<p><span>The topic of today’s event is “regulating the new crypto ecosystem.” It is a hot topic of conversation in Washington, DC. The conversation reminds me of a book for toddlers, </span><span>Are You My Mother?</span><span> In that book, a newly hatched bird searches for his mother. He asks a cat, dog, hen, cow, and front-end loader, each of which disappoints the baby bird with the news that it is not the baby bird’s Mom. Rest assured, baby bird and his actual mother are finally reunited. The crypto industry seems to be on a similar journey; only it is not looking for a mother, but is out looking for its regulator. In a bureaucratic twist on the story in the children’s book, in our story, every agency claims to be the regulator. So crypto is looking to Congress to decide who ought to regulate it. A bipartisan bill announced last week attempts to answer that question.</span><a name="_ftnref2" href="https://www.sec.gov/news/speech/peirce-remarks-regulatory-transparency-project-conference?utm_medium=email&utm_source=govdelivery#_ftn2">[2]</a><span> Some people in the crypto industry are celebrating the allocation of certain authorities to the Commodity Futures Trading Commission (“CFTC”) instead of the Securities and Exchange Commission (“SEC”). This view is likely rooted in a disappointment that the SEC has not used more proactively the authorities it already has to sensibly regulate crypto. I understand and share that disappointment, but I am hopeful that we can change course and use our existing and any prospective authorities wisely.</span></p>