LexLine

In this episode of LexLine, criminal defense lawyer Carlo D’Angelo—the DeFi Defense Lawyer—dives into one of the most consequential crypto trials in U.S. history: the criminal case against Tornado Cash co-founder Roman Storm. Broadcasting live from the heart of legal commentary, Carlo breaks down what’s at stake in this Manhattan courtroom battle and why the outcome could radically reshape privacy rights, blockchain development, and free speech protections.What You’ll Learn:What Tornado Cash is and how its mixing technology works on the Ethereum blockchainWhy the DOJ is charging Storm under the unlicensed money transmitter statute (18 U.S.C. 1960)How privacy-preserving tools like mixers, VPNs, and encrypted messaging apps are being scrutinized under federal lawThe implications of the Blanche Memo and FinCEN guidance—and how they could be game-changersWhy prosecuting open-source software could set a dangerous precedent for developers and investorsReal-world consequences: from pig butchering scams to crypto laundering pipelines and how unsuspecting intermediaries are being criminalizedWhy this case might lead to an appeal—and a potential Supreme Court showdownWhy It Matters:If the DOJ secures a conviction, this case could open the floodgates for criminalizing software tools that promote financial privacy—even if misused by bad actors. It’s not just about Tornado Cash—it's about whether code is speech, and who bears responsibility when code is abused.

The Genius Act is now law — and it's about to revolutionize how we move money. In this episode, Carlo D’Angelo (The DeFi Defense Lawyer) breaks down exactly what the Genius Act means for stablecoins, consumers, banks, fintechs, and the future of U.S. dollar dominance.You’ll learn:What stablecoins are and how they differ from crypto like Bitcoin and EthereumWhy regulated stablecoins matter under the Genius ActHow this law empowers consumers, businesses, and family officesWhy banks are asleep — and how fintech is moving fastThe truth about CBDCs vs. regulated stablecoinsReserve requirements, redemption, anti-money laundering, and more

In this special live edition of Lexline, Carlo—The DeFi Defense Lawyer—breaks down what may be the most consequential week in U.S. crypto policy history. With the GENIUS Act passing the House and headed to President Trump’s desk for signature, we explore what this means for stablecoins, consumers, businesses, banks, and the future of the U.S. dollar.Carlo dives deep into:Why the GENIUS Act was necessary despite existing stablecoins like Tether and USDCHow the bill will create a regulated framework for 1:1 USD-backed stablecoinsWhat this means for banks, merchants, fintechs, and family officesWhy stablecoins could disrupt traditional banking and unlock faster, cheaper, always-on paymentsHow this supports U.S. Treasury demand and strengthens dollar dominance globallyWhat comes next: timelines, licensing, adoption—and how to prepare for “Stablecoin Summer”Whether you're crypto-native or just getting started, this is your roadmap to the biggest financial shift since the birth of the internet.💡 Get ready. The rails are being rebuilt—and it’s all digital.

On Episode 190 of LexLine, I’m joined by Jake Gallen — a dynamic entrepreneur, podcaster, and thought leader at the intersection of crypto, AI, and digital asset innovation. A Las Vegas native, Jake’s journey has taken him from the heart of the city’s entertainment industry to the forefront of blockchain and NFT technology. He is the CEO of Emblem Vault, a leading platform for cross-chain NFT interoperability, and a driving force behind Agent Hustle, an on-chain AI assistant reshaping how users engage with decentralized finance and digital assets.Jake has not only been an early adopter of crypto, diving into Ethereum back in 2016, but he’s also played a pivotal role in bringing blockchain adoption to mainstream audiences through his work, including helping NFTs break into the traditional art world via Sotheby’s. Whether building tools that enhance blockchain usability or hosting in-depth conversations on his own podcast, Jake brings a unique mix of experience, foresight, and hustle to the rapidly evolving Web3 space.In this conversation, we unpack Jake’s path from nightlife to NFTs, explore how AI is transforming DeFi, and dig into the future of digital assets, decentralized tech, and what’s next for Emblem Vault and Agent Hustle.

