Pro Crypto Senate Bill Introduced

Plus Airdrops and Web3 founder playbook

June 08, 2022

MUSHROOM ALPHA

GM. Happy Hump Day. We know today is gonna be productive because we woke up without an alarm clock. Try it sometime.

Today's Topics:

  • Senate Bill introduces CFTC to regulate crypto

  • Do you like free money? Possible Aidrops

  • Web3 Founder's Playbook

  • Quick Links

Senate Bill introduces CFTC to regulate crypto

Usually we don't talk about crypto regulation because it is boring. However today we will make an exception.

Yesterday Senators Cynthia Lummis (R-Wy) and Kirsten Gillibrand (D-NY) introduced a proposed bill called the Responsible Financial Innovation Act. Yes that is the name. It is the most crypto forward bill we have ever seen.

If you have a few hours to kill read the bill. If you don't we summarize below.

The main points are:

  • The Security and Exchange Commission (SEC) could lose the right to regulate most of the crypto market.

  • Authority would go from the SEC to the Commodity Futures Trading Commission (CFTC). The CFTC would have "jurisdiction over all fungible digital assets which are not securities, including ancillary assets."

  • "Ancillary assets" are not fully decentralized which include Bitcoin, Cardano, Solana and other blockchains. This also includes the top 200 tokens on CoinMarketCap.

  • If the bill is passed and the CFTC takes over crypto oversight, they would get tons of cash to "regulate" the industry from major players in crypto.

  • A new way to regulate stablecoins requiring a fully collateralized reserve with access at any time. Banks could also issue stablecoins. Needed given the Luna debacle. Imagine a Bank of America or Chase stablecoin?

  • Crypto gains of $200 or less do not need to be reported to the IRS. Hopefully your gains are much greater.

  • Have the Federal Energy Regulatory Commission study crypto industry environmental issues

Chance of this passing now in Congress is ZERO. However we expect the bill to gain yards like a running back with his head down after the November mid-terms.

Do you like free money? Possible Airdrops

Ash goes through a huge list of potential airdrops as well as who to follow for future airdrop alpha. Enjoy!

The Web3 Founder's Playbook

Blockworks hosts Qiao Wang and Imran Khan to discuss Alliance DAO. Alliance DAO is seen as the Y Combinator of Web3. The two former founders help Web3 founders build, launch and grow.

A must listen if you have any interest in starting a Web3 company of your own.

They discuss:

  • how to think about tokenomics

  • why product should come before community

  • what tech stack developers are building on

  • why Qiao recommends launching your product on Avalanche

  • how to scale a team in Web3

  • the top 3 things founders should think about

  • why you shouldn't start a DAO, and much more!

Quick Headlines

Citadel Securities building a crypto trading marketplace - A giant in the world of equities they are now crossing over to crypto during a bear market. Probably nothing.

This Week in Music NFTs - This is a space you should closely watch.

More than you ever wanted to know about stablecoins - Kick up your feet to dig into this one.

Funding News:

Ethereum DeFi protocol Euler raises $32M - Haun ventures leads the round.

Calaxy gets $26M to build social tokens - Co founded by NBA player Spencer Dinwiddie.

Adimverse lands seed round from a16z - The team is creating a writers room for web3

Hacks:

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Disclosure: We are a newsletter for information only. We are not financial advisors nor do we claim to be. Consult your legal, investment or tax advisor. Crypto is risky. Do you own research.