Can TradFi use permissionless blockchains, given the Bank Secrecy Act & sanctions laws?
This
@LawofCodeFM episode is a deep dive into the BSA, crypto compliance and a paper by
@RebeccaRettig,
@malekanoms and
@M_Mosier, which argues that TradFi can embrace blockchains while complying with existing law.
Timestamps:
0:00 Intro
3:24 Problems they see
5:39 The router principle
7:13 What permissionless systems get right
11:28 Lessons from the open internet
14:23 Credible neutrality
19:20 A brief history of the BSA
23:55 What OFAC enforcement looks for
26:16 Treasury, Iran and open networks
28:29 The SEC's innovation exemption
34:03 Compliance belongs at the app layer
37:04 "The government will never allow it"
39:39 The paper's nine-part framework
44:12 Network layer vs. transaction layer
46:28 The $50,000 canoe
48:02 Safety, soundness and final settlement
50:29 Why this matters for national security
51:27 Privacy
58:07 What this means for DeFi
Thank you to the presenting sponsor of this episode,
@altitude.
Nothing in this podcast is legal or investment advice.