WEBVTT 0 00:00:00.100 --> 00:00:02.470 The State of crypto is presented by Tron 1 00:00:02.480 --> 00:00:05.699 connecting the world to the power of Cryptocurrency, 2 00:00:09.489 --> 00:00:13.510 the Consumer Financial Protection Bureau. The CFP B 3 00:00:13.619 --> 00:00:16.549 wants to expand its oversight to cover non-bank 4 00:00:16.559 --> 00:00:19.969 payment providers and some sub sectors of crypto 5 00:00:20.079 --> 00:00:21.059 transactions. 6 00:00:21.430 --> 00:00:24.649 Joining us now to discuss is Coin Desk, global policy and regulation, 7 00:00:24.659 --> 00:00:28.909 managing editor Nick Day, former courtroom sketch artist 8 00:00:29.079 --> 00:00:31.870 and Saman Man Fried's shadow, 9 00:00:31.920 --> 00:00:36.299 who was also the editor of coin desk state of crypto newsletter. 10 00:00:36.549 --> 00:00:38.709 Welcome back from Samland, Nick. 11 00:00:39.930 --> 00:00:41.459 Get you back. How's it going? 12 00:00:41.979 --> 00:00:46.630 Oh, yeah, welcome to Earth. I I, you know, things are great. So tell us 13 00:00:46.819 --> 00:00:47.560 um a 14 00:00:47.970 --> 00:00:50.459 little bit about this proposal, first of all, 15 00:00:50.549 --> 00:00:57.909 how it would be implemented and second of all, what it actually is changing. 16 00:00:59.290 --> 00:01:02.959 Yeah. So this is a proposal from the CFP B yesterday, basically 17 00:01:03.150 --> 00:01:10.360 uh trying to treat non-bank uh payment providers uh app providers, for example, 18 00:01:10.459 --> 00:01:15.910 uh similarly to banks is, you know, kind of how the uh document that describes it. 19 00:01:16.220 --> 00:01:20.629 So basically putting uh making sure that you have the same rules kind of applying to 20 00:01:20.980 --> 00:01:22.160 I you know, 21 00:01:22.339 --> 00:01:23.660 it didn't name them, but a 22 00:01:23.919 --> 00:01:27.239 footnote suggested companies like paypal with Venmo, 23 00:01:27.370 --> 00:01:27.379 uh 24 00:01:27.569 --> 00:01:30.959 block with the Cash app, uh companies like that, 25 00:01:30.970 --> 00:01:33.730 making sure that they're operating under the same kind of, you know, 26 00:01:33.739 --> 00:01:37.370 general oversight rules that you might see large financial institutions and banks 27 00:01:37.589 --> 00:01:38.680 uh operating under. 28 00:01:39.050 --> 00:01:42.879 And, um, you know, as part of that, they were kind of defining, you know, how 29 00:01:43.290 --> 00:01:44.699 they're looking at these. 30 00:01:44.709 --> 00:01:48.639 So, what they're doing is creating this kind of definition of a consumer payment, 31 00:01:49.160 --> 00:01:54.919 uh that would include, you know, payments within households to other people 32 00:01:55.160 --> 00:01:56.059 uh strictly, you know, 33 00:01:56.069 --> 00:01:58.919 not necessarily things that are meant for commercial purposes. 34 00:01:58.930 --> 00:01:59.370 So, 35 00:01:59.589 --> 00:02:01.379 uh you know, I think, for example, 36 00:02:01.629 --> 00:02:06.550 um you know, if I'm buying a pizza and I'm using Venmo to pay someone back for it, 37 00:02:06.900 --> 00:02:09.600 that seems to be the kind of transaction that might be covered 38 00:02:09.758 --> 00:02:10.149 some 39 00:02:10.279 --> 00:02:11.389 terms of transactions therefore, 40 00:02:11.399 --> 00:02:14.740 might get caught up in that under just how they're defining the terms. 41 00:02:15.250 --> 00:02:20.270 So this, who actually would approve this, this sounds like an expansion of power, 42 00:02:20.300 --> 00:02:23.190 of course, that freaks out a lot of people in crypto. 43 00:02:23.440 --> 00:02:27.669 So who would, who would approve this and how would it get implemented? 44 00:02:28.850 --> 00:02:32.070 Well, the CFP B is doing this kind of like a rulemaking. So 45 00:02:32.220 --> 00:02:34.509 uh they propose this, they're seeking feedback, 46 00:02:34.520 --> 00:02:39.320 they're giving people uh either 30 days or until January, whichever is later 47 00:02:39.509 --> 00:02:42.149 to respond to the proposal and say, OK, 48 00:02:42.160 --> 00:02:45.070 we agree or we disagree or we have concerns about XYZ 49 00:02:45.300 --> 00:02:49.509 processes, but it's a rulemaking process similarly, to how, for example, 50 00:02:49.520 --> 00:02:51.929 the Treasury and the IRS are putting out a rule for, 51 00:02:52.210 --> 00:02:56.160 you know, a defining broker for, uh you know, tax purposes or for how, 52 00:02:56.339 --> 00:02:59.679 uh you might see federal regulators implement other rules. 53 00:02:59.830 --> 00:03:03.979 Um So it would be ultimately the CF TB that's going to do this, I imagine though, 54 00:03:04.089 --> 00:03:05.110 you know, of course, 55 00:03:05.119 --> 00:03:09.389 uh CF TB in particular is uh the agency that kind of gets a lot of these challenges. 56 00:03:09.399 --> 00:03:11.429 So I imagine there'll probably be a lawsuit. It 57 00:03:11.750 --> 00:03:15.520 is worth noting, interestingly enough that the Bank Policy Institute uh you know, 58 00:03:16.020 --> 00:03:17.300 a bank friendly entity 59 00:03:17.520 --> 00:03:19.800 uh did come out in favor of this proposal. 60 00:03:19.990 --> 00:03:22.339 Um So it, it does have some support. 61 00:03:22.350 --> 00:03:24.929 You did see opposition from folks like Congressman P 62 00:03:25.190 --> 00:03:26.759 Penry who uh you know, 63 00:03:26.770 --> 00:03:29.070 has also returned to his uh normal job of 64 00:03:29.080 --> 00:03:32.080 running the hospital services committee after a brief stint, 65 00:03:32.089 --> 00:03:32.389 uh 66 00:03:32.889 --> 00:03:34.089 you know, not doing that. 67 00:03:34.350 --> 00:03:37.639 So uh it is, it, it is gonna be one of those rules. 68 00:03:37.649 --> 00:03:39.600 I think that we're gonna see a lot of discussion about. 69 00:03:41.960 --> 00:03:44.570 All right, Nick, we are gonna have to leave it there. 70 00:03:44.580 --> 00:03:47.860 Thanks so much for joining this morning and how refreshing 71 00:03:47.869 --> 00:03:50.979 it is to talk about something that's not Sam B 72 00:03:51.179 --> 00:03:54.210 and freed in court for five weeks straight. So thank you for 73 00:03:54.369 --> 00:03:55.100 bringing us 74 00:03:55.809 --> 00:03:56.380 and just the sketches, 75 00:03:57.860 --> 00:03:58.809 just some pictures. 76 00:04:00.330 --> 00:04:00.699 Sure. 77 00:04:02.949 --> 00:04:05.740 All right. That was Coindesk global policy and regulation. 78 00:04:05.750 --> 00:04:07.539 Managing editor Nick Day. 79 00:04:07.550 --> 00:04:13.000 Don't forget to sign up for the state of crypto newsletter on coindesk dot com.