In a significant legal development, the court overseeing the SEC v. Coinbase case has granted Coinbase’s motion to certify the court's previous order for interlocutory appeal. This decision not only pauses ongoing proceedings but also signals potential ripple effects for the crypto industry and regulatory clarity. Court’s Order Background The SEC sued Coinbase in June 2023, accusing it of operating as an unregistered broker, exchange, and clearing agency. The crux of the case centers on whether the crypto-assets offered on Coinbase’s platform meet the definition of "investment contracts" under the Howey Test, a standard from 1946 used to identify securities. Coinbase contends that the test is outdated and inapplicable to modern digital assets. Court’s Key Findings In its March 2024 ruling:  1. Howey Test Applied: The court analyzed whether the crypto-assets constituted investment contracts.  - Investment of Money: Not disputed.  - Common Enterprise: The court agreed with the SEC that the token values depend on ecosystem development (horizontal commonality).  - Expectation of Profits: The court found Coinbase promoted the tokens with the expectation of ecosystem-driven profits.  2. Rejection of Contractual Obligation Argument: The court dismissed Coinbase’s argument that a formal post-sale obligation is required for an investment contract, emphasizing the focus on economic realities over formalism.  3. Digital Ecosystems as Distinction: The court noted that crypto-assets rely on their ecosystems for value, unlike real estate or collectibles, which possess inherent value.  4. Legal Implications: The ruling left the SEC’s claims largely intact while partially granting and denying Coinbase’s motion for judgment on the pleadings. Interlocutory Appeal Granted The court recognized the broader legal stakes by granting Coinbase's motion for interlocutory appeal. It highlighted the need for appellate guidance on:  - How the Howey Test applies to digital assets.  - Whether the SEC's authority should extend to transactions lacking contractual obligations.  - The potential for a circuit split with conflicting rulings in similar cases (e.g., Ripple Labs).  Why This Matters This case could set a landmark precedent for crypto regulation. If the appeal progresses to the Supreme Court, it might reshape securities laws by clarifying or even redefining the Howey Test for modern financial instruments like digital assets. Next Steps - Proceedings in the trial court are stayed pending the outcome of the appeal.  - The Second Circuit's decision could have industry-wide implications and may set the stage for Supreme Court review. Closing Note This case highlights the ongoing tension between traditional securities laws and the fast-evolving crypto industry. Stay tuned as this legal battle could define the regulatory landscape for years to come.

In Episode 187 of LexLine I talked with Tiffany Fong. According to her X bio, Tiffany Fong is a self-described "potato" who interviews criminals and breaks major stories in the crypto world. She is best known for her exclusive scoops on the FTX and Celsius collapses, along with her candid and hilarious takes on crypto culture. On X, Tiffany has built and monetized a massive following, blending humor, insight, and citizen journalism to make her a truly unique voice in the community. In this episode, we discussed her journey from losing all her crypto bags on Celsius to her groundbreaking interviews and coverage of Sam Bankman-Fried (SBF) and the FTX collapse. Recorded April 19, 2024 .

In Episode 186, I sat down and discussed NFTs and Music with Web3 singer/songwritter Violetta Zironi. Violetta is an Italian born and raised singer songwriter and actress. In January 2022, after a decade long independent career, and multiple movies shoots (including trending Netflix original "Rose Island") she dove into the world of music NFTs. In this interview, we discussed Violetta's journey from the traditional Web2 music industry to Web3 and tips for how new artists can do the same.

On Episode 185 I interviewed crypto journalist Eleanor Terrett. Eleanor covers all things crypto for Fox Business news. In this episode we discussed the SBF's 25 year prison sentence as well as other major legal issues in the crypto and blockchain space.

On Episode 184 of LexLine I interviewed Eugene Dorfman. Eugene is crypto and NFT enthusiast and the owner of Pro Player Insurance LLC Sports & Entertainment Insurance in Miami, Florida. Eugene's agency specializes in providing disability and life insurance coverage for high networth professional atheletes.

In Episode 183 of LexLine I had a conversation with Professor J.W. Verret. J.W. Verret is a lawyer, expert witness and Professor of Law at Antonin Scalia School of Law - Geroge Mason University. We discussed his take on the recent guilty verdict in the Bitcoin Fog federal money laundering trial and what it means for the future of anonymous mixers.

In Episode 182 of LexLine, I had the pleasure to talk with Web3 lawyer and coder Jordan Teague. Jordan is a self-professed “nerd in the basement,” with a passion for merging law and technology to help her clients become more effective, efficient, and forward-thinking. 

On Episode 181 of LexLine, I sat down with attorney Pablo Segerra to discuss the current state of the Web3 start up world and the future outlook for NFT brands. Pablo is the founder of www.SideHustle.Law--a law firm focussed on advising emerging technology entrepreneurs, especially those venturing into online businesses and blockchain technology.

In this episode of LexLine I discuss the recent hearing in federal court on Coinbase's Motion to Dismiss the SEC's lawsuit. On January 17, 2024, Coinbase appared in federal court for a landmark legal battle with the SEC, challenging the agency's claims that it operates as an unregistered broker and clearing agency, and that 13 cryptocurrencies on its platform are securities. This case has the potential to redefine the SEC's regulatory boundaries over cryptocurrency markets in the United States. One of the primary issues for the court to address is whether the 13 digital assets mentioned in the lawsuit meet the legal definition of securities under the Howey Test.

