We kicked off #FMQ with a panel discussion moderated by Stacey Cunningham, Former President, NYSE and Board Member, Psaros Center for Financial Markets and Policy, on innovating through cryptocurrency — and whether traditional finance (TradFi) and decentralized finance (DeFi) can coexist.
David LaValle (C’99), President, CoinDesk Index and Data, put it simply: “It’s clear that they both have to coexist.”
Samara Epstein Cohen, Global Head of Market Development, BlackRock, says that the application of disruptive technology in markets can elevate the quality of markets, but — as was the case with ETFs — it won’t happen right away. With ETFs, first there was real investor demand. Meeting that demand then led to a large uptake in new technology.
The key to innovation in crypto, the panelists said, is regulatory clarity.
“The U.S. needs to play catchup,” said Stuart Alderoty, Chief Legal Officer, Ripple. “Clarity shouldn’t be controversial.” He added that while we wait for legislation, there needs to be more guidance from the SEC, like we’ve recently seen with meme coins and certain types of staking.
Bo Li, Deputy Managing Director, International Monetary Fund weighed in on the regulatory side. He said that while we are seeing a rising risk of money laundering and terror financing, the public and private sector need to work together to protect investors and the market. Take stablecoins. He said while new technology should be supported, stablecoins’ quality and creditworthiness need to be ensured.
But “if you seek zero fraud, it’s folly,” said Daniel Gallagher (C’94), Chief Legal, Compliance, and Corporate Affairs Officer, Robinhood.