Regulation and Beyond: Key Takeaways from Consensus 2023

Team EEA, successful the guise of Executive Director Dan Burnett, Director of Technical Programs Chaals Nevile, and Director of Sales James Harsh, was connected the crushed astatine this year’s variation of Consensus by Coindesk, which was held successful Austin Texas from April 26-28. 

Here are the cardinal takeaways arsenic reported by our squad and different quality sources. 

There is nary uncertainty that regularisation was the large taxable astatine the conference, and successful peculiar regulatory uncertainty successful the US.

Among the cardinal manufacture figures voicing their apprehensions was Paul Grewal, Coinbase’s Chief Legal Officer. In a sheet treatment Grewal pointed retired that helium was bracing for a imaginable suit from the SEC, an lawsuit that could shed immoderate airy connected the SEC’s circumstantial grievances with Coinbase’s operations. The anticipation of specified a suit underscores the grade to which crypto companies are flying unsighted successful the existent regulatory environment.

Kate Brady, Head of Communications for Web3 astatine PepsiCo, discussed however she was being stymied successful her enactment by the deficiency of regulatory clarity. This underlined that regulatory uncertainty is simply a imaginable menace to the competitiveness of American companies successful the rapidly evolving Web3 space.

A bully illustration of wherever this uncertainty is coming from was seen successful the “The Turf War: Veterans of the SEC and CFTC Weigh In” panel. This brought erstwhile commissioners and unit of the SEC and CFTC into a treatment astir the comparative strengths and weaknesses of each bureau successful supervising crypto markets. The disagreement is large, with the SEC asserting that virtually each crypto assets, including Ethereum, are securities and autumn nether its purview, portion the CFTC claims that definite integer assets, including Ethereum, are commodities and should beryllium regulated by the CFTC.

The league presentations connected these topics were reflected successful galore discussions the EEA squad had with subordinate organizations and prospective members, arsenic good arsenic successful aggregate broadside events held astir the ceremonial conference.

Despite these worries, it would beryllium incorrect to accidental that Consensus was held connected a down note. Quite the contrary. As our squad recovered successful galore of their discussions, determination was a wide consciousness of optimism among galore present.  

The opposition betwixt the concern successful the US and what is happening successful Europe, Asia-Pacific and beyond is 1 evident grounds for this optimism. Companies who are feeling the headwinds successful the US are successful galore cases well-placed to proceed their improvement successful the galore crypto-friendly hubs successful those regions that not lone person much regulatory clarity, but besides are location to talented improvement communities who person developed bully moving relationships with section enterprises.

Our squad besides recovered a beardown consciousness among galore that, coming retired of 1 of the astir hard periods for crypto past year, developments successful blockchain person been carrying connected apace and that it was clip to support building. That added to the optimistic consciousness astatine the league astir blockchain and decentralization.

In a much hopeful vein for American crypto and blockchain companies, Patrick McHenry, Chairman of the US House Financial Services Committee, and US Senator Cynthia Lummis, confirmed that the House Financial Service Committee and Agricultural Committee would clasp the archetypal associated proceeding connected the marketplace operation surrounding integer assets successful May 2023.  Such hearings could beryllium an important measurement towards providing much regulatory clarity for companies operating successful this space.

While some McHenry and Lummis expressed optimism astir aboriginal developments successful crypto regulation, according to our squad connected the ground, the wide temper was much ‘wait and see’. There is simply a batch of appetite for regularisation successful the US, and designation that doing it good is important, but the anticipation is that it volition instrumentality a batch of time. It volition besides beryllium important for the manufacture to get unneurotic and fig retired what they are funny in, oregon hazard losing an accidental to get a spot astatine the drafting table.

The stakes nevertheless are high. Regulatory uncertainty doesn’t conscionable impact crypto companies. This, arsenic one Coindesk exertion noted, was underscored successful the speech by Pepsi’s Brady. Despite PepsiCo being a mainstream American institution and not intrinsically portion of the crypto industry, it is aiming to marque a people successful Web3. However, the lack of regulatory clarity is proving to beryllium a important barrier. As mentioned above, this has implications for the competitiveness of American companies successful the Web3 space. 

There were a big of different important topics connected the docket arsenic well. One that caught the attraction of our squad was crypto accounting. 

With the worth of cryptocurrencies fluctuating wildly connected a regular basis, it tin beryllium hard to support way of the existent worth of one’s holdings, and to decently relationship for gains and losses erstwhile they occur. 

One sheet treatment astatine the league focused specifically connected the unsocial challenges facing businesses erstwhile it comes to crypto accounting. The panelists discussed the value of close record-keeping for taxation purposes, arsenic good arsenic the request to decently way the worth of cryptocurrency holdings connected a equilibrium sheet.

A fig of innovative solutions were presented astatine the league to assistance woody with these challenges. These see specialized accounting bundle that integrates with fashionable cryptocurrency exchanges, arsenic good arsenic tools that let for automatic tracking of gains and losses implicit time.

The EEA hosted an exclusive Member-Only breakfast, sponsored by EY. Despite the aboriginal hour, a fig of EEA Members turned up to conscionable and mingle successful person, galore for the archetypal time. 

Paul Brody, caput of blockchain astatine EY and a subordinate of the EEA Board, was a big and participant. Co-chairs Michael Gonzales of EY and Dyma Budorin of Hacken talked done wherever the DRAMA Working Group is successful processing champion practices for accounting successful the DeFi industry. Other companies represented see OpenZeppelin, Microsoft, ConsenSys Mesh, Wanchain, Noves, Certik, C4, Hyperledger, Bitwave, Entersoft, Cartesi, and Cryptio

The meal provided an accidental for EEA members to web and stock insights connected assorted topics related to blockchain technology. Overall, this lawsuit served arsenic a invaluable level for collaboration and cognition sharing among manufacture leaders successful attendance.

You tin find much astir Consensus 2023 connected Coindesk.