2021 Strategic Planning Conference

Crypto The Outlook and Risks

• Market is Growing to nearly $2 Trillion • Potentially starts to reshape the way people borrow, save, and invest. • Broad concerns about: • Illicit finance • Tax avoidance • Data protection • Disintermediation • Regulatory Gaps, Silos, and Regulatory arbitrage

SEC Chair Gensler: “We (SEC) need additional congressional authorities to prevent transactions, products and platforms from falling between regulatory cracks,”

Crypto - What have we done so far?

State Response

CSBS Response • Educate • Convene • Develop Standards • Advocate

• Beginning to train • Convening • Regulatory approaches vary • Specific License • Special Purpose Institutions

• Activity Based licensure • Authorizing custodians