'Crypto Dad' Chris Giancarlo Quits BlockFi’s Board After 4 Months
Well, a couple months after that all went down. We have this news that came out yesterday, first reported by our colleague, danny nelson, that chris giancarlo, former cftc chairman, is out of blockfish board of directors hes stepping down after four months on the job. Hes gon na retain some sort of advisory role uh, but its definitely a step back from a prominent figurehead in the crypto regulatory space. So lets ask this to you: will what does this mean for block fi? What should we be talking about when we see christian carlos step down from this position? Yeah im disappointed you didnt say the the journal phrase right that quacks like a duck and walks like a duck, its a duck and so thats. What theyre worried about here with the security, if it looks like a security and sounds like a security, its probably security and thats? What theyre uh worried about the sec here and they hired christian ocala to kind of like facilitate them? Moving into the broader ecosystem as like a larger financial player, and they have a lot of other products that they offer besides just this one product and they wanted to become a neobank. And i think you know its very clear that a lot of people use regulators and former regulators to kind of shimmy their way up the ladder a little bit quicker, and that is not working out right now, because obsessively about this product, or at least thats, like The narrative thats really easy to pull together is that state securities offices are worried about this product and why would uh gina carlo, put his reputation on the line uh from behind the doors id be interested to see if it was something else like there could be Reasons for uh why he wanted to leave uh just like four months into into his tenure there uh, but you know connecting the dots doesnt smell great amy.
I want to throw this back up to you. This is probably conflicting for you. You have a regulator leaving the firm which is probably good, but also its over a security concern. So a little contrast there yeah its also interesting that it sort of parallels the brian brooks leaving binance us right, because giancarlo and brian books were both in the news. At the same time, we had these former. You know head regulators that then move into the crypto space. It was like it created. A big stir. Brian brooks lasted just a few months as ceo of uh finance us coming from being the former comp acting comptroller of the currency and now giancarlo and the cftc is uh joining block fire and then quits after four months. So its just very interesting to watch these things happen and its interesting to see these tactics from these firms where they bring in these former regulators, ostensibly to try and fix things up, then the former regulators leave um so like what does that say? Does that say that these things are beyond repair, that all of these companies are in so much trouble that these people dont want to be associated with it or are there other things going on there like its, not quite clear? What exactly is going on behind the scenes, but very interesting, but zach ill, throw to you yeah? I mean, i think, thats a great point. There was a lot of reason to be bullish on the dc crypto revolving door.
Earlier this year we saw a bunch of activity happening in that direction: right former regulators, former prominent officials joining crypto firms in some capacity. Now we have two very big sort of bear signals on that front where these two uh intertwined former regulators are out the door. So whether or not were gon na see people uh, you know transition over into the crypto world from the regulatory world. I think thats a much more interesting question now, as these uh doubts entered the market, jen ill toss it to you, you guys kind of took everything i was going to say, but i i was just going to say its kind of concerning when the only independent Board member steps steps down from his position. It makes you wonder, whats going on behind the scenes and if, if the situation is fixable, it kind of points towards even more regulatory crackdown in our future, i i dont think weve seen the worst of whats about to happen with regulation when it comes to the Crypto space but ben, i think i saw your hand go up yeah i mean its just been a string of bad press, unfortunately for block fight kind of. Since you know these sort of laudatory raises happening earlier this year. Um. You know this is not the first time this has happened. Uh theres, been you, know, kind of faulty giveaways in their tech system that incorrectly awarded people millions of dollars in bitcoin um.
You know they caught most of it back, but some people took like tens of thousands of dollars off the platform, even though i said like no, you cant and they tried to cancel those withdrawals. Weve had you know them again yet again, arbitrarily lowering interest rates and causing some people to take money off the platform. You have the state regulators starting to look at this. You have john carlo leaving – and i think you know, as weve talked about all these, like massive valuations of these crypto native companies, that weve been seeing. You know every other day. It feels like theres, some of the unicorn, its really interesting, to see a company as the largest block fight and raises the valuation they have sort of start to hit. Those stumbles that we might have expected and weve seen across kind of various boom bust cycles. In regards to tech giants, uh more naturally, so its gon na be one keep watching, but thats sort of to me. This is just yet another data point and this constellation of stuff. That is not looking super great, just really quick personal request for coindesk.