Crypto Won the Election. Now What?
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You can find a ink in the showed you're going to bit that l slash breakdown pod, all right, friends, back with another crypto election related L R S. Pretty still what everyone is talking about, especially as bitcoin has had such a monster week. But there are some really interesting theme s here.

We're starting to get away from just the wow, this is great into the specifics of how it's great and what we need to do next. And both of our pieces today are on those themes. The first comes from front of the shower, Christopher perkins, who writes the real winner of the twenty twenty four elections, the cyp to industry. He talks about five areas that stand to benefit. Let's kick over to an A I version of myself for this S A .

for the cyp to industry. The elections in twenty twenty four war, a game changer with two hundred and eighty seven procyta members of congress and a president elect, tus proclaimed that the us. Will be the ecliptic capital of the planet the industry is poised to be on an accelerated path toward mainstream adoption as market participants digest the potential impact.

One thing is certain, a pivot from regulation by enforcement to a regulatory regime where clear, transparent and predictable rules are prioritized will be a major unlock for the space. The inevitable regulatory d risking that will follow will open the door to a new class of markets, products and applications. Here are some verticals that could thrive in this new environment.

One decentralized finance defy defies one of the most exciting crypto powered innovations, where applications deploy smart contracts to replace intermedia areas, offering universal access to trading, borrowing, lending and other financial services. To date, regulators have remained steadfast in their insistence that intermedia must be required. Undermining the fundamental innovation of defy.

A favorable regulatory climate will change this. A clear regulatory framework could also pave the way for token holders to compliantly share in protocol revenue, something long sought by industry participants to artificial intelligence. With artificial intelligence, A I exponentially accelerating and A I agents arriving years earlier than expected, the openness, transparency, scale and even a proof personhood achieved by integrating crypto in A I could pave the way for responsible innovation across both technologies.

Three, fixed income markets. Interest strates are the backbone of traditional financial markets. Vacant fixed income markets are poised to grow as financial institutions now facing less regulatory resistance enter global crypto markets.

Benchmark yelled like the composite, either staking rates, C, S, R and perpetual swap funding rates will bring the utility of the five hundred trillion dollars straw market to the cypher space, appealing to hedgers. And speculators like for utility tokens during the S, C, C S. Regulation by enforcement regime.

Tokens that demonstrated utility were often targets for enforcement, as a result mean coins, tokens with no utility flourished. A favorable regulatory climate could refocus the market on utility, something that could fuel additional mainstream adoption. Five, decentralize musical infrastructure to pin deep in uses the incentivizing of tokens to drive mass community participation, allowing for the creation of large decentralized physical networks across tech, communications, mapping, computing and geolocation industries. These networks are providing more scalable and cost efficient solutions than their centralized peers. Trump two point zero and the bi partisan procyon to congress will usher in a brave new world for the cyp to industry a regulatory environment that encourage his innovation rather than stifles IT will finally give institutions the confidence to enter the market and entrepreneur s no longer shackled by the threat of regulatory sanction or personal liability will be free to focus on building the future could not be brighter.

Next up we turn to a second S A. This one by iron brogan called time for cypher to to put the pedal to the floor. Now this reflects a theme that i've been really seeing a lot this week. So let's turn IT over once again to A I to read this, and then i'll be back to discuss where I think IT fits in the current conversation.

In the wake of the U. S. Presidential election, I was reading various round ups and postmortems when one article here at coin desk stood out as particularly good. E. Y.

Professional poverty argue that block chains path to success lies in the extreme competition that at Fosters he compares blockchain to the slow ascendency of voice over I P void writing. Despite the internet inherent drawbacks, s IT has come to dominate communications because IT is cheap, widely available, and internet communication services are intensely competitive. Frankly, I think the comparison is inspired.

I couldn't help you feel that brody gloss over one crucial piece of the equation though. With respective voip rights, the entire cycle of deregulation, monopoly, break up, reconfiguration and shift to internet mobile took place over twenty years. This comparison treats regulation as a foregone conclusion, but I think this is actually the crucial blocking issue of our time.

Since january twenty, twenty one, security and exchange commission chair gary gangs ler r has implemented policy to stifle cyp to currencies development. Now with Donald trump accedent, the industry can expect a new S, C, C, chair and new policy, but that will not be the end of the story. Regulatory arbitrage.

The truth is deregulation is not something that happens on its own. Crypto currency value depends in large part on achieving IT. These next four years will provide an opportunity to do so, but we should expect a battle.

Here's why capital markets in the united states have been regulated by essentially one regime for nearly a hundred years. In the wake of the great depression, a series of legislation created the S, C, C and empowered IT to implement certain requirements for companies seeking to raise public capital. This full array of security's regulation included the obligation to publish a prospectus, ongoing reporting requirements, and the requirement that certain financial intermediaries be registered as broker dealers or national security exchanges.

