Stablecoins as securities could spell ‘Armageddon’ for crypto, says Robert Leshner

US financial regulators are conducting a coordinated front against certain crypto companies in what Compound Labs Founder Robert Leshner says is a "planned set of product takedowns."

One particular case to watch is the SEC's potential suit against Paxos over its BUSD stablecoin, which the SEC is alleging is an unregistered security. According to Leshner, this case is of particular importance given the precedent it could set for the billion-dollar stablecoin industry:

"If there's an argument that USDC and Tether are securities and this winds up being contested over months and years, if it doesn't go the right way, I think it's an Armageddon scenario for a lot of crypto."

During this episode, Chaparro and Leshner also discuss:

• The trade-offs between CeFi vs. DeFi risks
• How to refine decentralized governance
• Why crypto is set to flourish off-shore

This episode is brought to you by our sponsors Circle, Railgun, Flare Network, NordVPN

About Circle

Circle is a global financial technology company helping money move at internet speed. Our mission is to raise global economic prosperity through the frictionless exchange of value. Visit Circle.com to learn more.

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