In a recent Thinking Crypto podcast episode, host Tony Edward interviews Cody Carbone, president of the Digital Chamber, addressing the SEC and its stance towards the cryptocurrency industry under Gary Gensler’s leadership. Carbone argues that NFTs are not securities but rather digital collectibles, asserting that Gensler’s aggressive enforcement tactics are stifling innovation. He believes Gensler aims to "chill innovation" due to his perceived failures in regulatory actions and court losses, using "wells notices" to threaten enforcement without significant taxpayer expense.
Carbone expresses frustration with the current administration, particularly the silence from Biden and Kamala Harris regarding the SEC’s overreach. Despite ongoing discussions in Congress, he feels that meaningful regulatory changes are unlikely before the upcoming elections. However, he maintains a cautious optimism, noting that fundraising efforts from the crypto sector are forcing politicians to take stances on the industry. As legislative priorities shift towards government funding, the likelihood of passing crypto-related bills diminishes. Ultimately, Carbone remains hopeful for progress post-2025, particularly if the political landscape changes. The discussion emphasizes the tension between regulatory action and innovation in the evolving crypto market.
