In this episode of the FTF Exchange Podcast, host Nick Holland speaks with Hermine Wong, a lecturer at UC Berkeley School of Law and former policy leader at Coinbase, to discuss the evolving regulatory landscape of digital assets and financial services. Wong reflects on her career journey, highlighting the intersection of law, technology, and finance, and how her early exposure to the internet’s democratization shaped her approach to crypto regulation.
The conversation delves into the shifting regulatory dynamics under the Trump administration, comparing it to the previous Biden administration’s slower, report-driven approach. Wong cautions that while the current administration appears more open to crypto, its regulatory efforts may favor a select group of industry players, creating barriers rather than fostering true democratization.
Further, Wong examines systemic risks, market volatility, and fraud in digital assets, explaining how financial firms can navigate regulatory uncertainty. She predicts that regulators will prioritize oversight where they have the most data, focusing on major cryptocurrencies like Bitcoin and Ethereum while monitoring broader market risks. Wong stresses that while volatility itself isn’t inherently harmful, fraudulent activities within the crypto space could have far-reaching consequences.
For financial firms looking to future-proof compliance strategies, Wong advises against chasing hype, urging them to apply traditional financial risk management principles to digital assets. She underscores that crypto will not receive a regulatory free pass, and firms should continue to uphold robust compliance measures as they integrate these new asset classes.
The episode offers insightful perspectives on the evolving regulatory climate, the role of financial institutions, and the future of digital asset governance, making it a must-listen for professionals navigating the intersection of finance, law, and technology.
