Harvard's Massad on Cryptocurrency Regulation

The video discusses the regulatory challenges facing the cryptocurrency industry, particularly focusing on Coinbase. Despite its public offering, Coinbase operates in an unregulated environment, lacking federal oversight. The SEC and CFTC have limited authority, leading to significant regulatory gaps. The irony is highlighted as crypto was meant to decentralize finance, yet Coinbase acts as a centralized intermediary. The need for updated laws and potential future regulatory actions are explored.

What is a common misconception about Coinbase after its public offering?

• It only trades Bitcoin.

• It is a decentralized platform.

• It is a regulated entity.

• It is a small financial intermediary.

Which regulatory body has limited jurisdiction over Coinbase?

• Securities and Exchange Commission

• Federal Reserve

• Department of Treasury

• Commodity Futures Trading Commission

What was Bitcoin originally intended to transform?

• The stock market

• The financial system

• The real estate market

• The technology sector

What is a major irony about Coinbase's role in the financial system?

• It is a large financial intermediary.

• It is decentralized.

• It is regulated by the SEC.

• It only trades in derivatives.

What classification did the CFTC give to cryptocurrencies?

• Commodities

• Assets

• Securities

• Currencies

What is a significant challenge in regulating the cash market of cryptocurrencies?

• Lack of federal regulator

• Excessive regulation

• High transaction fees

• Limited market access

What is a key issue with trusting Coinbase as a financial intermediary?

• It is regulated by multiple federal agencies.

• There is no prohibition against front-running orders.

• It is decentralized.

• It has a best execution rule.