# CSX: Week 5 Notes

**Published by:** [Jayme Hoffman](https://newsletter.jaymehoffman.com/)
**Published on:** 2024-05-05
**Categories:** csx
**URL:** https://newsletter.jaymehoffman.com/csx-week-5-notes

## Content

Here are my notes from Week 5 of a16z Crypto's CSX. This week focused on Decentralization, Governance, and Policy. We also had some fun at Far(away)Con this week! Talk: Policy and Regulatory Considerations for Web3 BuildersPolicy vs. RegulatoryPolicy: Goal for laws and regulation in the futureRegulator: Enforcement of the laws and regulations that are here now (i.e. what you need to be aware of and compliant with now)a16z Crypto PhilosophyRegulation should reflect democratic valuesshouldn't: create new powers, censorshipshould: support innovative tech, freedom, right to transaction, promote competitionShould be appropriate and clearAppropriate: What is the scope of the audience intended to address? is it targeting the right risk?Regulate apps, not protocols“Don't regulate software; regulate businesses”Policy issues a16z crypto is focused onLaunching tokensA regulator path to decentralizationHow do we create rules that recommend decentralization as a benefit?How to think about DeFiStablecoins and stakingWhat they hear from policymakers?I like blockchain, but not cryptoTranslate: I like innovation, but I don't like speculationResponse: you can't have decentralization without crypto assets, world computer vs. world casinoSame activity, same risk, same rulesTranslate: political tagline, not sure they really meanResponse: see it as two questions followed by a statementCrypto is the Wild WestTranslate: I'm worried about crypto and illicit financeResponse: Comes down to dataSee State of Crypto 2023talks about the amount used in illicit financedefinitely a concern, but need to scale appropriatelyRemember about politiciansPolicymakers are extremely busy!They have to have thoughts on every major policyBooked 30min entire day every yearTheir thought often comes down to "crypto is bitcoin, FTX or defi"Where your service is offered is what mattersPeople think where you incorporate is what matters, in fact, what's most important is where you are offering services.If state, you need licenses with the state. The same is true for internationalTop questions a16z hearsSanctions questionsif moving any type of value, you have to follow sanctions lawwhether you are running a business in the US or notyou need only a little bit of touch in the US to have liabilityThink...How would a criminal in XYZ country try to take advantage?What can I do to mitigate?“Im not here to scare you and be the boogeywomen” just here to talk to you about the risk"Tax questionsWhere you need to payDo you have reporting obligationsSecurities questionsLove these questions the most: How do we design, launch, and build tokens and token ecosystemHow to interact with lawmakersReactive Often unpleasant98% of the time just looking for info in a caseReaching out because they seem to believe you may have info access toShould you get legal counsel? Sometimes.You shouldn't panic if they reach out - They are often confused about where to lookProactiveDemosconferencesschedule meetinggreat ops for them to learn and understandLegal advice on Crypto TwitterNot who you want to be following when comes to legal and building businessGood for humor and excitementOn crypto in the U.S.No question we're in a fight in the United StatesSignificant legal challengesAnything and everything is part of their regulator's jurisdictionCrypto is going to be around longer than the Chairman of the SEC.There are a lot of good parties I have faith that the courts are going to give us more clarity and info that will cause the agency to go in a different direction or scratch their head that this aggressive approach is neededTech is here to stayThe technology is here to stay. The US will get this right. The question is, will it be in one year or three to five years?a16z Crypto is fighting"Cdixon 150 meetings a year, Sriram, just as many"In those meetings, "you see their lightbulb go off"Spectrum of consumer protection/innovationAlmost always on a spectrum of consumer protection or innovationStrong protection = anti-innovationStrong innovation = anti-consumer protectionEmbracing decentralization can do bothRemember, regulation is neededProtect consumers from the casinoWhere to find Brian and Michelle online?Brian Quintenz (Head of Policy) / TwitterMichele Korver (Head of Regulatory) / TwitterLinks that came upHere are some links that came up this week. FrensFrens is a map-based crypto messaging app. The app and screenshots of it came up a ton this week due to Farcon and Far(away)Con. The Frens founders are great ❤EigenLayerEigenLayer came up a couple of times before and after their controversial airdrop. Paragraph + Mirror * KioskParagraph announced that it acquired Mirror's assets and raised $5M from USV. The previous Mirror team announced they're working on Kiosk, which looks super cool! Leveraging Farcaster for GrowthI gave dozens of builders tips on how to leverage Farcaster for growth. tl;dr be consistent, be authentic, and post from founder vs. brand account (more here)Here are the tools I use for alerts, feeds, and search. a16z decentralization and regulation links On decentralization, an overview by Miles Jennings On decentralization for builders: principles, models, how by Miles JenningsOn launching compliant tokens by Miles JenningsOn designing effective governance by Porter Smith On crypto regulations, illicit finance, and more with Michele Korver, Jai Ramaswamy, Sonal ChokshiLauncher Labs ProgressThis week was a record-breaking week! We shipped a couple of new features and lots of small tweaks. Edit an image curated from a URL or uploaded.Frameboard cast action - You can now curate to Frameboard directly from FarcasterMiss out on Farcon? No worries, there's a Frameboard for that.👋 See you next week!

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