Matt and Nic return for a big week of news and deals. In this episode: 

• Has there been a vibe shift? 
• Sen Tillis and Hickenlooper introduce the PROOF Act
• Is there a lack of crypto-native auditors? 
• Liz Warren’s plan to interfere with crypto audits 
• What’s going on with the WSJ, Warren’s letter, and Hamas’ crypto donations? 
• The WSJ is refusing to update their claims 
• ETF momentum is picking up 
• What explains the move in Bitcoin this week? 
• SBF is going to testify 

Content mentioned: 

• Sen. Tillis’ office, The PROOF Act introduced
• Jeff John Roberts in Fortune, The Wall Street Journal and Liz Warren double down on the Hamas crypto canard
• Nic’s WSJ/Hamas bounty campaign
• Elliptic, Setting the record straight on crypto crowdfunding by Hamas
• Elizabeth Warren letter to the White House

Check out this episode!

Nic travels to Bermuda to sit down with the Premier, Hon. E. David Burt to discuss digital asset policy and the emerging crypto ecosystem on the island. In this episode:

• The origins of the Digital Asset Regulation in Bermuda
• Catalysts that have led crypto firms to take Bermuda seriously as a domicile
• Premier Burt’s evangelization of Bermuda regulation on the crypto circuit
• Why Bermuda is a good place for a crypto firm to do business
• The “bermuda triangle” (government, industry, and regulator)
• How Bermuda straddles the risk of digital assets with the potential for innovation
• How the Premier aims to incorporate local residents into the tech industry here
• What the Premier is happy about regarding Bermuda’s regulatory strategy for digital assets
• Which sectors within the crypto space the Premier is focusing on at the moment How Bermuda is situated relative to other financial regulators
• Premier Burt’s view on regulatory passporting

Thanks to Penrose Partners.

Check out this episode!

Mike Higgins of Hidden Road joins the show. In this episode we discuss:

• Mike’s career and the path to joining Hidden Road
• Overview of Hidden Road and the prime brokerage category
• The market structure for digital asset trading and settlement
• The launch of Route28 and the value proposition for institutional customers
• The regulatory landscape and the path that Hidden Road has pursued for licensing across the world
• Institutional adoption in 2024

Further reading: 

• Learn more about Hidden Road 
• Learn more about Route28

Check out this episode!

Amanda Tuminelli of The DeFi Education Fund joins the podcast. In this episode we discuss:

• Amanda’s background and path to joining The DeFi Education Fund
• The IRS “broker” rulemaking process and its potential impact on DeFi
• The SEC’s “Exchange” rulemaking process
• DEF’s amicus briefs on SEC vs. Coinbase
• Patent trolls in the DeFi ecosystem

Links to content discussed on this episode:

• protectdefi.org
• IPR Petition (Patent Case)
• “Exchange” Rulemaking Comment Letter
•  DEF’s Amicus Brief in SEC v. Coinbase

To learn more about The DeFi Education Fund visit: defieducationfund.org/

Check out this episode!

Matt and Nic return for another week of news and deals. In this episode: 

• The Cointelegraph SNAFU 
• The NYAG sues Gemini, Genesis, and DCG 
• The FTX trial isn’t going well for Sam 
• The latest with FTX clawbacks
• Elon files an amicus brief in a case against SEC
• Sen Warren’s latest anti-crypto letter 
• Chainalysis debunks the WSJ’s false narrative about crypto financing for Hamas
• Larry Fink supports Bitcoin now 
• We profile the Silk Road hacker

Content mentioned in this episode: 

• Nic interview with Bermuda Premier David Burt
• Chainalysis, Correcting the Record: Inaccurate Methodologies for Estimating Cryptocurrency’s Role in Terrorism Financing
• CNBC, The secret life of Jimmy Zhong, who stole – and lost – more than $3 billion

Sponsor notes: 

• Coin Metrics STATE OF THE NETWORK — Exploring Supply Transparency 
• In this joint report by Coin Metrics & Bitcoin Suisse, we explore token supply and ownership dynamics in digital asset markets

Check out this episode!

Matt and Nic are back for another week of news and deals. In this episode: 

• Holland versus the Netherlands 
• The end of Pax Americana
• Ditching the ‘stablecoin’ term
• Why synthetic USD is not the next Luna
• Caroline Ellison testifies
• SBF wanted to be president
• How Teneo worked with Singapore to apprehend Su Zhu
• Will criminal charges ever be leveled against the 3AC principals?
• Lightning is getting more efficient 

Content mentioned in the episode: 

• Nic and Martin join the Empire podcast
• Do we need a TARP 2.0? 

Sponsor notes: 

• Coin Metrics STATE OF THE NETWORK — Q3 2023 Wrap-Up
• In Coin Metrics State of the Network Issue 228, we set out to analyze USDC’s supply loss and its impact on Circle

Check out this episode!

Guy Young, the founder and CEO of Ethena, joins the show to talk crypto-backed stablecoins. 

