Introduction

The episode introduces Franklin Templeton and their perspective on cryptocurrency.

Franklin Templeton's View on Crypto

• Franklin Templeton is a trafi company with $1.5 trillion in assets.

• Sandy Cru, Senior Vice President of Franklin Templeton, shares her insights on crypto.

• The conversation explores how to explain crypto to trafi and why trafi has been resistant to crypto until now.

• Sandy believes that crypto adoption on Wall Street is inevitable.

• She expresses her preference for the Ethereum ETF over the Bitcoin ETF.

Message from Sponsors

A message from sponsors about dydx chain and its benefits for token holders.

Benefits of dydx Chain

• Dydx chain allows token holders to earn yield by becoming validators.

• Stakers have earned 15% over the last year, with $4.2 million of USDC distributed to over 11,000 stakers.

• Dydx has been the number one decentralized exchange (Dex) in terms of volume in crypto.

Reflections on the Episode

Personal reflections on the episode and Franklin Templeton's involvement in crypto.

Insights from the Episode

• Franklin Templeton has been involved in crypto for longer than expected, running validators and staking ETH natively.

• There may be more happening behind the scenes within Franklin Templeton's digital asset team than meets the eye.

• Questions remain about how Franklin Templeton will align with cypherpunk values and handle issues like AML/KYC regulations.

Concerns about Identity Focus

Discussion about concerns regarding identity focus within financial institutions like trafi.

Identity Focus and Concerns

• Larry Fink's mention of identity as an exciting aspect of crypto raises concerns.

• Sandy expresses her reservations about the focus on identity within trafi institutions.

Sponsors' Message

A message from sponsors about Kraken, a recommended exchange for crypto.

Kraken Exchange

• Kraken is a trusted exchange in the crypto industry, with over a decade of experience.

• They aim to accelerate global adoption of cryptocurrency for financial freedom and inclusion.

Introduction to Celo Layer 2

Information about Celo Layer 2 and its advantages for users.

Advantages of Celo Layer 2

• Celo Layer 2 is a mobile-first, EVM-compatible blockchain designed for real-world use cases like mobile payments and DeFi.

• It offers low gas fees and allows native payment using ERC20 tokens.

• Users can send crypto to phone numbers across wallets using social connect.

• The community's input is valued in shaping the future of Ethereum through Celo forums and Twitter engagement.

Token Grant Management with Toku

Introduction to Toku, a platform that simplifies token grant management.

Simplifying Token Grant Management

• Toku provides practical tools for handling token grants, easing the legal and tax obligations associated with providing grants to teams.

Token Distributions and Payroll Tax Compliance

This section discusses the role of toku in handling token distributions and payroll tax compliance for employees, contractors, advisers, and investors. They offer real-time tax calculations and can integrate with any payroll providers in any jurisdiction.

Toku's Services

• Toku handles token distributions and payroll tax compliance.

• They provide real-time tax calculations that can be done by toku or integrated into any payroll providers.

• Toku is a trusted provider for Protocol Labs, dydx Foundation, Mina protocol, and many more.

Introduction to Franklin Templeton

This section introduces Franklin Templeton as an investment management company that manages over 1.5 trillion in assets. They recently came out with a Bitcoin ETF and have plans for tokenization.

About Franklin Templeton

• Franklin Templeton is an investment management company.

• They manage over 1.5 trillion in assets.

• Recently launched a Bitcoin ETF.

• Have plans for tokenization.

Explaining Crypto to Traditional Finance

In this section, Sandy explains how she simplifies the concept of crypto to people in traditional finance. She compares it to the emergence of a network economy through platforms like Uber, Facebook, Google, etc., and highlights the shift towards open networks and protocols.

Simplifying Crypto for Traditional Finance

• Sandy explains crypto by comparing it to the emergence of a network economy through platforms like Uber, Facebook, Google.

• She highlights the shift towards open networks and protocols in the crypto space.

• Investing in open networks and protocols is done through coins issued by these platforms.

The Network Era 2.0

This section discusses the transition from a platform-based economy to a protocol economy in the crypto space. It highlights the innovation and growth potential of this new business model.

The Network Era 2.0

• We are transitioning from a platform-based economy to a protocol economy.

• In the protocol economy, platforms are open architecture and anyone can join.

• Investing in these open networks and protocols is done through coins issued by them.

• This new business model offers significant innovation and growth opportunities.

Articulating Crypto to Traditional Finance

Sandy shares her articulation of crypto as a platform-centric explanation that resonates with clients and customers of Franklin Templeton. She compares it to the hype around internet stocks in the 1990s.

Articulating Crypto for Traditional Finance

• Sandy's platform-centric articulation of crypto resonates with clients and customers.

• She compares it to the hype around internet stocks in the 1990s.

• Emphasizes that we may be under-hyping what is happening in the crypto space compared to overhyping internet stocks back then.

Underhyping Crypto in Traditional Finance

This section explores how traditional finance is underexposed to cryptocurrencies due to treating them differently than internet stocks in the past. It highlights the need for more education and understanding about the potential of crypto investments.

