Major crypto VC outlines policy principles for the Trump era
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Paradigm, the giant crypto-focused venture fund, only plans to get behind policy that keeps blockchains an open and dynamic technology, according to previews of new blog posts shared early with Axios exclusively.
Why it matters: Paradigm is a multi-billion dollar fund, in terms of assets under management, with a strong policy team that can access leaders on both sides of the political aisle.
What they're saying: "We believe that the heart of crypto is its openness and neutrality – its ability to provide universal access and resist censorship," its policy team wrote in a blog post shared early with Axios exclusively.
- "Premature or overly restrictive regulations risk stifling the creative potential of this space, cutting off possibilities before they even emerge. We cannot hobble this revolutionary technology as it takes its first steps."
Zoom in: Overall, the principles detailed in what the firm is calling its policy anchors are focused on fulfilling the potential that Paradigm believes the technology possesses. The implications of those principles mean, for example, that policies and regulations:
- Are not written assuming that the use cases today are the only use cases that it will ever be used for;
- Focuses crime prevention on the access and application layers of the technology, rather than diminishing the neutrality of the core systems (usually, the blockchains themselves, such as Bitcoin or Cardano);
- Avoids entrenching the status quo;
- Does not privilege certain technologies over others, and;
- Continues to embrace open systems that anyone can participate in, without seeking permission from a central body.
The policy principles also encourage fostering key ideals of the blockchain community, such as encouraging open source development (no matter how that technology might be used, a nod to, for example, the prosecutions of the developers of Tornado Cash) and supporting privacy.
- The policy anchors also note that notions of liability may need to be reconsidered in light of blockchains' unique decentralized structure.
The firm also announced six new members of its policy council. These members include high-level veterans of both Republican and Democratic operations, including former advisors to the president.
- For example, it announced both Johnny DeStefano, who formerly oversaw president Trump's office of intergovernmental affairs.
- It also announced Jen Brown, BGR Group vice-president and former Banking Counselor to Sen. Chuck Schmer (D-NY).
- The policy council already includes a former GOP senator, Democratic operatives and members of past White House administrations.
Flashback: From the start, Paradigm has been able to access corners of the traditional world. In 2018, it was able to secure an investment in one of its first funds from Yale University's endowment.
- It has invested in some of the most successful companies, such as Uniswap Labs, Osmosis, Zora and Fireblocks.
The bottom line: "We only support crypto legislation in the event that doing so is widely viewed, internally and externally, as necessary to maintain or accelerate open crypto's progress," the blog explains.
