1/ Citadel got DeFi wrong.

Today, DEF, @a16z, @DigitalChamber, @orca_so, @theblockprof, & @UniswapFND wrote to @SECGov in response to @citsecurities' letter misrepresenting how DeFi technology works.

Why this group? Citadel blatantly miscited us, and we feel obligated to correct the record. 2/ Context: on Dec 2, Citadel Securities sent a letter to the SEC re: “Tokenized U.S. Equity Securities & DeFi Trading Protocols.”

As we explain, Citadel “baselessly encourages the SEC to regulate decentralized finance (‘DeFi’) technologies, developers, and others, as traditional SEC-registered intermediaries.” Citadel alleges that everything from validators to self-custody wallet providers to “smart contract developers” are “intermediaries” like securities brokers.

1/ Last night, we filed our response to the CFTC’s filing from last week in the Ooki DAO matter, specifically concerning their motion for alternative service.

drive.google.com/file/d/1Czh3wn… 2/ We argue that the CFTC “cannot have it both ways” and that to “lawfully effect service consistent with its Complaint’s theory, the Commission must demonstrate both (i) that its method of service is reasonably calculated to reach those specific voting token holders and…

1/ Over the next few weeks, we’ll publish a series of posts to inform nascent policy/regulatory/legal debates related to the DeFi ecosystem.

First up: An overview of the current anti-money laundering/illicit finance situation:

medium.com/@defieducation… 2/ Understandably, govts have a keen interest in stopping illicit financial activity. No one wants criminals to get away with their loot.

But a common misconception of the DeFi ecosystem is that it is somehow out of compliance w/ the US’s AML/CFT framework. This is not true.

1/ Newsletter #3, 2/18/22

-Warren Davidson + Keep Your Coins
-Stablecoin hearing + what Sinema said
-BlockFi’s SEC path

defieducationfund.substack.com/p/kyc-act-sena… 2/ This week, pro-crypto congressman Warren Davidson intro’ed the Keep Your Coins Act.

What would this bill do and what does it mean for self-custody in the U.S.?

congress.gov/bill/117th-con…

1/What is DeFi? It’s a question that still stumps (or frightens) many in our govt, legacy financial institutions, and the general population.

To help explain the ecosystem + ease those concerns, we’re going to post a 4-part “DeFi 101” course here over the next week.

Part 1 2/ Thanks to @MattBartlett__, whose DEF-funded report on the origins and spread of DeFi is the basis of this overview.

His full report can be found here: drive.google.com/file/d/1Cx-n-p…

1/ How do Americans think about crypto + DeFi?

As much as the industry is driven by devs, investors & founders, the question of how “normal” ppl will or won’t use these systems & protocols is vital.

@future_majority's DEF-funded poll turned up some interesting answers... 2/ First, the good news. 93% of the 1,054 ppl surveyed have heard of cryptocurrency. That’s high.

Even DeFi is relatively well known, with 48% of respondents noting they’ve heard the term. DeFi is young and can be hard to understand; in that context, this is also a high number.