Welcome to Crypto Long & Short, our institutional newsletter. This week, we focus on the need to safeguard the people behind DeFi infrastructure. Jennifer Rosenthal, chief communications officer at the DeFi Education Fund, highlights the growing importance of protecting open-source, permissionless, and programmable technology. She notes that traditional finance companies are increasingly embracing DeFi-related initiatives, and it's essential to defend the policy principles that make DeFi possible.
Rosenthal also discusses the Promoting Innovation in Blockchain Development Act, which aims to protect software developers from misclassification under criminal code. Meanwhile, Alexis Sirkia, chairman and co-founder of Yellow Network, comments on Ethereum's Layer 2 strategy, arguing that the rollup model was designed around the wrong assumption that the limitation was throughput, rather than how value moves between participants. He suggests that state channels could be a more effective solution, allowing participants to transact peer-to-peer off-chain.
The newsletter also includes headlines of the week, a chart of the week, and invites readers to engage with the topics discussed.