The regulatory landscape around cryptocurrencies is changing stateside as the SEC targets major players in the web3 world, promising positive action to change everything.
This week at Chain Reaction, we sit down with David Natch. Nage is the head of Arca, overseeing their early stage fund, with a primary focus on blockchain and digital assets. In this week’s podcast, we delve into the many crypto topics impacting the web3 venture capital world, including the battle against the blockchain gaming industry and the SEC’s renewed enthusiasm for regulation following this week’s investigative report on Coinbase.
You can listen to the full interview below.
During our conversation, Nage noted that the recent downturn has provided a lot of learning for players in the space, but noted that some of the biggest explosions have disproportionately impacted retail investors. “I hope we as a society don’t have to learn from failure, but it seems like we do learn from failure, and that’s how we grow and thrive,” Nage said.
Nage said that while regulators are pushing for investigations, many VCs simply hope they can provide startups with more guidance and avenues to operate within the law, while seizing opportunities native to cryptocurrencies. Due to a lack of guidance, many VC-backed startups are sitting on the sidelines before giving up on their tokens, Nage told us.
“Many of these founders understand that tokens can provide clear utility for the distribution and decentralization of corporate power, and can provide a lot of positive economic incentives for those who participate, but in the absence of regulatory clarity, they are Pushing this is guaranteed indefinitely,” Nage said. “So I think it could be really useful to actually have that clarity for the thousands of founders who are looking to innovate in the space.”
While Nage had some complaints about the evolving regulatory environment, he also noted that things are still moving faster than he expected. “think [back] During the 2018 crypto winter, senators will set certain policies on digital assets [today] Just one leap and your mind will explode, which is awesome. “