Startups were seeking more information about crypto lending and new rules that blank-check companies may have to follow, or whether the SEC considers NFTs (non-fungible coins) securities. Erin Schneider, the powerful regional director at the SEC's San Francisco office, didn't provide any.
At TechCrunch Disrupt 2021 Schneider, whose team helped to negotiate settlements with Elon Musk, Theranos and more recently App Annie, was very clear that she had limited information.
However, she did share some insight into her personal thoughts about a variety of these issues. (Watch the complete interview with Schneider below).
We asked Schneider about Coinbases crypto lending product. Also, BlockFi, a cryptocurrency lending company, was discussing why it is being regulated by state regulators and urged to cease offering interest-bearing products. (The SEC, a federal agency, put a halt to Coinbases plans.
Schneider stated that startups should expect to adhere to both state and federal regulations. These regulations can vary widely depending on where they are located. She also used the question as a way to clarify a question she was not asked: Can financial products such as Coinbases offer confusing consumers? It was no surprise that her answer was overwhelmingly affirmative.