Welcome to Crypto Long & Short, our institutional newsletter. This week, we focus on the importance of safeguarding the people behind DeFi infrastructure.
Jennifer Rosenthal, chief communications officer at the DeFi Education Fund, emphasizes the need to protect the technology and infrastructure that make DeFi valuable. She highlights the introduction of the bipartisan 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, argues that Ethereum's scaling problem was never about throughput, but rather about how value moves between participants.
He suggests that state channels, which enable peer-to-peer transactions off-chain, could be a more effective solution than rollups. Other topics include the growth of traditional finance companies in DeFi, the importance of shaping thoughtful policy outcomes, and the impact of smart contract exploits on the market.