• How Ethena began with an Arthur Hayes blog post
• The origins of synthetic stablecoins on Bitmex
• The difference between Hayes’ Nakadollar and the Ethena design
• Why synthetic stablecoins have failed in the past and how Ethena addresses this
• How staked ETH as the underlying collateral opens up a new design space
• How Ethena mitigates their exposure to exchanges with off-exchange custody
• Guy’s backstory and entrance into crypto
• Why the circumstances are favorable for the success of a synthetic stable today
• Why the short leg of the Ethena position has to rely on CeFi for now
• Where the yield from ETH positive funding ultimately comes from
• Limits to scale on Ethena on the short leg of the trade and ETH staking
• Guy’s explanation for where the yield from being long ETH comes from
• Correlation dynamics between the ETH yield and the funding rate
• Why it’s important that crypto yields are somewhat negatively correlated with tradfi yields
• What protects the system when funding flips negative?
• How the system can react to constraints in ETH funding and ETH staking
• The possibility of adding Bitcoin as a collateral type
• Why Ethena distinguished the stablecoin and the yield-bearing component
• Rebasing versus accruing yield tokens
• How they think about different stETH derivatives
• Ethena versus stETH-backed overcollat stablecoins
• Why the supply of stablecoins is shrinking
• Will major stablecoin issuers become interest bearing?
• Ethena’s regulatory strategy
• The BUSD security analysis from the SEC and how interest bearing affects that
• Why end users deserve yield in exchange for taking on the counterparty risk of holding a stable
• Why Guy is excited by Paypal USD
• Guy’s prediction for stablecoin interest-bearing market cap

Further reading:

• Arthur Hayes, Dust on Crust

Check out this episode!

Matt and Nic are back for another week of news and deals. In this episode: 

• OTB gets some critical feedback
• The boys cover Walter Isaacson’s Elon Musk biography
• Is Elon going to turn around the Twitter acquisition?
• Bourgeous capitalism
• We review Lewis’ Going Infinite
• SBF was tungsten pilled
• Su Zhu is jailed for contempt of court in Singapore
• Is FTX solvent again thanks to Anthropic?
• Does ETH futs ETFs mean that ETH isn’t a security?
• Bharat Ramamurti, one of the architects of OCP 2.0, leaves the White House
• The Economist covers the Bitcoin lab leak hypothesis
• Coinbase gets a license in Singapore

Content mentioned in this episode:

• The Economist, Did bitcoin leak from an American spy lab?

Sponsor notes:

• Coin Metrics STATE OF THE NETWORK — Q3 2023 Wrap-Up
• In Coin Metrics State of the Network Issue 227, we take a data-driven look at the most important events that impacted the digital assets industry from Q3 2023

Check out this episode!

Matt Hougan, the Chief Investment Officer of Bitwise Asset Management joins the show. In this episode we discuss:

• The SEC’s approval of Ethereum Futures ETFs
• Bitwise’s launch of AETH, The Bitwise Ethereum Strategy ETF and BTOP, the Bitwise Bitcoin and Ether Equal Weight Strategy ETF.
• The current state of play as it relates to Bitcoin spot ETF filings.
• The SEC’s approach and posture given the Grayscale court case.
• The current lay of the land in the institutional market as it relates to digital asset products.

To learn more about Bitwise visit bitwiseinvestments.com

Check out this episode!

David Phelps is the co-founder and CEO of jokerace and a prolific writer. He joins the podcast to discuss:

•  Why tokens are not optimal for effective governance
•  Alternative ways to incentivize users and distribute decision making power
•  How we solve for retaining users versus just attracting them
•  Composability and evolving from user generated content to user generated apps

Check out this episode!

Matt and Nic return for deals and news. In this episode: 

• Is AI going to cause unemployment for IB associates?
• Blockchain based sneakers
• Tungsten business cards
• What’s happening with OTB merch?
• Nic’s Vespa catastrophe
• Gensler’s HSFC hearing
• How Gensler is the Tonya Harding of crypto
• Made up airlines
• What’s going on with Huobi?
• FTX trial starts next week

Content mentioned in this episode:

• Merch: onthebrink.shop
• Eric Hess, Bridging Policy and Practice: A Pragmatic Approach to Decentralized Finance, Risk, and Regulation
• Nic’s Token 2049 talk

Check out this episode!

Matt and Nic return for news and deals. In this episode: 

• We recap the conferences 
• Nic’s Columbia lecture snafu
• The Bitcoin security budget debate 
• One theory for what might provide Bitcoin with long term security
• FTX sues Joseph Bankman and Barbara Fried
• Tether has resumed their lending operations
• Did SBF’s parents make him do it?  
• HK is creating stablecoin legislation
• USA vs Singapore

Content mentioned: 

• David Morris tweetstorm on SBF parents
• Evanston Capital, Investor Participation Trends in Blockchain VC
• Anatoly Yakovenko, Solana co-founder: ‘To keep the next great American founder in America, Congress must regulate crypto. But first lawmakers should learn how it works’

Sponsor notes: 

• Coin Metrics STATE OF THE NETWORK — A Glimpse into Coinbase through Coin Metrics’ Data
• In Coin Metrics State of the Network Issue 225, we highlight pivotal data underscoring Coinbase’s current market position

Check out this episode!

Check out this episode!

