Welcome to Crypto Long & Short, our institutional newsletter. This week, we focus on the need to safeguard the creators of DeFi infrastructure.
Jennifer Rosenthal, chief communications officer at the DeFi Education Fund, highlights the importance of protecting open-source, permissionless, programmable, noncustodial, globally accessible, and interoperable technology. She notes that traditional finance companies are increasingly embracing DeFi-related initiatives, and it is crucial to defend the policy principles that make building and using DeFi possible.
Rosenthal also discusses the Promoting Innovation in Blockchain Development Act of 2026, which aims to protect software developers from misclassification under criminal code. Additionally, Alexis Sirkia, chairman and co-founder of Yellow Network, comments on Ethereum's scaling problem, arguing that the rollup model was never going to deliver a unified scale due to its design flaws. He suggests that state channels, which enable peer-to-peer transactions off-chain, could be a more effective solution.
The newsletter also includes a chart of the week, highlighting Aave's market share slide after the rsETH exploit, and provides a summary of the week's headlines.