SHILL Issue 25

token issuance, platform
registration, and stablecoins
in many jurisdictions. This
makes is hard for the industry
to move forward as securely,
and hard for institutional
players to get involved.
On the other hand, many
regulators have found it
very difficult working with
crypto companies: instead of
working collaboratively, we’ve
seen a ton of examples of
tension boiling over.
What else? Well, blockchains
are starting to scale, but
it’s not enough yet. We’re at
~50k TPS; industrial scale
applications often require
millions. And, while digital
assets hold huge promise for
payments, in practice very few
are done with them today.
So, how do we get there from
here? As we close down the
most explosive year in crypto’s
history and look forward to
2022, what does the industry
need to focus on, and get
right?
Let’s start with regulation.
The biggest thing here is to
work collaboratively on ways
to address current regulatory
gaps while allowing liquidity
to move onshore -- to the
US, and to Europe, and other
jurisdictions.
Stablecoins are maybe the
most straightforward: create
a reporting/transparency/
auditing based framework to
ensure they are backed as they
say they are: https://ftxpolicy.
com/stablecoins This would
solve 80% of the problems
while allowing stablecoins to
thrive onshore.
It’s important, while doing
so, to make sure that an
open network can grow; if
the network is restricted to
existing banks, it defeats
most of the purpose.
Second, there should be
standard markets oversight,
in a unified regime that
creates similar standards for
spot, futures, etc. And third,
a disclosure, registration,
and anti-fraud-based regime
for token issuances. https://
ftxpolicy.com/areas-forcrypto-regulation…
The goal of all of this is to
come out stronger. To emerge
with customer protection and
regulatory clarity in a way that
consumers and institutions
alike feel comfortable
interfacing with the digital
asset ecosystem.
SHILL Is1ue #25 61