Unchained

In this live recording of a panel discussion at the CoinAlts Fund Symposium, Marco Santori, president and chief legal officer of Blockchain, managing director at Grayscale Investments, and Barbara Minuzzi, cofounder and managing partner of Ausum Ventures take stock of the 2017 year and discuss a range of trends they're seeing in the industry. Santori describes what the ICO wave was like from his seat as one of the most in-demand lawyers for ICOs, and why he doesn't actually think that securities (such as a SAFT) can later transform into something that is a non-security. He also talks about how big corporations are thinking about use blockchain technology -- and why we haven't yet seen much activity on that front in the market. We talk about the current clouds over the industry -- custody and regulation -- and Sonnenshein explains why investors choose Grayscale's investment products, such as the Bitcoin Investment Trust, rather that investing in the coin directly, and 

Blockchain.info: https://blockchain.info

Grayscale Investments: https://grayscale.co

Ausum Ventures: https://www.ausum.vc

Thank you to the CoinAlts Fund Symposium for hosting the panel: https://www.coinaltsfundsymposium.com

For more on regulatory issues, check out these past episodes:

Perianne Boring and Amy Kim of the Chamber of Digital Commerce on crypto regulation: http://unchainedpodcast.co/the-chamber-of-digital-commerces-perianne-boring-and-amy-kim-on-why-us-crypto-regulation-is-complicated-and-confusing

The Tax Rules That Have Crypto Investors Aghast: http://unchainedpodcast.co/the-tax-rules-that-have-crypto-users-aghast

How Crypto and Blockchain Technology Should Be Regulated: http://unchainedpodcast.co/how-crypto-and-blockchain-technology-should-be-regulated

Jerry Brito and Peter Van Valkenburgh of Coin Center: http://unchainedpodcast.co/how-coin-center-is-helping-define-the-big-fuzzy-gray-area-of-blockchain-and-cryptocurrency-law

Caitlin Long on How 'Utility Tokens' Are Now Legal in Wyoming: http://unconfirmed.libsyn.com/caitlin-long-on-how-utility-tokens-are-now-legal-in-wyoming

Former DOJ Prosecutor Kathryn Haun on What the SEC Subpoenas and FinCen Letter Likely Mean: http://unconfirmed.libsyn.com/sxsw-episode-former-doj-prosecutor-kathryn-haun-on-what-the-sec-subpoenas-and-fincen-letter-likely-mean

For more on custody issues, check out the episode with Mike Belshe of BitGo and its acquisition of Kingdom Trust: http://unchainedpodcast.co/mike-belshe-on-what-bitgos-kingdom-trust-acquisition-means-for-crypto-and-how-security-will-develop-in-the-future

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If U.S. crypto regulation seems incredibly convoluted, this is the episode for you. Perianne Boring, the founder and president of the Chamber of Digital Commerce, and its global policy director and general counsel Amy Kim, discuss why U.S. regulation calls crypto assets currency, property, commodities and securities, and how that results in agencies enforcing their own laws without a higher level understanding of the technology. They also discuss what they call the "failure" of the regulatory regime that requires certain types of crypto companies to get licenses from 53 different states and territories and why no firms have so far even gotten close. They also advocate for the technology to be taxed more like currency than property, claiming that the current classification stifles usage of cryptocurrencies as currencies. We also dive into juicy questions like whether ether, which was sold in what we would now call an initial coin offering, is a security and what self-regulation of the crypto space could look like.

Chamber of Digital Commerce: https://digitalchamber.org/

Token Alliance: https://digitalchamber.org/initiatives/token-alliance/

Previous episodes on Unchained and Unconfirmed that touched on regulation:

Live from SXSW: Michael Casey and Paul Vigna, Co-Authors of The Truth Machine, on Why the SEC Has Issued Subpoenas to ICOs

http://unchainedpodcast.co/live-from-sxsw-michael-casey-and-paul-vigna-co-authors-of-the-truth-machine-on-why-the-sec-has-issued-subpoenas-to-icos

Caitlin Long on How 'Utility Tokens' Are Now Legal In Wyoming

http://unconfirmed.libsyn.com/caitlin-long-on-how-utility-tokens-are-now-legal-in-wyoming

SXSW Episode: Former DOJ Prosecutor Kathryn Haun on What the SEC Subpoenas and FinCen Letter Likely Mean

http://unconfirmed.libsyn.com/sxsw-episode-former-doj-prosecutor-kathryn-haun-on-what-the-sec-subpoenas-and-fincen-letter-likely-mean

