Why a Stablecoin Freeze Can Be Front Run: DEX in the City

Description

A new academic paper makes a strange claim: a stablecoin freeze is not a freeze until the transaction lands in a block, which means the funds it targets can potentially frontrun it. Katherine Kirkpatrick Bos, Jessi Brooks, and Vy Le work through what sanctions MEV means for the compliance story crypto tells regulators, then open into the third party doctrine and why your AI chats may not be as private as you think. Hosts: ⭐️ Katherine Kirkpatrick Bos, General Counsel - https://x.com/kkirkbos ⭐️ Jessi Brooks, General Counsel at Ribbit Capital - https://www.linkedin.com/in/jessi-brooks-8289ab32/ ⭐️ Vy Le - Co-host of DEX in the City and General Counsel of Veda - https://x.com/TuongvyLe12 This clip is from a longer conversation on crypto law and regulation. Full episode here: https://youtu.be/qu4AlW3WH4w We go live every Tuesday - subscribe to catch it live. Sponsor Fidelity: Fidelity has been building in crypto and DeFi since 2014 — now they’re hiring. Explore career opportunities at one of the most forward-thinking names in finance here: https://crypto.fidelitycareers.com. Chapters 🧊 00:00 Vy connects two stories: a TRM report on Iran and the ordering-power paper ❄️ 01:22 Why a stablecoin freeze is not a freeze until it lands in a block ⚡ 02:56 A stablecoin freeze can itself be front run 😬 03:11 Jessi on the paper that blew her mind, in the wrong ways 📊 05:05 The stats that scared Jessi: issuer-driven freezes and freezes that ran out of gas 🏧 06:23 Why issuers can't freeze in time: a separate market-driven ordering layer 🔀 06:45 KK on why this should not be conflated with MEV, and the onchain trade-off ⚖️ 10:24 The third party doctrine and the risk of deputizing crypto's neutral actors 🏛️ 12:12 The Fourth Amendment, warrants, and your AI chats as evidence _______________________________________________________ #bitcoin #ethereum #crypto #cryptocurrencies ++++++++++++++++++++++++++++++++++++++++++++++++ Subscribe to our channel! Website → https://unchainedcrypto.com Unchained Daily Newsletter (FREE!)→ https://unchainedcrypto.beehiiv.com/subscribe/ Unchained X → https://x.com/unchained_pod Apple → https://podcasts.apple.com/us/podcast/id1123922160?ls=1 Spotify → https://open.spotify.com/show/1cJrrfGY1SKBIRn5noKSAf?si=6SI4qIcRTEO7EhOe0V9n4w RSS Feed → https://feeds.megaphone.fm/LSHML4761942757 Unchained: Your no-hype resource for all things crypto!