April 20, 2023
Digital Assets are coming
Digital Assets are coming (https://bit.ly/3mRfB9G) and my support for Commissioner Peirce's dissent on the SEC's move to decide which innovation will succeed is only amplified by the fact that the SEC can not spell 'innovation' in the url of their post on her dissent.
The largest financial players in the world are getting involved in Tokenized Securities, but it is going off-shore and getting feisty as the SEC equivocates on central questions that start with crypto, quickly go to store of value, then move to blockchain awfully fast...The videos of Gensler being taken to task earlier this week are wild (https://lnkd.in/ddsQVDJT, https://lnkd.in/ddfejiFe, and https://bit.ly/3KTSxPE, and https://bit.ly/3mZ2cfA and https://bit.ly/3Lhyzj5). Other Gensler twitter appearances of note... (https://bit.ly/3GWBpaQhttps://bit.ly/3mZ2bbw, https://bit.ly/3H0uHk7, and the best one here https://bit.ly/43NcAYC).
I am in Bermuda today for meetings and Coinbase publicly announces a major move here (https://bit.ly/3AhC7LY). We can not have the smart DLT money move off shore. We need to keep innovation in the US. Bittrex Global CEO statement earlier this week was pretty clear.https://bwnews.pr/3mQShsB
Our regulators are driving permissioned chains for banks who all acknowledge they will end up permissionless. Either way Inveniam will support the delivery of on time, cryptographically provable data for the Asset and Fund digital life cycle for digital instruments.
Distributed ledgers were a breakthrough because they allow a peer-to-peer network to share encryption-based mathematical “proofs” (sometimes referred to as zero knowledge proofs or ZK) while keeping most or all underlying data private.
A digitized asset has essential data and verifications shared on a distributed ledger where it can be inspected by any party. DLT can report the fact of the data’s existence and immutability while initially not revealing the data itself. DLT can enforce different levels of transparency that private asset owners still need; revealing to everyone and anyone that a quarterly report is ready and unaltered, but only revealing selectively the actual contents of the quarterly report itself (which is still reserved for specifically permissioned counterparties).
It is also notable that neither public regulation nor DLT can completely eliminate fraud. Public and private markets seek to make the fraudster’s expected costs higher than their rewards. We need innovation happening in the US.