SUPPORT REGCRYPTO

“I remember in college, my friend used to go to, like, the tanning beds, and I would always say, like, guys, this is really bad for your skin. Don't do that. You know? And, of course, I was, like, the mom of the group. And they were like, well, by the time I get cancer, there's gonna be a cure for it. And I just think that, like, we can excuse so much behavior by saying, like, well, someone's gonna solve this problem in the future.”

“Well and it is interesting. You you reference this, Jesse, but they named 12 launch partners. And 11 of them are, like, tech infrastructure companies, and then there's JPMorgan. So candidly, if I were TradFi, if I were Citi, I might be kind of pissed, frankly, especially because there's only one TradFi representation. But we'll see if crypto gets invited to the barbecue. You know? But maybe not a barbecue. That's a bad metaphor. To the party to the party where we do good things for the world.”

“So Aviso's paper proposed a really clever mechanism that effectively makes Bitcoin transactions quantum resistant. And how does it do that? Like, okay. It's really complicated, but it effectively hides a brilliant hash puzzle inside Bitcoin's existing rules. So you don't need to change Bitcoin. And rather than replacing the crypto cryptographic tools that Bitcoin uses, you get security from hash functions.”

“So I think what Seal is doing is really trying to help the industry move forward towards shared standards and best practices and just more honest and transparent design decisions. DeFi security is really, really hard, and it's not binary. Right? It's it's easy, of course, to just say, oh, just be immutable. Don't have an admin key or else it's not DeFi. But it's like, okay. That's, like, five projects that has no users. So I think that's just not realistic or representative of DeFi today.”

“So, anyway, at Vanderbilt, chair Atkins announced something called RegCrypto, which is a great name, by the way. And he said he had sent it to the White House for review. So what what is the rule? Right? So there hasn't been a lot disclosed about it, but it sounds like what it's gonna do is create a workable regime for crypto fundraising through a few safe harbors, which include things like early stage crypto projects get up to four years of breathing room. There's a time limited exemption from full SEC registration, And the idea is that it's designed to let networks decentralize before being regulated like full on securities.”

“What Mythos appears to have done is found cracks in those foundations that have been hiding for decades, as we said. These foundational tools have been tested 5,000,000 plus times. Right? And I guess they needed 6,000,000 because the foundations may be broken now. And so for anyone who's done a remodel, Catherine, I know you've talked about yours, or me watch HGTV, you sorta know that, like, foundation cracks are very dangerous and can screw up the entire house and the entire system we've been built up. And it's not just finding old bugs. Like, we've talked about that a little bit. It's also that the model is making exploits and then covering its tracks secretly to hope that nobody finds it.”

“And standard Bitcoin transactions rely on a type of cryptography called ECDSA, and I'm not even gonna define that. We're not gonna go to that level of depth. And that's basically based on the fact that it's really hard to solve certain math problems on elliptical curves, so it's based on the hardness. But a sufficiently powerful quantum computer running this mathematical thing called Shor's algorithm can solve these problems, meaning someone can forge Bitcoin signatures and steal all of the Bitcoin.”

“Crazier about this whole thing and maybe even more terrifying is to have this all happen in the juxtaposition of what's happening with Anthropic and the DOD right now. They wanna be called DoW, but I'm sticking with DOD. So, obviously, the US government, unclear whether they're also doing it because there's a lot of reports about what's happening with the Iran war and AI tech, but they're pulling anthropic out of all the systems and of all contractors to the government. And let's say that this tool is the most important dangerous potential cybersecurity tool of all time, And the government is specifically saying, no. We don't want it because we don't like that you're not putting our restrictions on it. And so that is sort of crazy too because now is it going to be the case that this private company has much more powerful capabilities than our own national security realm?”

“So, basically, if you build an interface and follow very specific rules advanced in this guidance, you can sleep at night and not be worried, that someone's gonna come and say you should have registered as a broker dealer. The SEC has been crazy productive, as, you know, my friend David Adlerstein said in another chat, like, basically every few weeks, the SEC is flipping over another card. The other thing is this actually reminds me a little bit of the no action letter vis a vis the Phantom wallet no action letter that we saw from the CFTC a few weeks ago.”

“But from the legal perspective, what I really like about this conversation is I think we're finally at the point where everyone acknowledges that the company that issued the token cannot control the token price. Like, even if it wanted to. Like, even if x company that issued a token CEO went on crypto Twitter every day and said, like, we're we're working really hard to drive the token price up. Like, the token price wouldn't necessarily go up. And we've seen all this behavior with tokens where they act fundamentally different from equities from on a, you know, a macro perspective.”