On The Brink with Castle Island

Matt and Nic are back with another week of news and deals. In this episode:  Updates on South Shore Bar Pie The CIV boys consider new sponsors Regional banks keep failing Is the turmoil in the bank sector deflationary or inflationary? How does the Fed end the banking crisis? McHenry’s stablecoin bill Biden proposes a 30% tax on Bitcoin miners Why Biden’s DAME tax is counterproductive RFK Jr’s pro-crypto takes Nic throws his hat in the ring for RFK Jr Gensler running for Senate in Maryland/ Where in the world are the FTX executives FTX attempts to claw back funds from Genesis FTX debtors stumble on Mysten Labs Is summary judgment in the Ripple SEC case almost due? Nate Chastain is found guilty of insider trading Poloniex settles with OFAC OpenX is reprimanded by Dubai for not registering Coinbase launches in Bermuda Bhutan has been mining Bitcoin since 2020 NYMAG spills the beans about Protego CIV is throwing a pickleball event at BTC Miami Content mentioned in this episode:  Jen Wieczner in NYMAG, Is the

Simon Forster and Duncan Trenholme of TP ICAP join the show. In this episode we discuss:  - TP ICAP's journey in the crypto / blockchain space.  - The market structure for institutional cryptoasset trading.  - The future of tokenization and the types of assets that are likely to be represented on chain.  - The regulatory landscape and how this will shape the pace of building in the industry.    To learn more about TP ICAP and their strategy visit:  www.tpicap.com/digitalassets

Matt and Nic return for another week of news and deals. In this episode:  What’s the deal with south shore bar pie? We review Consensus in Austin Nic’s 2022 Coin Center dinner incident Nic’s gas siphoning incident First Republic appears heading for collapse Why was First Republic given time to save itself but not Signature? Block partners with Yellowcard for cross-border African payments Open Exchange’s purported investors deny investing in the business Coinbase is setting up operations in Bermuda Coinbase is suing the SEC for clarity Hong Kong embraces banking for crypto firms NYDFS Superintendent Harris denies that crypto caused the Signature collapse The Biden admin is backpedaling on whether crypto contributed to the banking crisis House Republicans probe financial regulators for info on de-banking of crypto The FBI has searched the home of FTX’s Ryan Salame We reminisce on FTX’ Crypto Bahamas conference Why is flare gas mining better than the alternative? Nic’s music royalties situation Nic resolves his

Matt and Nic are back with another week of news and deals. In this episode:  We debate some curious new sponsors The Miami gas shortage Nic’s impressions of NFT NYC We review Eric’s Orb When do Harberger taxes work? CIV is hiring The SEC is suing Bittrex and alleges that Algorand and Dash are unregistered securities Gensler is skewered by Republican lawmakers in the House Financial Services hearing Gensler refuses to answer whether Ethereum is a security We review the House hearing on stablecoins The McHenry Waters stablecoin bill appears to be dead Does FedNow make stablecoins obsolete? Should stablecoin issuance be limited to banks? A stablecoin catch-22 Hester Peirce dissents on the proposed SEC exchange rule Content mentioned: CIV is hiring Austin Campbell’s written testimony to the House financial services committee Hester Peirce, Rendering Innovation Kaput: Statement on Amending the Definition of Exchange  

Dan Tapiero, the founder of 10T Holdings and 1 Round Table Partners joins the show. In this episode we discuss: The performance of Bitcoin as a macro asset over the past year. The current regulatory environment and how the USA is losing its lead versus other countries in the digital asset ecosystem. The prospect of U.S. companies going public in non-U.S. jurisdictions. How Dan and his team approach growth stage investing. The secondary market and how Dan thinks about building ownership via secondary transactions. The LP landscape and how allocators are thinking about digital asset ecosystem managers. To learn more about Dan visit the 1RT website and follow Dan on Twitter  

Eric Wall is a cryptocurrency researcher, analyst, critic, and investor. In this episode we sit down to discuss the creation and premise of his new project, the Orb.  What is the orb? How did the orb come about? How to bet on the human capital and reputational growth of individuals Why previous social tokens failed What does the orb entitle you to? Why the orb is not a security Harberger taxes and their implementations so far How harberger taxes create better allocative efficiency Harberger taxes and domain names The problem with social tokens as a way to invest in people Why an obligation to a single holder is better than one to many holders Eric’s feud with the Hex community and how the rb could solve this Possible orb failure modes Possible AI issues with the orb Why orb issuers have an incentive to provide value to holders The possible role of orbs in venture capital How the orb could disrupt expert networks How to parameterize the orb The significance of the orb animations Further reading: Orb.land

