The FinReg Pod

Go behind the scenes of some of the most interesting topics at the intersection of finance, law, and public policy. Hosted by Lee Reiners.

Prometheum's Aaron Kaplan 03/28/2024

Prometheum's Aaron Kaplan Prometheum is the one firm that other crypto firms love to hate. This is because the firm’s founders and co-CEOs, brothers Aaron and Ben Kaplan, have consistently and publicly argued that most cryptocurrencies are investment contracts subject to SEC registration requirements. In this episode, Aaron Kaplan joins Lee to discuss the process Prometheum followed to receive regulatory approve to operate an alternative trading system and special purpose broker dealer, which allows the firm to offer trading, clearing, settlement, and custody of digital asset securities. Aaron also addresses the frequent criticisms leveled at his firm and offers his thoughts on the future of the digital asset industry. Lee’s Twitter: @leereiners Related Links *Prometheum Receives First of Its Kind Approval From FINRA to Clear and Settle Digital Asset Securities: *Prometheum Announces Custodial Services for Ether (ETH), Opens Account Sign Up For Institutional clients: *SEC may be forced to declare Ethereum a security after controversial new launch: *Blockchain Association Calls for Investigation into SEC Approval of Prometheum Ember Capital as Special Purpose Broker-Dealer: *‘Crypto Communism’? Not in America: *U.S. Senator Tuberville Asks DOJ, SEC to Investigate Crypto Broker Prometheum: *Testimony of: Aaron Kaplan Co-CEO and Founder, Prometheum, Inc. Before the U.S. House of Representatives Financial Services Committee: *Agriculture, Financial Services Republicans Demand Sec Clarify Position Regarding Prometheum’s Custody Of Ethereum’s Ether: /episode/index/show/thefinregpod/id/30573963

What Really Happened at Wells Fargo? 09/14/2023

What Really Happened at Wells Fargo? Well Fargo was an iconic and respected American Brand. But then, in September 2016, in a settlement with the City of Los Angeles, the OCC, and CFPB, it was revealed that approximately 5,300 Wells Fargo employees had been terminated between 2011 and 2016, for sales practice violations that included opening over two million unauthorized deposit and credit card accounts. Earlier this year, Kevin Wack published a 5-part series in the American Banker that shed new details on the scandal. Kevin came on the show to talk about how the series came together and what his reporting uncovered. He also provides an update on what has happened to some of the senior executives involved in the scandal and shares his thoughts on the enduring lessons the Wells Fargo scandal provides. Leave questions and comments at Lee’s Twitter: @leereiners Related Links *Alarm bells, arrogance and the crisis at Wells Fargo: *How Wells Fargo's Aggressive Sales Culture Took Root: *Wells Execs Stuck to the Script as Evidence of Sales Abuses Mounted: *Deal to put ex-Wells Fargo executive behind bars sends tough message: *The Rise and Fall of Wells Fargo with Dick Kovacevich: *: /episode/index/show/thefinregpod/id/28030623

Can Cooperatives Save Web3 and Sports? 08/28/2023

Can Cooperatives Save Web3 and Sports? James Wigginton has thought deeply about economic power and the role cooperatives can play in ensuring Web3 lives up to its stated potential of sharing ownership with users in digital networks. James joins Lee to discuss how cooperatives can be used by Web3 firms to engage with their users, strengthen digital networks, and remain compliant with securities laws. James also talks about the potential for sports fans to own a part of their favorite teams by allowing cooperatives to take minority stakes in teams. Leave questions and comments at Lee’s Twitter: @leereiners Related Links *Cooperatives: An Ownership Model for Digital Networks: *Can fan-owned cooperatives change the relationship between fans and owners for the better? /episode/index/show/thefinregpod/id/27863451

Fixing Carbon Accounting with Emissions Liability Management 08/21/2023

Fixing Carbon Accounting with Emissions Liability Management is a lecturer at Stanford Law and the managing director of Stanford’s Sustainable Finance Initiative. And is the founder of investment advisory firm MNR Capital and a senior research scholar at Stanford University’s Steyer-Taylor Center for Energy Policy and Finance. In this episode, Alicia and Marc offer their perspective on the problems with the current method of corporate carbon counting, known as the Greenhouse Gas Protocol. They also break down a new carbon accounting methodology they’ve developed called Emissions Liability Management, or ELM. Leave questions and comments at Lee’s Twitter: @leereiners Related Links *Carbon Accounting and Emissions Liability Management: *Settling Climate Accounts: Navigating the Road to Net Zero: *Accounting for Climate Change: /episode/index/show/thefinregpod/id/27808311

