{"id":74222,"date":"2023-02-16T17:52:04","date_gmt":"2023-02-16T15:52:04","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=74222"},"modified":"2025-09-09T18:48:53","modified_gmt":"2025-09-09T15:48:53","slug":"compound-founder-warns-of-armageddon-for-the-crypto-industry-amid-u-s-regulators-actions","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/compound-founder-warns-of-armageddon-for-the-crypto-industry-amid-u-s-regulators-actions\/","title":{"rendered":"Compound founder warns of &#8216;Armageddon&#8217; for the crypto industry amid U.S. regulators&#8217; actions"},"content":{"rendered":"<p>The latest actions by U.S. regulators against crypto firms are &#8216;a planned liquidation of products&#8217; and could wipe out the growing market. This view was voiced by Compound Labs founder Robert Leshner on a podcast with Frank Chaparro.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"en\">Stablecoins as securities could spell \u2018Armageddon\u2019 for crypto \ud83e\udde8<\/p>\n<p>In this episode, <a href=\"https:\/\/twitter.com\/fintechfrank?ref_src=twsrc%5Etfw\">@fintechfrank<\/a> &amp; <a href=\"https:\/\/twitter.com\/rleshner?ref_src=twsrc%5Etfw\">@rleshner<\/a> cover: <\/p>\n<p>\ud83d\udea8 the multiagency crypto crackdown<br \/>\u2699\ufe0f how \u2018specialization\u2019 improves DeFi governance<br \/>\u2696\ufe0f why Treasury yields &gt; DeFi<\/p>\n<p>Full episode below \ud83d\udc47<a href=\"https:\/\/t.co\/wM9pigNiEL\">https:\/\/t.co\/wM9pigNiEL<\/a><\/p>\n<p>\u2014 The Scoop (@TheScoopPod) <a href=\"https:\/\/twitter.com\/TheScoopPod\/status\/1626164173402181632?ref_src=twsrc%5Etfw\">February 16, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Leshner argues that these measures were not the result of a mistake.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;In many respects they open a new front against the crypto industry. The argument in both cases was that Kraken and Paxos do not comply with investor-protection rules. And there are undisclosed risks. Interestingly, these are fairly weighty arguments,&#8221; he noted.<\/p>\n<\/blockquote>\n<p>According to Leshner, users and experts &#8220;do not really know how Kraken works.&#8221; This same issue affected <a href=\"https:\/\/u1f987.com\/en\/news\/how-the-collapse-of-ftx-and-alameda-research-will-affect-the-crypto-industry\">FTX<\/a> or Celsius, causing &#8220;everything fell like dominoes.&#8221; In this context he called crypto firms &#8220;black boxes&#8221;.<\/p>\n<p>In February <span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> <a href=\"https:\/\/u1f987.com\/en\/news\/sec-warns-paxos-of-enforcement-action-reports-say\">filed claims<\/a> Paxos for involvement in the issuance and listing of the Binance USD stablecoin (BUSD). The agency deemed the asset an unregistered security. Prior to this, the investigation into the issuer of the &#8216;stablecoin&#8217; <a href=\"https:\/\/u1f987.com\/en\/news\/bloomberg-new-york-regulator-opens-investigation-into-paxos\">initiated<\/a> <span data-descr=\"New York State Department of Financial Services\" class=\"old_tooltip\">NYDFS<\/span>.<\/p>\n<p>Kraken settled the SEC&#8217;s allegations regarding its staking program. The company agreed to shut down the service and <a href=\"https:\/\/u1f987.com\/en\/news\/kraken-to-pay-30-million-to-settle-sec-charges\">pay $30 million in penalties<\/a>.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;The argument that USD Coin or Tether are securities can be challenged for months and years. But if something goes wrong in any relationship, I think it&#8217;s an Armageddon scenario for many cryptocurrencies,&#8221; he emphasised.<\/p>\n<\/blockquote>\n<p>He noted that stablecoins account for a large share of on\u2011chain activity, and harsh measures against them threaten the DeFi sector.<\/p>\n<p>In December, investors in Compound <a href=\"https:\/\/u1f987.com\/en\/news\/compound-accused-of-selling-unregistered-securities\">filed suit against the platform<\/a> for selling unregistered securities in the form of the COMP token.<\/p>\n<p>Binance&#8217;s Chief Strategy Officer Patrick Hillman <a href=\"https:\/\/u1f987.com\/en\/news\/binance-says-it-is-prepared-to-pay-fines-to-settle-claims-by-u-s-authorities\">intends to settle the claims with U.S. authorities by paying fines<\/a>. He described the regulators&#8217; latest actions as a threat to the United States&#8217; digital asset industry.<\/p>\n<p><a href=\"https:\/\/u1f987.com\/en\/news\/jake-chervinsky-regulatory-surge-does-not-spell-the-end-of-the-us-crypto-industry\">Jake Chervinsky<\/a> from the Blockchain Association. But the expert is confident that the community in the country will be able to fight back.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The latest actions by U.S. regulators against crypto firms are &#8216;a planned liquidation of products&#8217; and could wipe out the growing market.<\/p>\n","protected":false},"author":1,"featured_media":74223,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1138,36,26],"class_list":["post-74222","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-opinions","tag-regulation","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"32","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/74222","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=74222"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/74222\/revisions"}],"predecessor-version":[{"id":74224,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/74222\/revisions\/74224"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/74223"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=74222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=74222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=74222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}