Unchained

Congressman Tom Emmer, House Majority Whip and a vocal advocate for crypto, dives into the complexities of U.S. cryptocurrency regulation. He argues that the recent clampdown on crypto aims to disconnect it from the banking system. Emmer criticizes SEC Chair Gary Gensler, labeling him a 'bad-faith regulator.' He discusses the shifting views in Congress, the polarized approach to blockchain, and the ramifications of the FedNow system. Emmer warns that current U.S. attitudes could undermine the nation's economic power in the global crypto arena.

In this lively discussion, Laura Shin, an author and crypto journalist, joins Haseeb Qureshi, Tarun Chitra, and Tom Schmidt to dissect the Arbitrum governance crisis and its implications for decentralized organizations. They delve into the impact of the Shanghai upgrade on Ethereum staking, conversing about ETH's unique organic yield. The conversation takes a dramatic turn as they reveal the fallout from a $25 million MEV attack, exploring Ethereum's vulnerabilities while weaving in some lighthearted banter about personal choices, including haircuts!

Brian Quintenz, head of policy for a16z crypto, and Nic Carter, general partner at Castle Island Ventures, dive into the contentious relationship between the U.S. government and the crypto industry. They discuss Operation Choke Point 2.0 and its implications for banking access for crypto startups. The duo analyzes whether current regulatory actions from agencies like the SEC and CFTC threaten crypto's future, consider the impact of bank failures, and explore the long-term effects of these pressures on innovation in the sector.

Austin Campbell, a Columbia Business School professor and managing partner at Zero Knowledge Consulting, dives deep into the CFTC's allegations against Binance and their implications for the crypto world. He discusses the potential for criminal charges against key figures like CEO Changpeng Zhao. Campbell highlights how this case may redefine regulatory authority over crypto assets, speculating that Coinbase could emerge as a major winner if Binance US shuts down. He also examines the legal complexities of extradition and the classification of cryptocurrencies as commodities.

Regulatory issues are mounting for Binance, with serious allegations of evading compliance and potentially trading against customers. The discussion turns to the implications of the CFTC lawsuit and how it contrasts with the SEC's stance on tokens. Do Kwon's recent arrest adds a twist, coinciding with Vitalik's crypto experiment in Montenegro. As regulatory scrutiny intensifies, questions arise about the future of major exchanges and the evolving landscape of crypto regulation in Hong Kong versus the U.S. Will Binance's troubles ripple through the crypto markets?

Dan Boneh, a Stanford professor specializing in cryptography, and Ali Yahya, a general partner at a16z crypto, unravel the intricacies of zero-knowledge proofs and their pivotal role in blockchain. They discuss the nuances of SNARKs vs. STARKs, the magic behind recursive SNARKs, and the urgent need for privacy in decentralized applications. Their conversation explores how zkEVMs are essential for Ethereum's scalability and the potential of zero-knowledge technology in various sectors, from finance to social networks, while addressing challenges such as trusted setups and regulatory compliance.

Paul Grewal, the Chief Legal Officer at Coinbase, dives into the recent SEC Wells Notice, which he deems a 'massive overreach.' He highlights the SEC's lack of clear rules for cryptocurrency and shares Coinbase's frustrations in seeking regulatory guidance. Grewal discusses the impact of the notice on the crypto landscape and the ongoing jurisdictional tug-of-war between the SEC and CFTC. He argues that this legal battle threatens crypto's future in the U.S. and emphasizes the urgent need for Congress to develop clearer regulations for blockchain technology.

Illia Polosukhin, co-founder of NEAR Protocol and former Google AI researcher, explores the fusion of AI and cryptocurrency. He discusses the recent banking crisis and its implications for crypto, weighing risks against traditional banking. Illia shares insights on how AI's evolution is revolutionizing the crypto landscape and emphasizes that "open source always wins." They even imagine a broken Tesla as the future of independent investing, showcasing the intersection of advanced tech and finance.

Caitlin Long, the founder and CEO of Custodia Bank, and Meltem Demirors, Chief Strategy Officer at CoinShares, delve into the alarming state of crypto in the U.S. They discuss the perceived attacks on crypto-friendly banks like Signature and the chilling implications of Operation Choke Point 2.0. Caitlin highlights how recent regulatory actions resemble historical precedents, while Meltem emphasizes the unique position of stablecoins. Together, they dissect the future of banking and crypto amidst looming regulatory challenges and evolving market dynamics.

In this engaging discussion, Jim Bianco, president and macro strategist at Bianco Research, sheds light on the recent bank failures that he terms a liquidity crisis rather than a solvency one. He critiques the traditional fractional reserve banking system, deeming it flawed and outdated. Bianco highlights how decentralized finance offers viable alternatives and questions the motivations behind the sudden shutdown of Signature Bank. The conversation also touches on the Federal Reserve's precarious position and the implications of rapid money movement in today's economy.