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Blockchain technology is about to transform every trust-based interaction of our lives, from financial services to identity, from health care to our Internet of Things devices. In this podcast, host Laura Shin talks with industry pioneers across tech, financial services, health care, government and other sectors about how the blockchain and cryptocurrency will open up new opportunities for incumbents, startups and everyday people to interact more efficiently, directly and globally.

Jun 14, 2022

Olta Andoni, deputy general counsel at Ava Labs, and Ari Redbord, head of legal and government affairs at TRM Labs, discuss the Terra stablecoin meltdown, implications for impending international regulations, and the history of stablecoin regulation internationally. Topics covered include:

  • What the most important legal issues are for the Terra meltdown
  • How the Terra implosion will trigger more regulation of the space
  • How regulators seemed to think stablecoins should be regulated even before Terra
  • How their approach differs between dollar-backed stablecoins vs. algorithmic vs. crypto collateral-backed coins
  • How European regulators want stablecoin issuers to be treated like banks
  • What the Lummis-Gillibrand bill would mean for US stablecoin regulation
  • Whether Terra’s demise will mean that regulators won’t tolerate experimentation with algorithmic stablecoins 
  • Why regulators will be skittish about stablecoins in response to Terra’s  meltdown
  • Why Olta and Ari were impressed by the NY Department of Financial Services guidance on stablecoins
  • What the establishment of SEC jurisdiction over Terraform Labs based on the Mirror investigation from last fall means for any enforcement action by the SEC over Terra 
  • Whether Do Kwon and/or Terraform could face criminal charges in multiple jurisdictions
  • Why international regulatory consistency is important in the crypto space
  • Whether civil and class-action lawsuits against Terraform could be expected
  • How Terra 2.0 could open TFL up to further action from regulators and law enforcement
  • Why more education is needed to overcome anxiety about DeFi regulations
  • How hack nondisclosures could be subject to government investigation


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Episode Links






Lummis-Gillibrand Bill

  • Bill Introduction:



  • FINMA:

  • FINMA on Stablecoins:

  • FINMA Publishes Stablecoin Guidance:



  • Guidance on Stablecoin Issuance:

  • Press Release:

  • CNBC Coverage:


SEC Actions Against Terra

  • SEC Investigating UST Stablecoin Blowup in Fresh Threat to Terra:

  • Terraform Labs Loses US Appeal over SEC Subpoena:


Allegations against Do Kwon




Facebook Libra

  • Facebook Libra: The Inside Story of How the Company’s Cryptocurrency Dream Died:

  • Mark Zuckerberg’s Stablecoin Ambitions Unravel with Diem Sale Talks: