SEC’s Subpoena of PayPal: What It Means for Crypto Regulation

In a recent interview, Austin Campbell, the brain behind Zero Knowledge Consulting, spills the beans on the SEC’s recent subpoena of PayPal documents, highlighting regulatory confusion and the need for a much-anticipated makeover.

Here is what the expert had to say.

Murky SEC: What’s With the Fuzzy Rules?

In an interview with Thinking Crypto, Campbell doesn’t hold back on his concerns about the SEC wading into the crypto world. In a frank chat, he points out the SEC’s confusing rules and their habit of broadening their reach without clear explanations. The crypto expert stresses how having clear rules is crucial for a fair playing field, and he questions the SEC’s motives in going after PayPal, a well-behaved player in the stablecoins scene.

Read More: PayPal’s PYUSD Stablecoin Under SEC Investigation: What’s Next?

Coinbase vs. SEC Showdown

The interview also touches on the legal clash between coinbase coinbase - support@coinbase.com WalletCentralised Exchange and the SEC, highlighting the usual unhappiness that comes with legal decisions. Campbell emphasizes the urgent need for straightforward regulations, using Coinbase’s struggles with unclear rules as an example. He warns Congress about the possibility of crypto activities moving offshore without proper regulations.

“With anything in law, it will be a partial decision that both sides are unhappy with. We could see anything come out of the Coinbase case, and so far, it has not looked good for the SEC, to be clear, but as we work through the court system, you’re looking at anything from,” he said

Lack of Leadership

Delving deeper, Campbell dissects why the SEC does what it does. He points to a lack of informed leadership, an aggressive approach, and unclear rules. Campbell shines a light on the SEC’s internal struggles, from underpayment issues to an overworked staff, urging for a comprehensive overhaul to fix the systemic problems.

Also Read: Congress Bill Challenges SEC’s Regulatory Authority; Gensler Restricted?

Bitcoin ETF Approval: What’s in Store?

Switching gears, Campbell gives us the lowdown on the potential approval of a Bitcoin spot ETF in the next six months. Linking it to the ongoing legal drama with grayscale Investment grayscale Investment - Investment platform , he speculates that the SEC might greenlight multiple ETFs at once to avoid playing favorites.

As the crypto world evolves, Campbell’s insights offer a clear picture of the challenges and opportunities ahead.