Welcome to Crypto Long & Short, our institutional newsletter. This week, we focus on the need to safeguard the people driving DeFi innovation. Jennifer Rosenthal, chief communications officer at the DeFi Education Fund, emphasizes the importance of protecting open-source, permissionless, and programmable technology that underpins 21st-century finance. She highlights the introduction of the Promoting Innovation in Blockchain Development Act, aimed at protecting software developers from misclassification under criminal code.
Meanwhile, Alexis Sirkia, chairman and co-founder of Yellow Network, argues that Ethereum's Layer 2 scaling strategy is flawed due to its focus on throughput rather than the movement of value between participants. He advocates for state channels as a more effective solution, enabling peer-to-peer transactions without intermediaries.