Jake Chervinsky

@jchervinsky

125 Following

2374 Followers

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Amanda Tuminelli

We @fund-defi wrote 5 guiding principles for the SEC Crypto Task Force to consider as they implement a Token Safe Harbor for projects *intending to decentralize*, which include proposed eligibility and exit criteria. Check it out and tell us what you think in our feedback form linked below. https://www.defieducationfund.org/post/defi-education-fund-submits-guiding-principles-for-token-safe-harbor-to-sec-crypto-task-force

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Jake Chervinsky

Like many legal frameworks protecting economic interests, intellectual property law has become bloated and counterproductive. But the core idea is valid: creators should be paid for their work or there will be no incentive to create. IP law should be rebalanced, not eliminated.

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Jake Chervinsky

If market structure legislation were ready, then it would be great to do alongside stablecoins. But if stablecoin legislation is ready first — which seems likely given how fast it's moving and how few issues are left to solve — Congress should not delay. Pass STABLE and GENIUS now!

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Jake Chervinsky

The crypto market is a chaotic mix of novel investment theses, macro trends, gambling, and human psychology. The crypto industry is a booming engine of innovation in the early days of revolutionizing the internet age. The market is not the industry. The industry is up only.

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Jake Chervinsky

See you there 🫡

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Jake Chervinsky

Likely nothing in the short term. Footnote 4 says the guidance doesn't apply to yield-bearing stablecoins. I don't read that as SEC saying "yield-bearing stablecoins are securities," just punting for now. But USDe is definitely at a disadvantage, especially with stablecoin legislation also excluding yield from clarity.

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Jake Chervinsky

For years, the SEC was unwilling to answer even simple questions like "are stablecoins securities?" It's great to see the SEC give such a clear explanation as to why the answer is "no" under both the Howey and Reves tests. This SEC is cleaning up the mess 🌟 https://x.com/davidsacks47/status/1908263063650001144

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Here is my conversation with @jchervinsky, chief legal officer at @variant, previously at the blockchain association and compound. We talk about: - how US govt/regulation works from first principles - how crypto played a role in this election - how legislation could change with the new administration - how to use the DUNA for building protocols Podcast here: intothebytecode.com/47-jake-chervinsky

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Daniel Barabander

I’m being boosted so going to take advantage. I think Farcaster is a serious unlock for agents and I’m extremely excited about this category. If you’re building, or thinking of building, an agent on Farcaster, I want to hear from you. Please reach out.

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Jake Chervinsky

It's a good time for a narrative shift from memecoins back to utility anyway. We're heading into a policy environment that should allow founders to build real products and services that have been "blocked by legal" for years. Memes are fun, but so is rebuilding the internet 🙌

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Daniel Barabander

I’m thrilled to share that I’ve been promoted to General Counsel & Investment Partner @variant! As GC I’ll continue the work I’ve been doing alongside @jchervinsky to help our industry define legal & regulatory strategy, & going deep (code-level) w/ founders on their product ideas. I'm also excited to continue working closely w/ founders as a member of the investment team. If you’re working on something new, I’d love to hear from you!

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Jake Chervinsky

Outside counsel and consultants are shifting their view on doing crypto business in the USA at light speed. Everyone expects a massive reduction in regulatory risk. Nobody knows exactly what's going to happen, but it's enough that the new conventional wisdom is "stay here." 🇺🇸

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Jake Chervinsky

Yes. Historically that doesn’t happen so quickly or completely since agencies don’t want to appear fickle and staff is supposed to be non-political, but it won’t be surprising if Trump agencies are glad to immediately undo anything that came from the Biden administration.

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Jake Chervinsky

President Trump will take office on January 20. Crypto policy will immediately and significantly shift when new leaders take over the federal agencies. Between now and then, the outgoing administration may be busy finalizing rules and filing enforcement actions. Stay frosty 🥶

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Jake Chervinsky

True. But (and not to stretch the analogy) sometimes the rewards you get from hard mode are worth the extra time and effort.

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Jake Chervinsky

One way to understand the impact of the presidential election on crypto policy: Trump would be like playing on easy mode, Harris like hard mode. But it's the same game — working with Congress, fighting in the courts, etc. — and we'll win either way. Crypto isn't going anywhere.

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Jake Chervinsky

The SEC spent years saying "tokens are securities." Then last month they took it back, pretended they didn't say it at all, and fake apologized for the confusion it caused. Sorry, but @atuminelli and I aren't buying it, so we told the truth 👇 https://blockworks.co/news/sec-wrong-about-crypto-asset-securities

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Jake Chervinsky

6/ Special thanks to @ohaiom, a true expert on geofencing, for his review and feedback. We’ve been getting many questions from founders at @variantfund about geofencing. We hope this guide helps them and their counsel decide how it fits into their compliance strategy ✌️ [end]

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Jake Chervinsky

5/ The guide ends with a summary of best practices for companies and their counsel to consider in establishing an effective U.S. geofence. It also gives suggestions for how to implement each one.

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Jake Chervinsky

6/ The Morrison court held that: - if a statute has an explicit extraterritoriality provision, then it applies outside U.S. borders, but only up to the provision's limits. - if not, then it only applies to domestic activity under the “presumption against extraterritoriality."

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