The EEA crew, within the guise of CEO Dan Burnett, Director of Technical Applications Chaals Nevile and Director of Gross sales James Harsh, was on the bottom at this yr’s version of Consensus by Coindesk, which was held in Austin Texas from April 26-28. .
Listed here are the important thing takeaways from our crew’s report and different information sources.
There isn’t any doubt that the principle subject of the convention was regulation, and particularly regulatory uncertainty within the USA.
Among the many key business figures who voiced their issues was Paul Grewal, Coinbase’s chief authorized officer. Within the panel dialogue, Grewal famous that he’s making ready for a possible SEC lawsuit, an occasion that would shed some mild on the SEC’s particular complaints about Coinbase’s operations. The prospect of such a lawsuit underscores the extent to which crypto firms are flying blind within the present regulatory setting.
Kate Brady, head of communications for Web3 at PepsiCo, spoke about how she was hampered in her work by an absence of regulatory readability. This highlighted that regulatory uncertainty is a possible risk to the competitiveness of US firms within the quickly growing Web3 house.
A superb illustration of the place this uncertainty comes from was seen within the panel “The Turf Battle: Veterans of the SEC and CFTC Weigh In.” This has introduced former SEC and CFTC commissioners and workers right into a debate over the relative strengths and weaknesses of every company in overseeing the crypto market. The divide is vast, with the SEC arguing that the majority crypto belongings, together with Ethereum, are securities and falling underneath its jurisdiction, whereas the CFTC claims that sure digital belongings, together with Ethereum, are commodities and ought to be regulated by the CFTC.
Shows on the convention on these matters had been mirrored within the many discussions the EEA crew had with member organizations and potential members, in addition to within the quite a few facet occasions held across the official convention.
Regardless of these issues, it could be mistaken to say that the Consensus was held at a low degree. Precisely the other. As our crew present in lots of their discussions, there was a common sense of optimism amongst most of the attendees.
The distinction between the scenario within the US and what’s taking place in Europe, Asia Pacific and past is one apparent purpose for this optimism. Firms going through issues within the US are in lots of circumstances well-positioned to proceed their improvement within the many crypto-friendly hubs in these areas that not solely have better regulatory readability, however are additionally dwelling to gifted improvement communities which have developed robust working relations with native firms.
Our crew additionally discovered a robust feeling amongst many who, after one of the troublesome durations for crypto final yr, improvement within the blockchain continues at a terrific tempo and that it’s time to proceed constructing. This contributed to the optimistic feeling on the convention round blockchain and decentralization.
In a spirit of better hope for US crypto and blockchain firms, Patrick McHenry, Chairman of the US Home Monetary Companies Committee, and US Senator Cynthia Lummis, confirmed that the Home Monetary Companies Committee and the Agriculture Committee will maintain their first joint listening to on the construction of the market round digital belongings in Might 2023. Such hearings might be an vital step in direction of offering better regulatory readability for firms working on this house.
Though each McHenry and Lummis expressed optimism in regards to the future improvement of crypto regulation, in accordance with our crew on the bottom, the overall temper was extra ‘let’s wait’. There’s a nice urge for food for regulation within the US and recognition that doing it properly is vital, however it’s anticipated to take a very long time. It can even be vital for the business to return collectively and work out what pursuits them or danger shedding the chance to get a seat on the drawing desk.
The stakes, nevertheless, are excessive. Regulatory uncertainty would not simply have an effect on crypto firms. This, like one Coindesk editor famous, Pepsi’s Brady identified within the dialog. Regardless of PepsiCo being a significant US firm and never a core a part of the crypto business, it goals to make its mark on Web3. Nevertheless, the dearth of regulatory readability has confirmed to be a big impediment. As talked about above, this has implications for the competitiveness of US firms within the Web3 house.
There have been additionally a variety of different vital matters on the agenda. One which caught our crew’s consideration is crypto accounting.
As a result of the worth of cryptocurrencies fluctuates wildly each day, it may be troublesome to maintain monitor of the present worth of 1’s holdings and correctly account for features and losses once they happen.
One panel dialogue on the convention targeted particularly on the distinctive challenges companies face on the subject of crypto accounting. The panelists mentioned the significance of correct document holding for tax functions, in addition to the necessity to correctly monitor the worth of the cryptocurrency share within the stability sheet.
On the convention, a variety of revolutionary options had been offered that can assist in going through these challenges. These embrace specialised accounting software program that integrates with fashionable cryptocurrency exchanges, in addition to instruments that enable automated monitoring of features and losses over time.
EEA hosted an unique breakfast for members solely, sponsored by EY. Regardless of the early hours, a number of EGP members confirmed as much as meet and socialize in particular person, many for the primary time.
The host and participant was Paul Brody, head of blockchain at EY and member of the EEA Board. Co-chairs Michael Gonzales of EY and Dyma Budorin of Hacken talked about the place the DRAMA activity power is in growing finest practices for accounting within the DeFi business. Different firms represented embrace OpenZeppelin, Microsoft, ConsenSys Mesh, Wanchain, Noves, Certik, C4, Hyperledger, Bitwave, Entersoft, Cartesi and Cryptio
The breakfast offered a chance for EEA members to community and share insights on varied matters associated to blockchain know-how. General, the occasion served as a priceless platform for collaboration and information sharing among the many business leaders in attendance.
You’ll find extra about Consensus 2023 on Coindesk.
