After 3+ years, I finally published something for @dragonflyxyz Only fitting that it’s a comment letter to my former employer @ustreasury Treasury asked what can be done to counter illicit finance in crypto. We offered ~20 recommendations, but here are the main points:

People sometimes ask why more VCs don't call out founders leaving their high-flying startups. The answer is because: I've seen enough of these behind the scenes, and almost always there's more to the story. Founders very rarely willingly leave a startup that's working. The

99.86% of illicit finance happens somewhere other than crypto. Blockchains leave a public trail. Criminals expose their their stolen and traceable crypto if they leave it sitting there as a DeFi lender. And law enforcement can see it and seize it. 2/3

The full text: https://t.co/bNd5uDCgQz Massive gratitude to @JessicaFurr305 and @LindsayxLin for their thoughtful input

4. Privacy is a right, not a threat. Encourage the responsible development and use of privacy-enhancing technologies while policing specific instances of misuse

3. In 99.9% of cases, do not directly target DeFi protocols with sanctions. There are better ways to leverage sanctions tools for the good of the industry and the country, some of which we discuss

2. At all costs, avoid the inherent overreach of trying to apply old-school AML regs to DeFi (onchain sanctions compliance being a distinct exception)

1. Double down on what works by regulating CeFi for AML, focusing on the chokepoints where bad actors try to transfer funds between onchain and offchain markets

Update:

My 2Z thesis in two paragraphs: Scaling blockchains is one of the biggest problems in the industry. Almost every blockchain's latency is ultimately network-bound. How much value do you create by cutting the block time of a chain in half? And how much value can you capture if

Every 500 likes I'll make Keone's stance wider

Proud to share that the @SECGov has issued @DoubleZero a No-Action Letter for 2Z. 🦅🇺🇸 The first-of-its-kind No-Action Letter gives us confidence that 2Z does not have to register as a class of “equity securities” and that programmatic flows of 2Z on the DoubleZero network are

1/ we hit 6 blobs/block for the first time quick update below on current blob usage

BATTLEWARE is LIVE! MAY THE VRF BE IN YOUR FAVOR 🫡

The @inversion_cap pitch is simple: if blockchains are as good as we say they are, experienced operators (like @santiagoroel and @dannheim_) should be able to transform legacy businesses by migrating them to blockchain rails. Looking forward to watching this play out 👀

Proposal: Agora stablecoin infrastructure to power USDH with a coalition of best-in-class providers. Introduction If Hyperliquid relinquishes their canonical stablecoin to Stripe, a vertically integrated issuer with clear conflicts, what are we all even doing? Summary -

Cheap stablecoin transactions continue to be one of the most important sources of large-scale value that crypto provides today. Excited to see @codex_pbc joining the arena as an L2 and thinking explicitly about synergy between itself and ethereum L1 from day one.

What did I miss @jam_croissant?

I just returned from the Aegean coast of Turkey, where I spend 1-2 weeks every summer Each time I go and speak with Turks about the disastrous currency/inflation situation, I’m reminded of three things: 1. If you live in an emerging market, your financial priority should