Welcome to Crypto Long & Short, your institutional newsletter. This week, we delve into the world of DeFi infrastructure and the need to protect its builders. Jennifer Rosenthal, chief communications officer at the DeFi Education Fund, emphasizes the significance of preserving the technology and infrastructure that underpins DeFi.
With traditional finance companies increasingly embracing DeFi-related initiatives, it's crucial to defend high-level policy objectives that support this growth. Rosenthal highlights the Promoting Innovation in Blockchain Development Act of 2026, which aims to protect software developers from misclassification under criminal code. Meanwhile, Alexis Sirkia analyzes Ethereum's scaling problem, arguing that the rollup model was flawed from the start. He advocates for state channels as a superior solution, enabling peer-to-peer transactions without intermediaries.
As the crypto landscape continues to evolve, it's essential to prioritize thoughtful policy outcomes and innovative solutions that foster clarity, reduce uncertainty, and promote responsible participation in both centralized and decentralized markets.