Payments and the Regulated Liability Network 08/03/2023

Payments and the Regulated Liability Network Tony McLaughlin is Managing Director for Emerging Payments & Business Development at Citi Treasury & Trade Solutions. In this episode, Tony offers his thoughts on the latest developments in payments, including stablecoins, central bank digital currency, and FedNow. He also breaks down an exciting new project he’s been working on, called the Regulated Liability Network (RLN). RLN envisions a regulated Financial Market Infrastructure that could deliver an interoperable network of all facets of the sovereign currency system: central bank money, commercial bank money, and e-money (and in the future, regulated stablecoins). Leave questions and comments at Lee’s Twitter: @leereiners Related Links *The Regulated Liability Network Whitepaper *Regulated Liability Network U.S. Proof of Concept Findings /episode/index/show/thefinregpod/id/27648237

The Current and Future State of the US Economy 03/12/2022

The Current and Future State of the US Economy Joe Davis is chief economist at Vanguard as well as the global head of Vanguard Investment Strategy Group. In this episode, Joe offers his thoughts on what’s driving inflation, how the Federal Reserve is likely to respond at their upcoming policy meeting and beyond, and how investors can insulate their portfolio from inflations pernicious effects. Joe and Lee also reflect on key lessons learned from the last 15 years of economic policymaking. Lee’s Twitter: @leereiners GFMC Twitter: @DukeGFMC Related Links *Ukraine and the Changing Market Environment* Vanguard *Why Do We Think That Inflation Expectations Matter for Inflation? (And Should We?)* Jeremy B. Rudd *Will Inflation Stay High for Decades? One Influential Economist Says Yes* Wall Street Journal /episode/index/show/thefinregpod/id/22427123

Breaking Down the Crypto Executive Order 03/10/2022

Breaking Down the Crypto Executive Order Ari Redbord is the head of legal and government affairs for the blockchain intelligence firm, TRM Labs. Prior to joining TRM Labs, Ari held public sector roles involving cryptocurrency and national security at the Department of Justice and U.S. Department of the Treasury. In this episode, Ari and Lee break down President Biden’s executive order on cryptocurrency. Ari Redbord’s Twitter: @ARedbord TRM Labs Twitter: @TRMLabs Lee’s Twitter: @leereiners GFMC Twitter: @DukeGFMC Related Links *Executive Order on Ensuring Responsible Development of Digital Assets* *FACT SHEET: President Biden to Sign Executive Order on Ensuring Responsible Development of Digital Assets* *Background Press Call by Senior Administration Officials on the President’s New Digital Assets Executive Order* /episode/index/show/thefinregpod/id/22405037

The Problem with Carbon Offsets 03/02/2022

The Problem with Carbon Offsets Barbara Haya directs the . Barbara joins Lee to explain what carbon offsets are and the considerations that must be addressed to ensure that offset credits entering into commerce reflect real, verifiable reductions in greenhouse gas emissions. Specifically, Barbara details why most offset programs issue more credits than they should, and recent policy efforts to bring greater integrity to the voluntary offset market. Barbara’s Twitter: @Barbara_Haya GFMC’s Twitter: @DukeGFMC Lee’s Twitter: @leereiners Related Links: *POLICY BRIEF: The California Air Resources Board’s U.S. Forest offset protocol underestimates leakage* by Barbara Haya * Measuring Emissions Against an Alternative Future: Fundamental Flaws in the Structure of the Kyoto Protocol’s Clean Development Mechanism* by Barbara Haya Barbara Haya directs the . Barbara joins Lee to explain what carbon offsets are and the considerations that must be addressed to ensure that offset credits entering into commerce reflect real, verifiable reductions in greenhouse gas emissions. Specifically, Barbara details why most offset programs issue more credits than they should, and recent policy efforts to bring greater integrity to the voluntary offset market. Barbara’s Twitter: @Barbara_Haya GFMC’s Twitter: @DukeGFMC Lee’s Twitter: @leereiners Related Links: *POLICY BRIEF: The California Air Resources Board’s U.S. Forest offset protocol underestimates leakage* by Barbara Haya * Measuring Emissions Against an Alternative Future: Fundamental Flaws in the Structure of the Kyoto Protocol’s Clean Development Mechanism* by Barbara Haya /episode/index/show/thefinregpod/id/22311029

