Ji Kim

General Counsel & Head of Global Policy, Digital Assets @crypto council. Formerly@Gemini, @KrakenFX, & @WillkieFarr. Tweets are not legal advice. Views mine.

[Ji Kim @__jikim]

It is beyond unfortunate that the SEC has attempted to regulate the digital assets industry through a regulation by enforcement approach without providing any needed guidance or clarity. As @crypto_council and I have previously stated, this is why it is so critical for Congress,

[Ji Kim @__jikim]

8/ At a time when the digital assets industry needs clarity, this rule delivers further confusion. And this despite the industry repeatedly seeking to engage constructively and in good faith with the SEC through comments and dialogue. Our system of government

[Ji Kim @__jikim]

8/ At a time when the digital assets industry needs clarity, this rule delivers further confusion. And this despite the industry repeatedly seeking to engage constructively and in good faith with the SEC through comments and dialogue. Our system of government requires

[Ji Kim @__jikim]

Commissioner Mark Uyeda similarly raised concerns in his dissent:
"Today's action codifies the Commission's view that the "dealer" definition is practically limitless. The public should be concerned about the immense scope of this claimed jurisdiction."

[Ji Kim @__jikim]

7/ Commissioner Mark Uyeda similarly raised concerns in his dissent:
"Today's action codifies the Commission's view that the "dealer" definition is practically limitless. The public should be concerned about the immense scope of this claimed

[Ji Kim @__jikim]

8/ At a time when the digital assets industry needs clarity, this rule delivers further confusion. And this despite the industry repeatedly seeking to engage constructively and in good faith with the SEC through comments and dialogue. Our system of government requires better.

[Ji Kim @__jikim]

7/ Commissioner Mark Uyeda similarly raised concerns in his dissent:
"Today's action codifies the Commission's view that the "dealer" definition is practically limitless. The public should be concerned about the immense scope of this claimed jurisdiction."

[Ji Kim @__jikim]

6/ "The rule covers providers of liquidity in crypto asset securities. Not only do the tired questions about when a crypto asset is a security remain, but the rule raises new questions about how the rule will apply in the context of automated market makers ("AMMs"). For example

[Ji Kim @__jikim]

5/ Even Commissioner @lHesterPeirce expressed her confusion that even AMMs (automated market makers) may have to register as a dealer under the current final rules-see
.

[Ji Kim @__jikim]

4/ (Of course the question still remains what, if any, crypto assets are securities? This is guidance CCI and the broader industry has been seeking to no avail.) As one example, the expanded definition might now include the automated and algorithmic trading technology to execute

[Ji Kim @__jikim]

3/ The final rules do not address fundamental differences and nuances related to crypto assets, DeFi, markets, or participants. The initial proposal merely mentioned crypto in a footnote.

[Ji Kim @__jikim]

2/ These adopted rules require market participants who provide significant liquidity to the markets (and have $50 mill or more in assets) to comply with federal securities laws (e.g., registering as a dealer), including when transacting in crypto securities (which the SEC...

[Ji Kim @__jikim]

1/ The SEC voted today 3-2 (Cmmsrs Peirce and Uyeda dissenting) to adopt rules to redefine and expand what it means to be a securities "dealer." The expanded and vague definition broadly sweeps in more entities trading any crypto assets that the
SEC deems to be securities, withou

[Ji Kim @__jikim]

ICYMI, below is a positive development.

There is no Form 8300 reporting obligation for digital assets until regulations are actually issued. There will be an opportunity for public comment.

Read more 👇:

[Ji Kim @__jikim]

10/ If there is anything to be gleaned from various amicis filed in this matter (in support of both sides) is the fact that there is a lack of regulatory clarity regarding digital assets, which further reaffirms the need for Congress to act.

[Ji Kim @__jikim]

9/ It is reasonable to ask the Qs in this letter, and we will work w/ policymakers to do our part to come up w/ practical policy solutions to stamp out illicit activity. crypto_council and industry can be a helpful partner. We are all committed to protecting our nat'l security.

[Ji Kim @__jikim]

8/ Government officials need to have technical expertise to track, trace, and seize funds illicitly used on the blockchain. The U.S. will lose this skill if all of the expertise is offshored.

[Ji Kim @__jikim]

7/ The (unfortunate) outcome would be that it would push innovation offshore, which only leads to less US oversight w/o advancing nat'l security or AML/CFT objectives.

[Ji Kim @__jikim]

6/ This bill would extend BSA/KYC responsibilities to persons that cannot comply-not b/c they do not want to or b/c it is difficult to do so, but b/c there is no actual way to do so.

[Ji Kim @__jikim]

5/ There's been a lot of discussion about the
"Warren/Marshall" bill. Respectfully, this bill unfortunately fails to pursue AML/CFT compliance that addresses the direct risk