On The Brink with Castle Island Weekly Roundup 12/12/25 (Do Kwon sentenced, DTC no action letter, Circle's private stablecoin) (EP.690)
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Dec 12, 2025 Matt and Nic dive into the fallout from Do Kwon's sentencing, exploring the implications for crypto credibility. They discuss the DTC's no-action letter that clarifies regulations for tokenized securities and the launch of Circle's privacy-focused stablecoin, USDCX. The duo weighs in on the future of Web3 and reflects on the surprising stance of the teachers union against a key market structure bill. They also share insights on recent fundraising successes and the challenges posed by oracle mishaps in prediction markets.
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Speculation Fuels And Harms Crypto
- Speculation is an inevitable negative externality of financial innovation but can have constructive side effects.
- Crypto's speculative cycles fund infrastructure and experiments that might otherwise be underbuilt.
Regulation Shapes Which Crypto Ideas Get Funded
- Regulatory ambiguity has starved ambitious projects while enabling offshore degen activity.
- Blocked clarity pushed capital toward meme coins and speculative launches, not foundational infrastructure.
Web3's Promise Is Still Intact
- Web3's core promise—true digital ownership—remains valid despite many failed experiments.
- Technical immaturity (wallet UX, speed) explains many early social and identity failures, not necessarily the idea's invalidity.
