LeXpunK Weekly Update
December 3, 2021
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Plenty to report this week and last. Our Working Groups have made great progress - hosting weekly and bi-weekly meetings to address our proposals and launch our deliverables in the near term.
We responded and fully support our partner Lido’s proposal to address tax and regulatory considerations surrounding liquid staking. In LeXpunK spirit, we suggested a narrowed, action-oriented approach that would support builders and the fast-growing liquid staking ecosystem. Check out our response here.
Stay tuned for our newly launched GitBook page in the works. It will host our LeXpunK Internal Wiki filled with community resources and principles. We also look forward to sharing a “Community Calendar” to keep the Army in tune with our progress and up to date with other industry-specific events from our partners.
(1) Work Product and Working Groups.
We want to highlight the work that’s been done in our DAO Defense Working Group and DAO Coop Working Group:
DAO Defense WG: We are pretty far along on a joint defense agreement for DAOs/multisigs that is drafted to allow pseudonymous participation. This will be accompanied by an explanatory article that addresses how DAOs are structuring litigation defense funds such as potentials for a multisig to provide indemnification.
DAO Coop WG: We are building an interactive tool to determine whether a coop is appropriate for prospective entites. It will address patronage and investor classes and dig deep into consumer/builder patronage and investor/equity patronage.
The WG will apply this tool to more novel approaches such as stablecoin transactions and ETH2 proof-of-stake applications as potential forms of patronage.
(2) LeXpunK Updates.
If anyone in the Army has work that they produced outside of the LeXpunK-sphere that they would like to be highlighted in our upcoming Weekly Updates, DM @sydneylauren.
We want to thank everyone who voted and shared their thoughts in the Community Call proposal. The results are in with over 57% voting in favor of a L3X Holder Exclusive Call. We are taking into account the messages received in the forum and would like to roll out another General Army call in the future. L3X Holders: be on the lookout as we to coordinate our calls in the next few weeks!
Of course, we are still collecting and discussing the needs in our founding communities and how to best rally amidst an increasingly dire regulatory atmosphere. Please reach out!
Our friends at BanklessDAO published a comprehensive newsletter that highlights the value that crypto-lawyers will have in our ecosystem - along with excellent opinion pieces and commentary on new developments in the regulatory space.
@ImpermanentGain published a guide on the latest FATF guidance on DeFi and how to circumvent classification as a Virtual Asset Service Provider. He also delved into governance and what constitutes decentralized governance. Check it out here!
Twitter Finds & Interesting Articles:
The SEC Investor Advisory Committee held a public meeting on December 2. The LeXpunK Army tuned in real time to watch the panel discussion on crypto and digital assets, entitled, “Helping to Ensure Investor Protection and Market Integrity in the Face of New Technologies.”
One of the panelist’s, Tyrone Ross, CEO of Onramp Invest, presentation was particularly poignant. He challenged the SEC’s notion of investor protection for crypto and highlighted the importance in promoting access to financial systems. We’re excited to have him on our radar.
Unsurprisingly, Commissioner Peirce’s remarks were pointed and actionable. She tackled the importance of regulatory clarity (criticizing regulation by enforcement), investor access, and individual liberty. She urged the Commission to tackle questions concerning:
- Must a token always be traded as a security if sold as part of an investment contract
- Custody of crypto
- Could a platform trade crypto securities along with traditional securities and how would it be able to register with the SEC?
- How (and does) the NFT space implicate securities laws
- What kind of investor harm results from the SEC’s refusal to approve a bitcoin ETP
In character, Commissioner Peirce strongly advocated for the value that stablecoins and DeFi bring to financial markets. She notably pointed to the unique aspects of the tech, “its transparency and its objective participation criteria embedded in the code,” which make it possible for the Commission to “regulate with a lighter hand so that people can be more free in their financial lives.” Further, she cautioned the Commission to step back and not force regulation into “[their] comfort zone,” by, for example, replacing stablecoins with CBDCs. We’re grateful for her leadership and endorsement of the crypto-ecosystem.