Peter Van Valkenburgh: Crypto is seen as unregulated online sports betting, the Coin Center is fighting for developers’ rights and the Blockchain Regulatory Certainty Act aims to clarify regulations.

Key takeaways

• The current state of crypto resembles unregulated online sports betting, which is a negative perception for the industry.
• Coin Center is dedicated to protecting the rights of developers in the crypto space from excessive regulatory action.
• Common sense regulation should apply to trusted entities in crypto, but not to software development.
• AI development could benefit from decentralized systems of ownership and reward mechanisms.
• Legal standards for the distribution of cryptography and AI codes may be similar under the First Amendment.
• The public licensing regime for funds transfer is not suitable for crypto businesses due to different risk profiles.
• Software developers providing neutral infrastructure should not need to register or have a license before publishing.
• Forcing decentralized systems to record and report user information is problematic.
• Decentralized systems reduce information asymmetries compared to traditional brokerage contexts.
• The non-custodial nature of DeFi vaults raises regulatory questions regarding control.
• The Blockchain Regulatory Certainty Act aims to clarify jurisdiction over money transmission in the crypto space.
• The Tornado Cash lawsuits lacked specificity and should have reflected changes to the software over time.

Guest presentation

Peter Van Valkenburgh is research director at the Coin Center, a nonprofit research and advocacy organization focused on public policy issues facing crypto technologies. He previously served as a Google Policy Fellow at TechFreedom, where he wrote policy and litigation briefs. He has testified before Congress and briefed lawmakers in the United States and European Union on crypto regulation.

The Current State of Crypto

• The current state of crypto is akin to unregulated online sports betting, which is a shame for the industry.

  —Peter Van Valkenburgh

• The average American feels misled about the promise of crypto as a force for financial freedom.
• Crypto must replace the existing financial system to avoid being subordinate to banks.

• Crypto has a terrible reputation and is often seen as a giant online casino.

  —Peter Van Valkenburgh

• The perception of crypto as an online sports bet highlights the need for improved regulation.
• Current industry practices are compared to gambling, highlighting the need for responsible regulation.

• The average American feels like they’re tough…it’s just online sports betting with no regulator, it’s stupid.

  —Peter Van Valkenburgh

• The negative perception of crypto is key to discussing its future and potential improvements.

Mission and Regulatory Position of Coin Center

Decentralization and its implications

Legal standards and regulatory challenges

The Blockchain Regulatory Certainty Act (BRCA)

The Challenges of Prosecuting Crypto Crimes

Responsibility and Liability in the Crypto Space

Implications of the new regulatory bill

Law enforcement priorities and resource allocation

The future of crypto regulation