The EEA team, masquerading as Managing Director Dan Burnett, Technical Program Director Chaals Nevile, and Sales Director James Harsh, attended Coindesk’s Consensus this year held in Austin, Texas from April 26-28. .
Here are some highlights as reported by our team and other news outlets:
The main topic of the conference was regulation, and there is no doubt about regulatory uncertainty, especially in the United States.
Among the key industry figures who expressed concern was Paul Grewal, Coinbase’s chief legal officer. During the panel discussion, Grewal pointed out that the company is preparing for a potential lawsuit from the SEC, a case that could shed light on the SEC’s specific complaints about Coinbase’s operations. The expectation of such lawsuits highlights the extent to which cryptocurrency companies are acting blindly in the current regulatory environment.
Kate Brady, head of Web3 communications at PepsiCo, explained how her work was hampered by a lack of regulatory clarity. She emphasized that this poses a potential threat to the competitiveness of U.S. companies in the Web3 space, where regulatory uncertainty is rapidly evolving.
A good example of where this uncertainty comes from can be seen in the “The Turf War: Veterans of the SEC and CFTC Weigh In” panel. This led former commissioners and staff from the SEC and CFTC to discuss the relative strengths and weaknesses of each agency in overseeing cryptocurrency markets. The gap is wide, with the SEC arguing that virtually all crypto assets, including Ethereum, are securities and fall under its purview, while the CFTC argues that certain digital assets, including Ethereum, are commodities and therefore should be regulated by the CFTC.
Conference presentations on these topics were reflected in the many discussions the EEA team held with member organizations and prospective members, as well as in a number of side events held in conjunction with the formal conference.
Despite these concerns, it would be wrong to say the consensus remains bearish. Quite a contrast. As our team discovered in many of the discussions, there was a general feeling of optimism among many in attendance.
The contrast between the situation in the United States and what is happening in Europe, Asia Pacific and elsewhere is one clear basis for this optimism. Companies experiencing headwinds in the U.S. are often well-positioned to continue development in the region’s many cryptocurrency-friendly hubs, which not only have clearer regulations, but are also home to excellent development communities. Partnerships with local businesses.
Our team also discovered a strong feeling among many that blockchain development is progressing rapidly after cryptocurrencies’ most challenging period last year and that now is the time to continue building. This added to the sense of optimism at the conference on blockchain and decentralization.
In a hopeful vein for U.S. cryptocurrency and blockchain companies, U.S. House Financial Services Committee Chairman Patrick McHenry and U.S. Senator Cynthia Lummis confirmed that the House Financial Services and Agriculture Committees will hold their first joint hearing on market structure. . These hearings could be an important step toward increasing regulatory clarity for companies operating in this space.
While McHenry and Lummis expressed optimism about future developments in cryptocurrency regulation, according to our team in the field, the overall sentiment is closer to ‘let’s wait and see.’ In the United States, there is a lot of desire for regulation and there is recognition that it is important to do it well, but it is expected to take a lot of time. It will also be important for the industry to come together and figure out what they care about. Otherwise, you risk losing your chance at a seat at the drafting table.
But the stakes are high. Regulatory uncertainty doesn’t just affect cryptocurrency companies. This is as follows: One Coindesk editor noted:, highlighted in Pepsi’s Brady’s talk. Although PepsiCo is an American mainstream company and is not inherently part of the cryptocurrency industry, it is aiming to stand out in Web3. However, the lack of regulatory clarity acts as a significant barrier. As mentioned above, this has implications for the competitiveness of U.S. companies in the Web3 space.
There were many other important topics on the agenda. One of the things that caught our team’s attention was cryptocurrency accounting.
Because the value of cryptocurrency fluctuates significantly on a daily basis, it can be difficult to track the current value of your holdings and properly calculate gains or losses as they occur.
One panel discussion at the conference focused on the unique challenges businesses face, especially when it comes to cryptocurrency accounting. Panelists discussed the importance of maintaining accurate records for tax purposes and the need to properly track the value of cryptocurrency holdings on the balance sheet.
A variety of innovative solutions were presented at the conference to help address these challenges. This includes professional accounting software that integrates with popular cryptocurrency exchanges and tools that can automatically track your profits and losses over time.
EEA hosted a members-only breakfast sponsored by EY. Despite the early hour, many EEA members showed up to meet and mingle in person, many for the first time.
Paul Brody, Head of Blockchain at EY and Member of the EEA Board of Directors, was the host and participant. Co-chairs Michael Gonzales from EY and Dyma Budorin from Hacken spoke about the DRAMA working group’s progress in developing accounting best practices in the DeFi industry. Other companies represented include OpenZeppelin, Microsoft, ConsenSys Mesh, Wanchain, Noves, Certik, C4, Hyperledger, Bitwave, Entersoft, Cartesi, and Cryptio.
The breakfast provided an opportunity for EEA members to network and share insights on a variety of topics related to blockchain technology. Overall, the event served as a valuable platform for collaboration and knowledge sharing among the industry leaders in attendance.
Here are the details: Coindesk Consensus 2023.