Ash Bennington discusses the U.S. SEC proposal for new rules on who can custody digital assets, Binance reportedly admits it expects incoming fines from the U.S. with Christopher Perkins, the president of CoinFund and former managing director at Citi and Lehman Brothers.
Read our notes below to learn more.
Crypto Venture Capital Investment
Christopher
The underlying resiliency of these markets is profound.
There's real value in these assets.
Smart people are coming in and value is being created.
Yields are rising and in certain cases, stablecoins today don't pay through interest, to the extent that people are looking for additional exposure to the asset class.
The SEC became more active recently.
Ash
This is just an enormous opportunity.
SEC Enforcement
Ash
The amendments are also to come as the SEC aggressively accelerates enforcement attempts.
CoinDesk reports that crypto exchanges, Coinbase and crypto bank Anchorage, say they would be fine under the new rules.
Christopher
The industry just went through a pretty traumatic time.
A number of different client assets were lost across numerous different insolvencies.
Across the industry and across the regulatory space, everybody believes that client asset protections are an important principle that we need to solve.
They are supportive of a regulatory Sandbox.
With things such as blockchain technology, you don't need an intermediary.
They want a system that protects your assets.
It's a super comprehensive rule put out by the SEC, it’s 433 pages long.
Want more Notes like this?
We create 10+ of these Notes every day for our members and you can access 2-3 notes per day for free on our site.
Sign up for a FREE Revelo Intel account here
Systemic Risk
Christopher
Bitcoin is awesome, and an incredible opportunity.
Bitcoin eliminates systemic risk because you can settle in near real-time.
In the end, he thinks that these technologies will prevail.
Regulation should be actually empowered. It should be empowered through legislation.
Ash
Stablecoins will be intensely regulated.
Navigating Legacy Jurisdictions
The way jurisdictions work today is that everything in the world is a commodity, except for movie receipts, onions, and securities.
The test to determine whether something is a security or not is the Howey Test.
If we have technology that can be more efficient, have fewer intermediates, fewer fees, and can allow more inclusivity, let's embrace it.
Binance Monetary Fines
Ash
In an exclusive interview with the Wall Street Journal, Binance Chief Strategy Officer Patrick Hillmann said Binance expects paid monetary fines to settle ongoing US investigations.
Hillmann man said Binance has been working to ensure no gaps and compliance exist today.
But Hillmann admitted the company would still have to pay for past conduct.
Christopher
Centralized entities need to be thoughtfully regulated.
They should be able to protect client assets.
They should be following laws in the jurisdictions where they apply.
It's really important to differentiate between centralized providers, technology, and DeFi.
Stories Today
Andreas Paepcke is a senior research scientist, he put up $200,000 for Sam Bankman-Fried's bail. And Larry Kramer is a former dean of Stanford Law School, he committed $500,000.
Kramer told CoinDesk, he did it because of his friendship with SBF's parents.
The Block reports that Square Enix, the creator of Final Fantasy and one of the world's biggest gaming studios, is working on a game that will run on the Polygon blockchain.
Hong Kong has just gone through the world's first issuance of tokenized green bonds.
Chris's Thoughts on Gaming Stories
Games take a long time to be built.
Instead of just earning an in-game asset, you can actually take that asset outside of the system, and it can be financialized and traded.
The time to market with a lot of gaming will be much quicker as we unleash AI to develop code faster than ever to also create environments.
Chris's Thoughts on HongKong Story
Hong Kong seems to be warming up again to tokenization in crypto.
Typically, when Hong Kong moves, it'll incentivize Singapore to get more active as well.
Q&A
Q: Can you give us a take on the current regulatory action impacting Paxos?
They don't have derivatives in the United States that are accessible to U.S. persons.
They don't have scalable derivatives and derivatives are used to hedge risk.
They can't hedge our risk in crypto.
Whether it's settled or whether there's court action, that equilibrium will be established.
While that equilibrium is being figured out he hopes that they go back and focus on legislation.
Q: What happens if the USA does not give clarity to crypto?
The technology is here.
The White House does talk about and understand that there are efficiencies and benefits of the technology.
Thinking long term, there's no stopping the adoption of technology.
Q: Do you foresee in-game crypto rewards able to be traded in real-world products?
They have the ability to put private property on the internet.
They can create things of value.
Web3 allows you to do is to earn something of value.
Tax remains a huge problem.
Q: Do you think crypto could still retest its lows in the rising interest rate environment?
A: Christopher is confident in the long-term adoption and trajectory of the space.
Key Takeaways
Long-term bullish for the space.
People are continuing to build.
Short-term volatility in the space.
Innovation is happening in the world right now.
Check out these important links
Want more Notes like this?
We create 10+ of these Notes every day for our members and you can access 2-3 notes per day for free on our site.
Sign up for a FREE Revelo Intel account here