S3:E3 | Lessons From The Front Lines - Facing the Frontier of DeFi and Crypto

Welcome back to the Compliance in Context Podcast! This episode of the Compliance In Context Podcast marks another iteration of our Lessons From The Front Lines series where we welcome in digital asset and FinTech and RegTech expert Chuck Senatore to explore the origins of cryptocurrencies and digital assets, their impact on the financial markets, and how the regulatory landscape is evolving to address the unique challenges and compliance issues involved as we face the frontier of decentralized finance and crypto.

Show

Interview with Chuck Senatore
- 8:30: What is the origin story of crypto?

- 11:58: What is a merkle root?
- 14:08: What is a distributed ledger?
- 15:15: What are the various assets and investment vehicles that are included in the “crypto” bucket
- 20:10: What are NFTs and alternative tokens?
- 25:30: What are the challenges with these types of assets and what is the value proposition of these assets?
- 31:33: What is decentralized finance and how could it disrupt the marketplace?
- 40:05: What is the state of regulatory oversight for digital assets and the impact of President Biden’s executive order?
- 47:20: What are the some of the challenges with stablecoins?
- 51:53: What in the marketplace have we seen the most significant adoption of cryptoassets?
- 59:00: What are the specific considerations compliance officers need to address as it relates to cryptoassets?
- 62:52: In the digital asset space, what are the gamification and suitability challenges?

Quotes

14:08 - “The other thing that’s important about BitCoin that is important for a number of other developments is the concept of having a distributive ledger that everybody has a copy of. Everybody has it. Every single transaction. Whether in this case it’s the blockchain or we’ll talk about other blockchains that form the foundation of ethereum and smart contracts. The secret sauce is that everybody can see it.” - Chuck Senatore

16:02 - “[Ethereum] is kind of the next most important possible coin because what ethereum has is ethereum tokens. The ethereum system is really the ecosystem that creates the ability to actually create decentralized apps.” - Chuck Senatore

21:54 - “So you have these non-fungible tokens–and the reason that they’re called non-fungible because they have a digital signature that says, ‘You know what? There’s only one of these.’ As opposed to Bitcoin can be fungible and other sorts of things that can be repeated and aren’t necessarily unique. Essentially what makes it non-fungible is it’s uniqueness.” - Chuck Senatore

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