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

Episode 11of Season 5 of The Scoop was recorded remotely with The Block’s Frank Chaparro and Compound Labs Founder Robert Leshner.

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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