Welcome to our institutional newsletter, Crypto Long & Short. This week, we delve into the importance of shielding the people behind DeFi infrastructure. Jennifer Rosenthal, chief communications officer at the DeFi Education Fund, emphasizes the need to protect these individuals, citing the introduction of the bipartisan Promoting Innovation in Blockchain Development Act of 2026, which aims to clarify the legal status of software developers in the space. Meanwhile, Alexis Sirkia, chairman and co-founder of Yellow Network, critiques Ethereum's Layer 2 strategy, arguing that it is flawed due to its focus on throughput rather than the movement of value between participants.
He advocates for state channels as a superior solution, enabling peer-to-peer transactions without intermediaries. The newsletter also features a roundup of the week's headlines, including the impact of smart contract exploits on the market, and a chart highlighting Aave's declining market share following the rsETH exploit.