Matt and Nic are back for another week of news and deals. In this episode. 

• We review Singapore and Token 2049
• Singapore food reviews
• Is crypto pivoting to Asia?
• Singapore bans the 3ac boys from the Securities industry for 9 years
• The offshoring of dollar stablecoins
• Stablecoins are becoming interest bearing
• Fortress is hacked and acquired by Ripple
• SEC versus Stoner Cats
• Sentiment is turning against John Ray III
• We review Arthur Hayes’ party in Singapore
• How involved was Joe Bankman in FTX?
• Genesis is ceasing trading operations
• 19 hour flights

Content mentioned in this episode:

Nic’s Token 2049 Keynote (slides)

Bloomberg, How Sam Bankman-Fried’s Elite Parents Enabled His Crypto Empire

Check out this episode!

Peter Johnson, co-head of Venture at Brevan Howard Digital, returns to the show to talk about his latest theses on stablecoins. In this episode: 

• The origins of Peter’s interest in stables 
• We review Peter’s prior stablecoin predictions 
• USDC versus USDT market share trends 
• Peter’s main takeaways from the Relentless Rise paper
• Stablecoin usage on BSC and TRON 
• Peter’s views on PYUSD
• The emergence of interest-bearing stablecoins 
• How synthetic USD stablecoins might work
• Stablecoin comparisons to the Eurodollar market
• We make some predictions 

Further reading: 

• BH Digital, The Relentless Rise of Stablecoins

Check out this episode!

Check out this episode!

Eric Wall is a cryptocurrency researcher, analyst, critic, and investor. In this episode we sit down to discuss the creation and premise of his new project, the Orb. 

• What is the orb?
• How did the orb come about?
• How to bet on the human capital and reputational growth of individuals
• Why previous social tokens failed
• What does the orb entitle you to?
• Why the orb is not a security
• Harberger taxes and their implementations so far
• How harberger taxes create better allocative efficiency
• Harberger taxes and domain names
• The problem with social tokens as a way to invest in people
• Why an obligation to a single holder is better than one to many holders
• Eric’s feud with the Hex community and how the rb could solve this
• Possible orb failure modes
• Possible AI issues with the orb
• Why orb issuers have an incentive to provide value to holders
• The possible role of orbs in venture capital
• How the orb could disrupt expert networks
• How to parameterize the orb
• The significance of the orb animations

Further reading:

• Orb.land

Check out this episode!

Matt and Nic return for another week of news and deals. In this episode: 

• Is Ethereum going through a ‘bullish unlock’?
• Did the SEC decicion around staking help decentralize Ethereum?
• What is a commodity?
• We pitch futures for restaurant bookings
• The problem with ‘phygitals’
• What’s going on with DWF labs?
• Twitter users will be able to trade crypto through the app
• Is FedNow a CBDC?
• Does FedNow introduce risks to the banking system?
• A relaunch of FTX gets more likely
• How the DOJ caught the Silk Road hacker
• Could a CBDC emerge which is actually private?
• We roll out the Tap In or Tap Out segment
• Is France going to become a crypto haven?
• The NYT article on Bitcoin mining
• Did the NYT doctor pictures to make Bitcoin miners look more polluting than they are?
• CIV is hiring

Sponsor notes: 

• Subscribe to the Coin Metrics State of the Network newsletter: this week, Ethereum’s Shanghai redemption

Check out this episode!

Dennison Bertram, the co-founder and CEO of Tally, returns to the show. In this episode we discuss:

• Dennison’s career in the crypto industry from exchange founder to founding Tally.
• How to frame DAOs from a total addressable market perspective.
• What types of companies and industry categories would be better served as DAOs.
• Best practices in managing DAOs.
• The regulatory landscape for DAOs and how state LLC regulations could factor into future legislation.
• How Tally works with leading DAOs.

To learn more about Tally visit their website and follow Dennison on Twitter.

See also: 

• On The Brink, Dennison Bertram and Raf Solari on Reforming DeFi Governance (March 2021)

Check out this episode!

Matt and Nic return for another week of news and deals. In this episode: 

• What are the prospects for dealing with OCP 2.0?
• Creditors are considering relaunching FTX int’l
• The boundary between being a visionary and a scammer
• Nic’s feud against NPR
• What’s the deal with the bug eating meme?
• Are lobsters bugs?
• What happened to the tungsten cube NFTs?
• Singapore banks might be warming up to crypto
• Hong Kong is red hot as a crypto zone
• A new paper alleges the Fed has overstepped its discretionary authority
• The Case for Banning Crypto
• The US treasury report on DeFi protocols
• Apple embeds the Bitcoin whitepaper on all laptops
• Nic’s UFC picks and Matt’s golf picks

Content mentioned in the episode:

• Julie Hill, From Cannabis to Crypto: Federal Reserve Discretion in Payments
• Politico, U.S. Diplomat to Washington: You’re Becoming Obsolete in One Big Area of Tech Policy
• US Treasury, Illicit Finance Risk Assessment of Decentralized Finance
• Kathleen Breitman in Fortune, Ethereum, Arbitrum, and why L2 solutions are such a mess

Check out this episode!