A Fresh Look at Bank Mergers 02/22/2022

A Fresh Look at Bank Mergers Jeremy Kress is Assistant Professor of Business Law at Michigan Ross and Co-Faculty Director of the University of Michigan’s Center on Finance, Law & Policy. Jeremy joins Lee to discuss how policymakers’ long-standing approach to bank antitrust—premised on consumer welfare—has reduced the cost and availability of basic financial services and ignores numerous non-price harms stemming from bank consolidation. Jeremy details how the Chicago school of antitrust and its focus on consumer welfare came to dominate bank merger review, the impact of fintech on bank competition, and recent policy actions that foreshadow a more stringent review of bank mergers going forward. Jeremy’s Twitter: @Jeremy_Kress GFMC’s Twitter: @DukeGFMC Lee’s Twitter: @leereiners Related Links: * Modernizing Bank Merger Review* by Jeremy Kress * Reviving Bank Antitrust * by Jeremy Kress * Executive Order on Promoting Competition in the American* * Antitrust Division Seeks Additional Public Comments on Bank Merger Competitive Analysis* U.S. Department of Justice * Request for Public Comment on the Bank Merger Act* Joint Statement of Martin J. Gruenberg and Rohit Chopra, Members, FDIC Board of Directors /episode/index/show/thefinregpod/id/22217942

Beware the Crypto Mayor 02/14/2022

Beware the Crypto Mayor Mike Bloomberg is the Public Infrastructure Fellow at the NewCities Foundation and a Visiting Researcher with the Urban Tech Hub at Cornell Tech. In this episode, he examines the dark side of U.S. cities embracing cryptocurrency. Mike and Lee discuss how MiamiCoin and NYC Coin actually work, the nebulous legal relationship between these coins and the cities of Miami and New York, and why anyone would bother purchasing or mining these coins. They also discuss the legal and regulatory risks mayors are taking on by embracing crypto. Mike’s Twitter: @BloombergME GFMC’s Twitter: @DukeGFMC Lee’s Twitter: @leereiners Related Links: CityCoins Website: *Money for nothing: Cities’ crypto push draws fans, critics* Associated Press: /episode/index/show/thefinregpod/id/22126928

Get to Know the PCAOB 02/08/2022

Get to Know the PCAOB Jay Brown and Kathleen Hamm are former board members of the Public Company Accounting Oversight Board, or PCAOB. Jay and Kathleen join Lee to discuss the origins of the PCAOB and the ongoing challenges the agency faces. Specifically, they discuss the role of auditors in overseeing non-financial reporting such as ESG disclosure, the difficulty in getting US-listed Chinese companies to comply with American auditing standards, and whether PCAOB standards adequately reflect the risks of a cyber incident at issuers or at the auditors themselves. Jay’s Profile: Kathleen’s Profile: GFMC’s Twitter: @DukeGFMC Lee’s Twitter: @leereiners /episode/index/show/thefinregpod/id/22056650

U.S. Central Bank Digital Currency 02/01/2022

U.S. Central Bank Digital Currency On January 20th, the Federal Reserve released a discussion paper that examines the pros and cons of a potential U.S. central bank digital currency, or CBDC. In this episode, Marcelo Prates joins Lee to breakdown the paper’s findings and the future of CBDCs in the U.S. and elsewhere. Marcelo is a lawyer at the Central Bank of Brazil and a columnist at cryptocurrency news site, Coindesk. Marcelo’s Twitter: @MarceloMPrates Related Links: *Money and Payments: The U.S. Dollar in the Age of Digital Transformation*, the Federal Reserve Board. *No Reason to Fear Central Bank Digital Currencies* by Marcelo Prates * Legal troubles may delay CBDCs* by Marcelo Prates *CBDC: A Solution in Search of a Problem?* by Federal Reserve Board Governor Christopher Waller /episode/index/show/thefinregpod/id/21985754

Regulating Stablecoins 01/26/2022

Regulating Stablecoins Art Wilmarth is Professor Emeritus at The George Washington University Law School. In this episode, Art discusses his new paper, “It’s Time to Regulate Stablecoins as Deposits and Require Their Issuers to Be FDIC-Insured Banks.” Specifically, Art explains why he believes that stablecoin issuers and distributors should be required to become FDIC-insured banks and the other steps he would like to see financial regulators take in the interim, including having the SEC use its existing authority to regulate stablecoins as “securities” and having the Department of Justice designate stablecoins as “deposits” and bring enforcement actions to prevent issuers and distributors of stablecoins from unlawfully receiving “deposits” in violation of Section 21(a) of the Glass-Steagall Act. Related Links: Art’s profile: It’s Time to Regulate Stablecoins as Deposits and Require Their Issuers to Be FDIC-Insured Banks: President’s Working Group on Financial Markets Report on Stablecoins: /episode/index/show/thefinregpod/id/21898484