The Tax Rules That Have Crypto Users Aghast

http://unchainedpodcast.co/the-tax-rules-that-have-crypto-users-aghast

How Crypto And Blockchain Technology Should Be Regulated

http://unchainedpodcast.co/how-crypto-and-blockchain-technology-should-be-regulated

Is The IRS Justified In Demanding Information On Millions Of Bitcoin Users?

http://unchainedpodcast.co/is-the-irs-justified-in-demanding-information-on-millions-of-bitcoin-users

Federal Prosecutor Kathryn Haun On How Criminals Use Bitcoin -- And How She Catches Them: http://unchainedpodcast.co/federal-prosecutor-kathryn-haun-on-how-criminals-use-bitcoin-and-how-she-catches-them

How Coin Center Is Helping Define The 'Big Fuzzy Gray Area' Of Blockchain And Cryptocurrency Law

http://unchainedpodcast.co/how-coin-center-is-helping-define-the-big-fuzzy-gray-area-of-blockchain-and-cryptocurrency-law

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Through Inforum at the Commonwealth Club, I recently moderated a sold-out discussion on the basics of blockchain technology and cryptocurrency. My guest was Kathryn Haun, a former federal prosecutor who is now teaching a class on cryptocurrency at the Stanford Graduate School of Business and serves on the boards of Coinbase and Hacker One. We go through all the elementary questions most newbies have: what is bitcoin, what is a blockchain, what is Ethereum, what is mining, etc., and give real examples of how this technology could be used. I think it's a perfect primer for people new to crypto -- whether you're listening for tips on how to explain these concepts to your friends and family, or you're a newbie yourself and want a dead-simple explainer. This is the first in a series of talks with Inforum on blockchain and crypto, so stay tuned for future events.

Kathryn Haun: https://www.gsb.stanford.edu/faculty-research/faculty/kathryn-haun

Inforum at the Commonwealth Club: http://inforumsf.org/

http://inforumsf.org/upcoming-events/2018/4/12/blockchain-and-cryptocurrency-the-basics

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Valery Vavilov and George Kikvadze of Bitcoin mining and blockchain software company Bitfury discuss why the firm has partnered with the publicly traded Hut 8, how it plans to branch out into mining other crypto assets, and how it chooses where to open mining operations. They also explain how low the bitcoin price can go before mining will be unprofitable for them, what their new blockchain analytics tools Crystal can do, and why they often choose people outside the blockchain/crypto industry to attend the Blockchain Summit they co-host on Richard Branson's Necker Island. Vavilov also tells the story of a childhood experience that has influenced Bitfury's decision to work so much with governments and regulators, and he and Kikvadze describe the company's new blockchain analytics tool, Crystal, plus its hand in launching other blockchain-and-government-focused organizations such as the Blockchain Alliance and the Blockchain Trust Accelerator.

Bitfury: http://bitfury.com/

Bitfury's origin story as told by Bill Tai: http://unchainedpodcast.co/maitai-globals-bill-tai-on-why-blockchain-is-the-6th-wave-of-technology 

Hut 8: https://www.hut8mining.com/

Exonum: https://exonum.com/

Necker Blockchain Summit: http://www.neckerblockchainsummit.com/

Blockchain Alliance: http://blockchainalliance.org/

Blockchain Alliance on Unchained: 

http://unchainedpodcast.co/how-the-blockchain-alliance-helps-law-enforcement-with-bitcoin-crime-and-developments-like-the-dao

Crystal: https://crystalblockchain.com/

Blockchain Trust Accelerator: https://trustaccelerator.org/

Pilot with Coca-Cola and State Department: https://www.reuters.com/article/us-blockchain-coca-cola-labor/coca-cola-u-s-state-dept-to-use-blockchain-to-combat-forced-labor-idUSKCN1GS2PY

Emercoin: https://emercoin.com/en

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In an intermittent series on cryptoeconomics, Olaf Carlson-Wee and Ryan Zurrer of crypto hedge fund Polychain Capital describe what cryptoeconomics is, what goals it typically helps networks accomplish and what behaviors token systems might someday incentivize. We discuss when cryptoeconomic models don't make sense, how the type of consensus algorithms a blockchain chooses can affect behavior in that system and which consensus mechanisms excite them now. We also dive into whether or not it's desirable for a cryptoeconomic system to depend on a small number of knowledgeable participants, how to manage on-chain governance so networks don't vote themselves into a "black hole," and what disciplines are helpful in designing smart cryptoeconomic systems.