Each aspect of this regime may be justifiable consumer protection, but the result of IT altogether is that accessing public capital markets is prohibitively expensive for all but the largest businesses. The accounting firm P. W C estimates the average cost of even the smallest public offerings as between two and twelve million dollars.

Ongoing compliance is similarly expensive, such that even the S. C, C has recognize that the disclosure requirements placed a disproportionate burden on smaller reporting companies. In terms of the cost of compliance, there are a number of exemptions that allow the sale of so called example securities, including redd redge a and reg C F, but these regimes seriously limits secondary market liquidity, and access to secondary markets is a crucial component to attracting primary investment.

The result is a drag on the real economy so much that the management consulting from mckinsey and company identified access to working capital financing as a limiting factor in the productivity of american small businesses. Crypt to currency was a technological development, but the effect of that development was to create regulatory arbitrage without the olds. Clorox restrains, the fresh capital markets that cyp to currency exposed, exploded almost immediately in twenty eighteen alone.

Crypto currency firms raise ed twenty point three billion dollars in token offerings. Compare this to the anemic five hundred million dollars raised in reg. C.

F. Offerings in twenty twenty three. The difference was not just in the primary issuance. Secondary cyp to currency markets were incredibly liquid almost immediately, which likely helped projects raise funds. Although many companies that conducted initial coin offerings in twenty seventeen and twenty eighteen failed in lost all value quickly, a number of projects funded in this boom subsequently experienced sustained increases in value. Poke A D O T raised sixty five million dollars in a public token sale in twenty seventeen and now has a market cap of nearly seven billion dollars.

Salona S O L raised one point seven six million dollars in a twenty twenty public token sale at a Price of twenty two cents per token, which is now appreciated more than nine hundred x to one ninety eight dollars, eighty nine cents per token chain link link raised thirty two million dollars in a twenty thousand I C O Price to eleven cents per token, which is since appreciated one hundred twenty three x to thirteen dollars, fifty six cents per token, even though crypt to has its boom bus cycles chair gansler ors twenty twenty one a sentence cast a pall over the industry, independent of the usual volatility. Just look at the coin desk, twenty index of the largest crypto currencies, only one launched after january twenty twenty one. Looking back now, this regulatory intervention makes sense if the greatest power of hypo currency is to create plausible methods to avoid over intrusive regulatory requirements that its existence is a direct chAllenge to regulators.

Power crypto currency and the american economy as a whole are not zero. Some competitions, when crypto projects and small businesses succeed, we are all enrich ed. The competition between the S, C C and the crypto currency industry, on the other hand, is zero.

some. Either the S, C, C can ban these markets or crib currency projects can access them. Both cannot be true at once the years ahead. Now Donald trump is promised to lift the implicit ban on crypto projects that the rules will be written by people who love your industry. The industry is rightly cheering his election as a bullish indicator, but hold off on the Victory lap.

This is just the beginning when you recognize that cyp to disempower ers, the esc IT is obvious that the agency will never give up freely. Whoever mr. Trump picks as sec chair will be friendly er to the industry and chair gansler er by default but they will have the same incentives to preserve authority and four years from their appointment they will be gone and anyone can take their place with the cyp to industry.

One on now five then was a chance from now until january twenty th, twenty twenty nine. We have to push the pedal to the floor to ensure that whoever comes next at the S. C, C can never disappoints industry again.

The way I see if that task is too pronged. First, the industry has to continue to expand retail adoption to gain enough consumer support that IT is in dispensable. When uber s feet were being held at the calls, IT was retail customers messages to politicians that saved IT.

Crypto is the natural sector to repeat this playbook, so our value proposition to the retail voter should be undeniable. Second, we should work with our new allies in washington to implement a legislative solution to permanently ino crypt to currency. As a regulatory third way, there can be no half measures. Only congress can build a foundation beyond the reach of future regimes.

All right, so pedal to the floor.

boy.

If you look at the news from this week, coin basest peppi and all of these crazy tf being filed IT is very clear that the industry is on the same wavelength. I tend to think that in the wake of the insane battles that we had to face in this last cycle, the gypo industry appreciates more than ever that IT does not have a moment to waste in this positive regulation environment quite soon.

Or also, I think, going to have to face the reality that crypto, while no longer a target of the White house, still has to compete with everything else when IT comes to political priorities. And so the time to push hard on everything that's necessary when IT comes to crypt al regulation is now it's going to be a fascinating dynamic time. And like I said, I don't think companies in the space are going to waste a single minute of IT for now though, that will do IT for the breakdown preciate you listening as always and until next time, be safe and take care of each other. peace.