world asset right now.” - Matt Stankiewicz

“Don't cripple the good projects because there’s some bad people out there.” - Matt Stankiewicz

“The SEC just says, well, ‘You should know. You’ve got to figure it out; we're not your attorneys.’ Which is fair in some regard, right? But that said, it's not helpful. The SEC needs to provide some kind of guidance here.” - Matt Stankiewicz

Resources

Matt Stankiewicz on LinkedIn

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