Polychain Capital http://polychain.capital/

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Zooko Wilcox, the founder and CEO of the Zcash company, explains why he wanted to create the privacy coin Zcash, why he believes privacy is essential to decentralization, and how encryption is the way censorship-resistance can be created on a technical level. We talk about the revelation that the NSA was targeting Bitcoin users by gathering details on their devices and how even Zcash users could be targeted the same way, but why Zooko believes most people are more concerned about other threats. We also delve into the Facebook/Cambridge Analytics news and why people don't see to care about privacy and why so few people choose to transact privately in Zcash. He also describes he would feel if he knew that criminals were using Zcash for horrible crimes.

Zcash company: https://z.cash/

Matthew Green's bitter tweet about Cryptokitties raising $12 million when he had to beg VCs to give Zcash a fraction of that amount: https://twitter.com/matthew_d_green/status/976298627759972353

The transaction that Zooko and I dissect during the episode: https://explorer.zcha.in/transactions/eed1d3993e52863fd33f9961672a22d016ca2a63f1e452b7d27fc41f5a2f2664

The Intercept article about the NSA tracking Bitcoin users: https://theintercept.com/2018/03/20/the-nsa-worked-to-track-down-bitcoin-users-snowden-documents-reveal/

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Arianna Simpson, managing partner of investment firm Autonomous Partners, discusses this week's news that Cambridge Analytica had used data from Facebook to perhaps manipulate the 2016 election and whether that could create an opening for blockchain-based decentralized social networks. We also cover the announcement that Andreessen Horowitz, Union Square Ventures and top individual investors invested $12 million in Cryptokitties and why Simpson thinks the area of digital collectibles could take off.

The Facebook/Cambridge Analytica story: https://www.nytimes.com/2018/03/17/us/politics/cambridge-analytica-trump-campaign.html

Cryptokitties: https://www.coindesk.com/a16z-leads-12-million-funding-for-ethereum-app-cryptokitties/

Why Arianna isn't worried about the downturn: https://www.marketwatch.com/story/the-smart-money-isnt-worried-about-the-bitcoin-selloff-2018-03-19?siteid=rss

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Mike Belshe, the founder and CEO of BitGo, talks about one of the biggest problems facing crypto today: security. We discuss some of the ways BitGo has resolved this issue, whether that still leads to single points of failure, and what the company's recent acquisition of Kingdom Trust (a "qualified custodian" as defined by the 1940 Investment Company Act) means for the space -- hint, it may have to do with ETFs. We also discuss the recent violent crimes against people in crypto and how everyday people should go about protecting their funds.

Mike Belshe: https://twitter.com/mikebelshe

BitGo: https://www.bitgo.com/

A Wired article on the BitGo acquisition of Kingdom Trust: https://www.wired.com/story/why-a-tiny-kentucky-firm-rules-a-corner-of-the-crypto-market/

New York Times article on crimes against crypto holders: https://www.nytimes.com/2018/02/18/technology/virtual-currency-extortion.html

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At the Founders Organization's Initial Taco Offering, an unofficial SXSW event, the co-authors of the recently released Truth Machine, talked about a wide range of regulatory issues from what the SEC subpoenas mean to whether or not the SEC is investigating the SAFT to whether or not the regulators should address crypto on a federal level. We also discuss central bank cryptocurrencies, how the dollar could be knocked off world reserve currency status, rogue governments issuing cryptocurrencies, the Telegram ICO, ways in which blockchain can be applied to problems such as climate change and how the media is covering crypto.

The Truth Machine: https://us.macmillan.com/books/9781250304964

Michael Casey: http://www.michaeljcasey.com/

Paul Vigna: https://twitter.com/paulvigna

Paul's article on SEC subpoenas: https://www.wsj.com/articles/sec-launches-cryptocurrency-probe-1519856266

Michael's essay on China's desire to end the dollar's global dominance: https://www.coindesk.com/political-china-hates-bitcoin-loves-blockchain/

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Wyoming now has five blockchain-specific laws. Caitlin Long, cofounder of the Wyoming Blockchain Coalition, describes what these laws are, what they mean, and how our least populous state became a crypto leader. The former chairman and president of Symbiont explains what this could mean for any project that aims to launch a utility token, whether or not ICOs held in Wyoming would only be available to Wyoming residents, and what big issue she thinks remains for the SEC to address.

Caitlin Long: https://www.linkedin.com/in/caitlin-long-/

To read the laws: https://legiscan.com/WY/bill/HB0070/2018

An op-ed Caitlin co-authored with WY House Rep. Tyler Lindholm: https://www.coindesk.com/haven-blockchain-case-wyoming/

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