The Codes Behind the Coin, Part 2 with Alan Cohn

This episode of NatSec EmTech continues the conversation with Alan Cohn, Chair of the Financial Innovation and Regulation Practice at Steptoe, by examining the complex legal and regulatory framework governing cryptocurrencies and digital assets. The discussion explores how anti-money laundering (AML) rules, sanctions, and know-your-customer (KYC) requirements apply to blockchain-based financial systems, explaining why cryptocurrency presents both unique challenges and unique investigative advantages. Alan describes how blockchain analytics allow law enforcement to trace transactions, identify patterns of illicit activity, and follow the provenance of funds, making cryptocurrencies fundamentally different, and not necessarily more anonymous, than traditional financial systems.

The conversation also continues to explore the evolving regulatory landscape in the United States, including the roles of the SEC, CFTC, state regulators, and Congress in determining how digital assets should be classified and governed. Alan explains the ongoing debate over whether cryptocurrencies should be treated as securities or commodities, the shift away from "regulation by enforcement" toward clearer legislative frameworks, and the impact of recent proposals on the future of the industry. Finally, Professor Donohue and Mr. Cohn look at cryptocurrency through a national security lens, discussing ransomware, nation-state cyberattacks, sanctions enforcement, and how governments are adapting their regulatory and investigative tools to address emerging threats while fostering innovation.