In Episode 179 of LexLine, I talked with crypto CPA Cameron Browne to clarify how IRS Sec. 6040i applies to crypto transactions over $10K.

Had a wonderful converesation with the CEO Psychedelica about the future of NFTs and Web3.

In Episode 177 of LexLine, we sat down with the Girl in the Verse to discuss her journey from traditional broadcast journalist to Crypto and Web3 content creation.

Attorney Jason Schwartz is a tax partner & digital assets co-head at the law firm of Fried Frank. On this episode of LexLine we discussed proposed IRS/Treasury digital asset broker reporting regs that, if approved, would essentially require every user to KYC their personal identifying information to any qualifying digital broker asset platform. This proposed reg raises significant privacy and personal user data security concerns. Here's a link for more on these proposed Treasury regs. https://defidefenselawyer.com/images/pdf/guide-to-proposed-digital-asset-broker-regulations.pdf

Could the perceived "worthless" value of NFTs' Ultimately be A Positive Thing for These Collectables? Rolling Stone recently published an article based on a study by dappGambl, suggesting that 95% of NFTs are worthless. The study included 73,257 NFT collections, with 69,795 having a market cap of zero ETH, suggesting 95% of these NFTs are essentially worthless. ,The perceived worthlessness of NFTs could serve as a positive refining mechanism, fostering innovation, sustainability, and enhanced quality in the NFT space. It allows for market corrections and provides entry points for new stakeholders. Furthermore, seemingly “worthless” NFTs have multiple pathways to potentially gain value over time, through factors like scarcity, historical significance, community building, market sentiment shifts, external validation, and utility enhancement. The dynamism and the multifaceted nature of the NFT market hint at a future where value perceptions and applications of NFTs are diverse and ever-evolving.

In this episode of LexLine I discuss LBRY's notice of intent to appeal th court's ruling LBRY's token, LBRY Credits (LBC), is an unregistered security, supporting the U.S. Securities and Exchange Commission (SEC) stance.  

In this Episode of LexLine I discussed whether the District Court’s ruling in the Uniswap case may iImpact the DOJ’s prosecution of the Tornado Cash decentralized protocol? https://cryptocriminaldefenselawyer.substack.com?utm_source=navbar&utm_medium=web&r=1px4pf

Court rules in favor of Grayscale and notes that l"To avoid arbitrariness and caprice, administrative adjudication must be consistent and predictable, following the basic principle that similar cases should be treated similarly. NYSE Arca presented substantial evidence that Grayscale is similar, across the relevant regulatory factors, to bitcoin futures ETPs. The Commission failed to adequately explain why it approved the listing of two bitcoin futures ETPs but not Grayscale’s proposed bitcoin ETP. In the absence of a coherent explanation, this unlike regulatory treatment of like products is unlawful. We therefore grant Grayscale’s petition for review and vacate the Commission’s order." https://storage.courtlistener.com/recap/gov.uscourts.cadc.38827/gov.uscourts.cadc.38827.1208547574.0.pdf

The DOJ announced yesterday that it has returned an indictment charging the founders of Tornado Cash with money laundering and sanctions violations. DOJ Press Release Two individuals, Roman Storm and Roman Semenov, have been charged with operating Tornado Cash Service, a cryptocurrency mixer, which allegedly laundered more than $1 billion in criminal proceeds. The U.S. Department of Justice (DOJ) announced the unsealing of the indictment, detailing multiple charges against the defendants, including conspiracy to commit money laundering, sanctions violations, and operating an unlicensed money transmitting business.https://open.substack.com/pub/cryptocriminaldefenselawyer/p/tornado-cash-founders-charged-with?r=1px4pf&utm_campaign=post&utm_medium=web

In this episode of LexLine we discussed The United States District Court for the Western District of Texas granted the government’s motion for summary judgment in the Tornado Cash case. See Joseph Van Loon, et. al. v. Department of Treasury. The ruling addressed Plaintiff’s complaint alleging that the taking down of Tornado Cash violated the First, Fourth, and a Fifth Amendments to the United States Constitution. https://open.substack.com/pub/defidefenders/p/implications-of-the-tornado-cash?r=1px4pf&utm_campaign=post&utm_medium=web

On this episode of LexLine we discussed an amicus brief filed by a group of distinguished law professors and scholars who are stalwarts in the field of securities law and related areas filed an amicus brief in support of Coinbase’s position. https://open.substack.com/pub/defidefenders/p/respected-legal-scholars-file-amicus?r=1px4pf&utm_campaign=post&utm_medium=web

