Shielding DeFi's Infrastructure Builders

Welcome to Crypto Long & Short, our institutional newsletter. This week, we explore two key topics: protecting the builders of DeFi infrastructure and the shortcomings of Ethereum's Layer 2 scaling strategy. Jennifer Rosenthal, Chief Communications Officer at the DeFi Education Fund, discusses the need to shield software developers from misclassification under criminal code, highlighting the bipartisan Promoting Innovation in Blockchain Development Act. Meanwhile, Alexis Sirkia, Chairman and Co-Founder of Yellow Network, argues that Ethereum's scaling issue stems from a flawed assumption about throughput, proposing state channels as a superior solution for peer-to-peer transactions without intermediaries. The newsletter also touches on recent market headlines, including the impact of smart contract exploits and shifts in the crypto derivatives market.