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13) Well, let's start with regulation. The biggest thing here is to work collaboratively on ways to address current regulatory gaps while allowing liquidity to move onshore -- to the US, and to Europe, and other jurisdictions.

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14) Stablecoins are maybe the most straightforward: create a reporting/transparency/auditing based framework to ensure they are backed as they say they are: ftxpolicy.com/stablecoins This would solve 80% of the problems while allowing stablecoins to thrive onshore.

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15) It's important, while doing so, to make sure that an open network can grow; if the network is restricted to existing banks, it defeats most of the purpose.

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16) Second, there should be standard markets oversight, in a unified regime that creates similar standards for spot, futures, etc. And third, a disclosure, registration, and anti-fraud based regime for token issuances. ftxpolicy.com/areas-for-cryp

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17) The goal of all of this is to come out stronger. To emerge with customer protection and regulatory clarity in a way that consumers and institutions alike feel comfortable interfacing with the digital asset ecosystem.

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18) And I'm optimistic that we might get there in the next few years; that there is a light at the end of the tunnel. How about use cases? Well, the biggest blockers are network effects: in order for crypto payments to work well, both the buyer and seller need to support it.

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19) This means slow, hard work; building out the network until it approaches transition points where enough merchants and consumers use crypto that payments and remittances start flowing. And, similarly for blockchain based social media and information flow.

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20) Tapping into the existing userbase of video games could be huge--billions of users and hundreds of billions of dollars each year. But this only makes sense if it makes the virtual worlds more engaging, not less.

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21) The real goal, here, is to take a great game, and integrate NFTs in a way that makes the game better. And, meanwhile, networks need to keep scaling. I always laugh when a blockchain says they're already fast. None are! Fast means millions of TPS. No one is there yet.

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8:39 PM · Dec 27, 2021Twitter Web App

22) So what matters the most is having a concrete roadmap to scale to millions of TPS, and executing well on it. So, there are some concrete things that the crypto ecosystem needs to manage well over the next year. But more generally, everything matters.

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23) I may write more on this later, but one of the core theses I've come to believe over the last few years is: Everything is the same; everything is commensurable. If you want to grow trust in the industry, regulation matters. But so does UI/UX; and each scam detracts.

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