Matt and Nic return for another week of news and deals. In this episode:  Is Ethereum going through a ‘bullish unlock’? Did the SEC decicion around staking help decentralize Ethereum? What is a commodity? We pitch futures for restaurant bookings The problem with ‘phygitals’ What’s going on with DWF labs? Twitter users will be able to trade crypto through the app Is FedNow a CBDC? Does FedNow introduce risks to the banking system? A relaunch of FTX gets more likely How the DOJ caught the Silk Road hacker Could a CBDC emerge which is actually private? We roll out the Tap In or Tap Out segment Is France going to become a crypto haven? The NYT article on Bitcoin mining Did the NYT doctor pictures to make Bitcoin miners look more polluting than they are? CIV is hiring Sponsor notes:  Subscribe to the Coin Metrics State of the Network newsletter: this week, Ethereum's Shanghai redemption

Dennison Bertram, the co-founder and CEO of Tally, returns to the show. In this episode we discuss: Dennison’s career in the crypto industry from exchange founder to founding Tally. How to frame DAOs from a total addressable market perspective. What types of companies and industry categories would be better served as DAOs. Best practices in managing DAOs. The regulatory landscape for DAOs and how state LLC regulations could factor into future legislation. How Tally works with leading DAOs. To learn more about Tally visit their website and follow Dennison on Twitter. See also:  On The Brink, Dennison Bertram and Raf Solari on Reforming DeFi Governance (March 2021)

Matt and Nic return for another week of news and deals. In this episode:  What are the prospects for dealing with OCP 2.0? Creditors are considering relaunching FTX int’l The boundary between being a visionary and a scammer Nic’s feud against NPR What’s the deal with the bug eating meme? Are lobsters bugs? What happened to the tungsten cube NFTs? Singapore banks might be warming up to crypto Hong Kong is red hot as a crypto zone A new paper alleges the Fed has overstepped its discretionary authority The Case for Banning Crypto The US treasury report on DeFi protocols Apple embeds the Bitcoin whitepaper on all laptops Nic’s UFC picks and Matt’s golf picks Content mentioned in the episode: Julie Hill, From Cannabis to Crypto: Federal Reserve Discretion in Payments Politico, U.S. Diplomat to Washington: You’re Becoming Obsolete in One Big Area of Tech Policy US Treasury, Illicit Finance Risk Assessment of Decentralized Finance Kathleen Breitman in Fortune, Ethereum, Arbitrum, and why L2 solutions are such

Lorien Gabel and Benjamin Thalman of Figment join the show. In this episode we discuss: The founding story of Figment and the focus of the firm. The evolution of proof of stake blockchains and how Figment helps their customers with staking. Ethereum, the Shanghai upgrade and the likely impacts of withdrawal functionality on the network. Views on the current regulatory environment and how that impacts proof of stake participants. To learn more about Figment visit their website and follow Lorien and Benjamin on Twitter.

In this episode I sit down with David Thompson, managing partner at Cooper & Kirk. We cover the emergence of Operation Choke Point 2.0 and what recourse can be sought by the industry. In this episode:  Cooper & Kirk's track record and reputation The story of Choke Point 1.0 and how Cooper & Kirk helped end it How was OCP 1.0 resolved?  Why Cooper & Kirk wrote their recent white paper on OCP 2.0 Differences between Choke Point 1.0 and 2.0  Inconsistencies in FDIC Chair Gruenberg's Congressional testimony Why David thinks that a complaint on due process grounds might be the best option for affected firms  Relevant constitutional protections  How OCP 2.0 might resolve The fate of the SPDIs Possible violations of the Administrative Procedures Act by the Fed How SCOTUS might rule on this issue  Further reading:  Cooper & Kirk: Operation Choke Point 2.0: The Federal Bank Regulators Come For Crypto

Matt and Nic return for another week of news and deals.  Cooper and Kirk’s white paper on Operation Choke Point 2.0 How bank regulators put crypto-facing banks in a catch-22 SBF charged with bribing a Chinese official Is Sam funding his legal defense with funds purloined from FTX users? The CFTC charges Binance with operating an unlicensed derivatives exchange Binance execs haz no confidence in their geofencing How did the CFTC get their hands on CZ’s Signal history The SEC shuts down Beaxy Microstrategy buys another $150m worth of Bitcoin NASDAQ is aiming to launch their crypto custody platform in June What’s the deal with McHenry’s stablecoin bill? House Democrats would make issuing a stablecoin effectively illegal Elizabeth Warren is “building an anti-crypto army” Are DAOs unincorporated associations or general partnerships? Is the SPDI dead in the water? Did the FDIC Chair perjure himself in front of Congress this week? What’s the deal with the SigNet sale? Is dedollarization happening? Content mentione

Matt Hougan, the Chief Investment Officer at Bitwise Asset Management joins the show. In this episode we discuss: The banking crisis and Operation Chokepoint 2.0 The decisions facing the Fed and the second order impacts of Fed policy How the cryptocurrency industry has evolved post FTX Prospects for stablecoin and market structure regulation in the digital asset industry The bitcoin futures market The launch of the Bitwise Bitcoin Strategy Optimum Roll ETF (BITC) To learn more about Bitwise visit www.bitwiseinvestments.com and follow Matt on Twitter.  

