The regulatory environment surrounding crypto is shifting to the states as the SEC targets major players in the web3 world and promises to shake things up as usual with aggressive action.
This week on Chain Reaction we sat down with David Nage. Nage is a Principal at Arca overseeing their early stage fund with a primary focus on blockchain and digital assets. In this week’s podcast, we delved into a myriad of crypto topics impacting the world of venture capital on the web, including the battle with the blockchain gaming industry and renewed regulatory fervor from the SEC following its report. this week on an investigation into Coinbase.
You can listen to the full interview below.
In our conversation, Nage noted that the recent downturn has already taught a lot for players in the space, but notes that some of the biggest explosions have disproportionately impacted retail investors. “I wish we as a society didn’t have to learn by failure, but it seems we really learn by failure and that’s how we grow and thrive,” says Nage.
Nage says that while regulatory authorities are pushing for investigations, many venture capitalists only hope they can provide more guidance and avenues for early stage players to operate within legal limits while embracing opportunities inherent in crypto. It’s a lack of guidance that has prompted many venture-backed startups to wait and see before dropping their own token, Nage tells us.
“Many of these founders understand that a token can provide a clear utility for dividing and decentralizing the authority of the company and that it can provide many positive economic incentives for those who participate, but without regulatory clarity they are pushing that in.” an indefinite injunction,” says Nage. “So I think it can be really helpful to have that clarity for the thousands of founders looking to innovate in the space.”
While Nage has some complaints about the evolution of the regulatory landscape, he also notes that things have still moved faster than he expected. “Think [back] in crypto winter of 2018 that senators would design certain policies regarding digital assets [today] is just a leap of faith and your mind just blows, it’s amazing.”
You can hear more of Nage’s interview by listening to our latest episode. Subscribe to Chain Reaction on Apple, Spotify, or your alternative podcast platform of choice to keep us updated every week.