Driverless Finance 01/21/2022

Driverless Finance Hilary Allen is a professor of law at the American University Washington College of Law and author of “Driverless Finance: Fintech’s Impact on Financial Stability.” In this episode, Hilary discusses the financial stability risks associated with the rise of crypto-assets, fintech payments, and machine learning; and why she believes regulators should be guided by the precautionary principle in addressing these risks. Hilary’s Profile: Hilary’s Twitter: @ProfHilaryAllen GFMC’s Twitter: @DukeGFMC Lee’s Twitter: @leereiners Related Links: by Hilary Allen /episode/index/show/thefinregpod/id/21851048

Stealing Identity From the Poor 01/14/2022

Stealing Identity From the Poor In this episode, Sara discusses her recent paper “Stealing (Identity) From the Poor.” Sara discusses why low-income individuals are particularly vulnerable to identity theft, why the existing regulatory regime around data breaches ignores the unique needs and circumstances of the poor, and how she would transform this regulatory regime by creating a new federal agency with field offices in all fifty states. /episode/index/show/thefinregpod/id/21776021

Cryptocurrency 2021 Year in Review 01/03/2022

Cryptocurrency 2021 Year in Review In this special look-back episode, Tim Swanson breaks down major developments in the cryptocurrency market in 2021. Tim is head of market intelligence at London-based blockchain company Clearmatics and is the founder and director of research at tech advisory firm Post Oak Labs. /episode/index/show/thefinregpod/id/21663146

Fixing Non-Bank Financial Intermediation 12/01/2021

Fixing Non-Bank Financial Intermediation Costas Stephanou and Matteo Aquilina from the Financial Stability Board (FSB) discuss the fragilities in the non-bank financial intermediation sector that were revealed in March 2020 with the onset of the COVID-19 pandemic and the work of the FSB to address these risks. Non-bank financial intermediaries include money market mutual funds, other open-ended funds, asset managers, non-bank corporate bond dealers, and derivatives central counterparties. /episode/index/show/thefinregpod/id/21339848

CryptoDad’s Fight for the Future of Money 11/15/2021

CryptoDad’s Fight for the Future of Money Chris Giancarlo served as the thirteenth Chairman of the U.S. Commodity Futures Trading Commission. While leading the CFTC, Chris earned the nickname “CryptoDad” for his call on Congress to respect a new generation’s interest in cryptocurrency, an experience he details in his excellent new book “CryptoDad: The Fight for the Future of Money.” Chris is also the co-founder of the digital dollar project, which promotes research into a US central bank digital currency. /episode/index/show/thefinregpod/id/21168764

Climate Stress Testing at the ECB 11/12/2021

Climate Stress Testing at the ECB Laura Parisi is team lead at the European Central Bank Climate Change Center and Spyros Alogoskoufis is a financial stability and stress test expert at the European Central Bank. Together, they spearheaded the ECB’s economy-wide climate stress test which was released in September. The exercise tested the impact of climate change on more than four million firms worldwide and 1,600 Euro-area banks under three different climate policy scenarios. /episode/index/show/thefinregpod/id/21144998

Cryptocurrency and National Security 11/02/2021

Cryptocurrency and National Security Ari Redbord is the head of legal and government affairs for the blockchain intelligence firm, TRM Labs. In this episode, Ari discusses the first time he encountered cryptocurrency as a federal prosecutor, how crypto is being used to evade and undermine US economic sanctions, and how firms like TRM Labs can leverage public blockchains to trace illicit activity. /episode/index/show/thefinregpod/id/21025976

The Rise and Crackdown of China's Tech Power 10/20/2021

The Rise and Crackdown of China's Tech Power Winston Ma is the author of “The Digital War: How China's Tech Power Shapes the Future of AI, Blockchain and Cyberspace.” In this episode, Winston discusses the rise of mobile payments in China, China’s crypto ban and digital yuan rollout, and the recent government crackdown on tech companies. /episode/index/show/thefinregpod/id/20881718

Is the Stock Market Rigged? 10/12/2021

Is the Stock Market Rigged? Liam Vaughan is a senior reporter with Bloomberg and Businessweek magazine in London. His article, ‘Most Americans Today Believe the Stock Market Is Rigged, and They’re Right,’ appeared on the October 4th cover of Bloomberg Businessweek. Liam is a returning guest to the podcast and joins Lee to discuss his new article that examines the disturbing behavior of US corporate executives that trade their companies’ stocks. /episode/index/show/thefinregpod/id/20791961

