Shielding DeFi Infrastructure Builders: A Critical Need

Welcome to Crypto Long & Short, your institutional newsletter. This week, we delve into the imperative of protecting the architects of DeFi infrastructure. Jennifer Rosenthal, Chief Communications Officer at the DeFi Education Fund, underscores the significance of this protection, citing the introduction of the bipartisan Promoting Innovation in Blockchain Development Act of 2026 as a crucial step towards clarifying the legal status of software developers in the space. Meanwhile, Alexis Sirkia, Chairman and Co-founder of Yellow Network, critiques Ethereum's Layer 2 scaling strategy, arguing that the rollup model is inherently flawed due to its focus on throughput rather than the movement of value between participants. He advocates for state channels as a more viable solution, enabling peer-to-peer transactions without intermediaries. The newsletter also touches on recent market developments, including the impact of smart contract exploits and the evolving landscape of crypto derivatives. As the crypto sector continues to intersect with traditional finance, the need for thoughtful policy and robust infrastructure becomes increasingly evident.