Former Counsel of SEC Commissioner Speaks Out

The former counsel of SEC Commissioner Hester Pierce, Coy Garrison comes with first-hand knowledge about the agency and its operations. He shares his insight on how cryptocurrencies were seen through a different lens then by those within it – including himself during an earlier time in his career when he has involved in litigation proceedings against Ripple Inc for misleading investors over potential use case around blockchain technology.

Laura Shin’s new podcast, “Unchained,” is a must-listen for anyone interested in the world of crypto. This week’s episode features an interview with Coy Garrison who has served as counsel for SEC Commissioner Hester Pierce and comes equipped with first-hand knowledge about how regulatory bodies such as his own interact with cryptocurrencies from both inside AND outside perspectives.

Crypto is a hot topic these days, and the SEC has not been pleased with how it’s being treated. A recent case against Ripple for failing to register more than $1.4 billion in securities attracted headlines across tabloids. This is an ongoing disagreement over crypto trading laws that have only grown.

He added that the attention crypto is getting in Washington “is tremendous!”

Coy Garrison was then asked to give his assessment on the recent comments from Commissioner Peirce when she said that the regulatory ball had been dropped.

“We’re not allowing innovation to develop and experimentation to happen in a healthy way and there are long term consequences of that failure.” 

While most of the other board members agreed, Commissioner Peirce’s opinion stood out. She believes that collaborating more between agencies and encouraging requests for no-action letters from crypto companies will help innovation grow in this new industry while also preventing any mistakes before they happen.

The question of why the SEC has not approved Bitcoin spot ETFs is becoming more bemusing for crypto investors since futures exchanges have been given approval while they are still waiting. Garrison feels hopeful about them as he believes this will change soon enough, but there are those who want to prevent fraud and manipulation through rules that might guide where such investments can go in an ETP-type product.

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“You establish that you have a surveillance sharing agreement with a regulated market of a significant size and you have to demonstrate that that regulated market is where somebody that wants to commit fraud would actually have to go to commit fraud.”

The professor believes that research is key to reaching any conclusions about the subject.