California’s Push for Climate Disclosure 10/09/2021

California’s Push for Climate Disclosure In this episode, Alicia and Lynn discuss the advisory group’s recent report, “Developing Climate Risk Disclosure Practices for the State of California.” The report offers 45 recommendations to help California make even better budget, procurement, and investment decisions across its 262 billion dollar general operating budget and the 1 trillion dollar combined assets under management of its 3 largest pensions. /episode/index/show/thefinregpod/id/20759789

ESG (What Is It Good For?) 09/13/2021

ESG (What Is It Good For?) Tariq Fancy is Founder and CEO of The Rumie Initiative and the former Chief Investment Officer for Sustainable Investing at BlackRock. His recent three-part series, “The Secret Diary of a Sustainable Investor”, argues that ESG/sustainable investing is intellectually bankrupt and is damaging to the most important causes it purports to support. Tariq joins The FinReg Pod to discuss how he went from an ESG evangelist to ESG critic and why the private sector is ill-equipped to address climate change on its /episode/index/show/thefinregpod/id/20461418

Fixing the U.S. Treasury Market 09/09/2021

Fixing the U.S. Treasury Market Pat Parkinson is a senior fellow at the Bank Policy Institute and project director for the Group of Thirty’s Working Group on Treasury Market Liquidity. In this episode, Pat discusses the Treasury market meltdown in March 2020 and the Group of Thirty’s recommendations to address key Treasury market fragilities. Specifically, Pat explains why the Federal Reserve’s standing repo facility, launched on July 28, 2021, is not sufficient to prevent future dysfunction in the Treasury market. /episode/index/show/thefinregpod/id/20421602

Jerome Powell’s Record on the Economy and Full Employment 09/03/2021

Jerome Powell’s Record on the Economy and Full Employment Mike Konczal is Director of Macroeconomic Analysis and Progressive Thought at the Roosevelt Institute. His recent article “Completing the Revolution in Macroeconomic Policy,” is part of a three-part series from Roosevelt Institute staff that lay out their agendas for the next Federal Reserve term across three different issues: corporate power, climate change, and macroeconomics. /episode/index/show/thefinregpod/id/20360165

The Pandemic Reveals Financial Sector’s Fragility 08/30/2021

The Pandemic Reveals Financial Sector’s Fragility Art Wilmarth is Professor Emeritus at The George Washington University Law School. In this episode, Art discusses his new paper “The Pandemic Crisis Shows that the World Remains Trapped in a 'Global Doom Loop' of Financial Instability, Rising Debt Levels, and Escalating Bailouts.” Art explains the consequences of the Federal Reserve’s backstop of the corporate bond market during the pandemic, what history tells us about the Fed’s ability to taper their quantitative easing program, and more. /episode/index/show/thefinregpod/id/20305472

Addressing the Climate Crisis in the U.S. Congress 08/18/2021

Addressing the Climate Crisis in the U.S. Congress Congressman Mike Levin is one of the leading voices on climate policy in the U.S. Congress. He serves on the House Committee on Natural Resources as well as the House Select Committee on the Climate Crisis, and in this episode, he talks about the findings from the latest UN climate report, the climate provisions he would like to see in the proposed $3.5 trillion dollar budget reconciliation package, and what other government agencies can do to help address the climate crisis. /episode/index/show/thefinregpod/id/20181218

The Current State of Eviction Policy 08/09/2021

The Current State of Eviction Policy Zach Neumann is the co-founder and Executive Director of the COVID-19 Eviction Defense Project in Denver, Colorado. In this episode, Zach discusses the innovative model developed to quickly disburse rental assistance funds, the challenges that states and local communities across the country have faced in distributing $46 billion in Congressionally appropriated rental assistance, and the steps state policymakers can take now to slow evictions and distribute rental assistance funds more quickly. /episode/index/show/thefinregpod/id/20082533

America’s First Cap-and-Trade Program 06/28/2021

America’s First Cap-and-Trade Program The Regional Greenhouse Gas Initiative (RGGI) is a cooperative effort among 11 northeastern and mid-Atlantic states to cap and reduce carbon dioxide emissions from the power sector. In this episode, RGGI Vice Chair and Maryland Secretary of the Environment, Ben Grumbles, breaks down RGGI’s origins and what it takes for states to join the initiative, the auction process to allocate emissions allowances, and the development of a robust secondary market where allowances are continuously traded. /episode/index/show/thefinregpod/id/19635425

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