In this episode of LexLine we discussed a recent NFT bod trade on the Blur marketplace. The trader Tweeted that he caught a bot shadowing his Blur NFT bids. The trader then made 12 Azuki NFTs available for bid on Blur. The bidder then placed bids on those same NFT assets he already owned to allegedly lure the bot into copying his moves. The bot took the bait and made 50 ETH bids on each of the 12 Azuki NFTs. In the end, the trader accepted the bot’s bids and made a gain of 800 ETH, or US$1.5 million. https://open.substack.com/pub/cryptocriminaldefenselawyer/p/outsmarting-bots-game-theory-or-market?r=1px4pf&utm_campaign=post&utm_medium=web

On this episode of LexLine we discuss Coinbase's motion to dismiss the SEC case under Federal Rule of Civil Procedure 12(c)—stating that the SEC's complaint doesn't contain sufficient factual matter to state a plausible claim. https://open.substack.com/pub/cryptocriminaldefenselawyer/p/coinbase-files-brief-asking-court?r=1px4pf&utm_campaign=post&utm_medium=web

On this episode of LexLine, we discuss the SEC's lawsuit filed against Hex charging misuse of investor funds.

What Lessons From U.S. history Can Help Inform and Predict Future Outcomes for Crypto Regulation? Thinking a lot lately about how crypto depends on the law to survive, yet is also in constant conflict with the people making those laws. And, what if any lessons from U.S. history can we draw on to help predict the outcome of all this? Cryptocurrency and blockchain technology today can be seen as being in a similar situation as other disruptive technologies in the past—including the mass adoption of railroads, telegraphs, and the internet. Each of these technologies transformed society and economies in their own unique ways and led to the passage of new regulations and policies by law makers that worked to manage and temper their impact. Also, digital artis The Sandman (Joe Mangrum) joined us to discuss an amazing new art show he's co-curating in New York. Check out the link for more! https://askforarts.org/event/nft-art-show/

On Episode 155 of LexLine we discussed the Lummis-Gillibrand Responsible Financial Innovation Act (“RFIA”); the Crypto-Asset National Security Enhancement and Enforcement (“CANSEE”) Act; and the House Financial Innovation and Technology for the 21st Century Act. These Bills were all recently introduced and aim to bring regulatory clarity to the digital asset space. So what's in these Bills?

On this episode of LexLine, I sat and visited with the team at Arcade_XYZ to discuss P2P decentralized loans on NFT and physical luxury items. https://www.arcade.xyz/

Amazing conversation with the great @SpottieWiFi about the future of music NFTs and Web3 & Metaverse venues for live performances. https://www.alltimehighfest.com/

We discuss Zero Knowledge Proofs with Special Guest Houman Shadab.

Gemini Lawsuit Against DCF - the TLDR

In Episode 150 we discuss Elizabeth and Franklin's recent article published in IP Watchdog - "Defining Data: Improving Terminology Around Generative AI Models" https://ipwatchdog.com/2023/06/21/defining-data-improving-terminology-around-generative-ai-models/id=162562/

We discuss the much awaited report form John Ray III in the FTX bankruptcy case.

SEC v. Binance: Lawyers for Binance file Motion for an Order Directing SEC Counsel to Comply with Applicable Rules Conduct. On today's LexLine, we breakdown the Binance motion.

Latest updates in crypto & blockchain law! Good to be back!

SEC sues Binance and Coinbase, New Crypto Bill, & Wahi brothers settle with SEC in Coinbase “Insider Trading” case.

On today's LexLine, I sked Chat.GPT-4 if an AI could be prosecuted for wire fraud? Here's what I got back.

We are delighted to welcome Professor Tonya M. Evans as our special guest today on LexLine.

Today on LexLine we discussed the Supreme Court’s holding in the Warhol case and what it means for artists.

Great conversation with Web3 lawyer Rick Tapia @RomeroFactor about the SEC’s response to the Coinbase Mandamus filed in the Third Circuit Court of Appeals

On today's LexLine we discussed the United States Chamber of Commerce's brief filed in support of Coinbase’s writ seeking a response from SEC!

OpenSea verdict/SBF Motions to Dismiss LexLine @RugRadio #140 5-9-23

LexLine @RugRadio #139 5-2-23

Yuga Ruling, OpenSea Trial & More LexLine @RugRadio #138 4-25-23

SEC Gensler Testifies before Congress—LexLine @RugRadio #137 4-18-23

FTX Bankruptcy Interim Report LexLine @RugRadio #136 4-11-23

Treasury DeFi Rpt & National Security? LexLine @RugRadio