Regulating Exchanges and Wallets (facilitated by Simon Hawkins, Latham & Watkins LLP; TuongVy Le, Bain Capital Crypto; Jennifer Schulp, Cato Institute; Tiffany Smith, WilmerHale)

Crypto exchanges have come under increased scrutiny on multiple fronts, ranging from listing of unregistered securities to insider trading. As regulators seek to hold digital asset exchanges to the same standards as their traditional counterparts, the industry is highlighting the inherent differences between the two models. This session will delve into concerns raised by regulators and the industry on questions relating to, by way of example, classification of digital assets, registration, custody of digital assets, capital requirements, recordkeeping, security and illicit activity, audits, and reporting. This session will also consider the regulatory push for more disclosures on digital asset transactions between wallets, particularly self-hosted or unhosted wallets, and how the regulatory framework can achieve its mandate without imposing disproportionate and harsh compliance and reporting requirements.