Matt and Nic return for another week of news and deals. In this episode:  Matt’s turkey trouble continues Nic’s vespa problem Nic’s latest Choke Point 2.0 article Did the government destroy Signature on purpose? Who is the main architect of Choke Point 2.0? Why was Signature closed when PacWest and First Republic were given time? The Catch-22 in NY banking law Who has recourse in the Signature situation? Why we won’t be going offshore The SEC announces charges against Justin Sun and celebrity endorsers The SEC sends Coinbase a Wells Notice FTX creditors recoup $460m from Modulo Capital Reps Emmer and Soto introduce the Blockchain Regulatory Certainty Act The White House report is hostile to crypto Matt’s Hong Kong conspiracy theory Is the EU racing ahead of the US in terms of regulation? The XRP case is nearing summary judgment Bitwise announces their futures ETF $BITC We read some of our podcast reviews Content mentioned: Nic in Pirate Wires, Did The Government Start A Global Financial Crisis In An Attemp

Jamil and Nick, co-founders of Gamma.io, join us on the show to discuss: Lowering the barrier to inscribing NFTs on Bitcoin Why creators and collectors are excited about NFTs on Bitcoin Designing a trustless Ordinals marketplace that aligns with its unique culture The emerging collecting and trading culture on Bitcoin and it's key differences  

Nick Hansen is the cofounder and CEO of Luxor, a Bitcoin mining pool. He joins to talk to us about his excitement around ordinals and inscriptions, and how Luxor is thinking about the opportunity. The history of ordinals and how Luxor got started in the space How Luxor mined the first 4MB block in Bitcoin Luxor’s decision to acquire Ordinalhub and their intentions with the project Risks Luxor incurred by mining the first 4MB block Transaction standardness versus validity How ordinals increase the overall quantity of Bitcoin blockspace The risks of out of band fees to Bitcoin Does Bitcoin already have MEV? How does the block reward decay make reorgs more likely? Where Luxor sees opportunity in ordinals Have inscriptions had a material impact on miner rewards? The effect of inscriptions on fees Transacting with PSBTs versus standard NFT marketplaces Nick’s confidence in the long-term persistence of Bitcoin state Why it’s virtually impossible to purge state in Bitcoin Are ordinals and inscriptions a violation o

Matt and Nic are back to cover a dramatic week in crypto. Galaxy Digital's Alex Thorn also joins to provide market color. In this episode:  Bitcoin’s price action in response to the bank runs USDC recovers its peg FTX crime family news Signature bank is shut down somewhat arbitrarily What happened with Silvergate? Is Operation Choke Point 2.0 real? Blockchain Association FOIA’s federal banking regulators Are macro funds dipping their toes back into Bitcoin? Crypto Banks are gutted Was Signature solvent when it was shut down? Will Signet be sold off in the Signature auction? What was the importance of SEN and Signet? First Republic secures $30b in deposits What happened with Silvergate and the FHLB? Galaxy Digital’s head of research Alex Thorn joins the show Arbitrum announces their airdrop

Matt and Nic are back for another tumultuous week of news and deals. In this episode:  Nic’s Vespa crisis FTX crime family update Grayscale’s oral arguments go well against the SEC in the GBTC case Binance.US wins the right to buy the Voyager assets in court NYAG sues Kucoin and alleges that ETH is a security Silvergate is undergoing an orderly wind-down of the bank Why did Silvergate really collapse? Why are regulators trying to precipitate bank runs? Structural issues explaining why Silvergate’s deposits were so correlated SVB experiences a bank run Are the Silvergate and SVB difficulties warning sights that the Fed’s rate regime can’t last? Content mentioned:  How Banks Fail, by Austin Campbell

Matt and Nic are back for another tumultuous week of news and deals. In this episode:  Nic’s Vespa crisis FTX crime family update Grayscale’s oral arguments go well against the SEC in the GBTC case Binance.US wins the right to buy the Voyager assets in court NYAG sues Kucoin and alleges that ETH is a security Silvergate is undergoing an orderly wind-down of the bank Why did Silvergate really collapse? Why are regulators trying to precipitate bank runs? Structural issues explaining why Silvergate’s deposits were so correlated SVB experiences a bank run Are the Silvergate and SVB difficulties warning sights that the Fed’s rate regime can’t last? Content mentioned:  How Banks Fail, by Austin Campbell

Rob Hamilton, the founder and CEO of AnchorWatch joins the show. In this episode we discuss: Rob’s career journey and path to finding Bitcoin. The origins of miniscript and how Rob started to build in this area. The potential applicability for miniscript to the custody market. The current state of bitcoin core development. Ordinals and how Rob started to get involved in this project. The future applicability of ordinals and inscriptions. Links: AnchorWatch, Rob’s Twitter.