Underhyping Crypto in Traditional Finance

• Traditional finance is underexposed to cryptocurrencies compared to how they treated internet stocks.

• Only a small percentage of people are investing in crypto despite its potential.

• More education and understanding are needed about crypto investments.

Comparing Web 1, Web 2, and Web 3

This section draws a comparison between the evolution of the internet (Web 1 and Web 2) and the emergence of a protocol economy (Web 3) in the crypto space. It highlights the familiarity people have with the internet's transformative power.

Comparing Web 1, Web 2, and Web 3

• Draws a parallel between the evolution of the internet (Web 1 and Web 2) and the emergence of a protocol economy (Web 3).

• People are familiar with how the internet transformed business models.

• Crypto's protocol economy is similar to how platforms like Amazon or Facebook revolutionized industries.

The Skepticism Towards Internet in the '90s

This section discusses skepticism towards the internet in the '90s and how it parallels skepticism towards crypto today. It emphasizes that we may be underestimating crypto's potential due to its differences from traditional investments.

Skepticism Towards Internet in the '90s

• There was skepticism towards the internet in its early days.

• People struggled to understand its potential, similar to skepticism towards crypto today.

• Crypto's unique characteristics make it different from traditional investments, leading to underestimation of its potential.

Traditional Investors and Blockchain

The speaker discusses how traditional investors have started to show interest in blockchain technology but often separate the technology from the ecosystem it creates. However, there is a growing understanding that blockchain represents a new story of growth and innovation.

Traditional investors' perception of blockchain

• Traditional investors express interest in investing in blockchain but often fail to invest in the models created by blockchain technology.

• They are waiting for a transformation of blockchain into something familiar from the current world.

• The crypto domain has evolved significantly, making it easier for traditional investors to understand the emerging new story of growth.

• There is a possibility that platform companies from the web 2 era may also move towards embracing this new direction.

Resistance and Acceptance of Crypto Investments

The speaker reflects on how traditional financial firms were initially resistant to crypto investments but have become more open as society embraces futuristic technologies. Regulatory uncertainty, fiduciary responsibility, cultural resistance to change, and reliance on proprietary technology were some factors contributing to their initial resistance.

Reasons for resistance among traditional financial firms

• Fiduciary responsibility makes it challenging for firms like Franklin Templeton to operate in domains without clear regulations and consumer protection.

• Cultural resistance within traditional finance slows down their adoption of new technologies.

• It took years for these firms to embrace cloud technology, indicating their slow pace of change.

• Established financial firms have been operating for decades with a focus on proprietary infrastructure, making entry into new marketplaces relatively fast within 10 or 15 years.

• The speed at which crypto operates contrasts with the slower pace of traditional finance, causing a collision between two different worlds.

Convergence of Ingenuity and Controls

The speaker highlights the convergence of crypto's ingenuity with the understanding of consumer protection and controls that traditional finance has been comfortable operating within. This convergence is seen as a powerful result.

Convergence of crypto and traditional finance

• The ingenuity of the crypto domain is now merging with the necessary understanding of consumer protection and controls.

• Traditional financial firms are starting to embrace and understand crypto, resulting in a powerful combination.

• The collision between two different participants, one strolling along the stream (traditional finance) and the other running on a treadmill (crypto), is gradually coming together.

Stronger Reaction to Crypto

The speaker discusses the stronger reaction towards crypto compared to previous technological advancements like tech stocks in the 90s. They explore possible reasons for this reaction, such as lack of awareness or misconceptions about crypto being associated with fraud.

Reasons for stronger reaction towards crypto

• In contrast to previous technological advancements, there seems to be more doubt and resistance towards crypto.

• Traditional finance did not castigate tech stocks like they do with crypto, possibly due to misconceptions about Ponzi schemes and fraud.

• Lack of awareness or failure to keep tabs on the industry may contribute to this stronger reaction.

Crypto Disrupting Traditional Finance

In this section, the speaker discusses how cryptocurrency is disrupting traditional finance and the factors that contribute to people's negative response towards it.

Factors contributing to negative response

• The speaker believes that one of the reasons for the negative response towards cryptocurrency is the fear of disruption in traditional finance.

• Tokenization, which was mentioned in a previous report, replacing traditional equities and bonds over time, was seen as a threatening proposition by those whose core business revolves around equities and bonds. However, now it is transforming them rather than replacing them.

• The nomenclature used in the crypto domain, originating from cipher punks, can be perceived as radical and scary.

• Negative memories associated with early uses of Bitcoin on platforms like Silk Road have also contributed to the backlash against cryptocurrency.

Explaining Tokens in Traditional Finance

In this section, the speaker explains tokens to people in traditional finance and differentiates between various types of tokens.

Differentiating types of tokens

• Not all tokens are the same; there are different kinds with varying suitability for potential investment.

• Tokens that have a tieable relationship to a modelable economic revenue stream are considered suitable for investment as their growth can be understood and anticipated.

• Governance tokens and pure utility tokens may not have the same underlying investment case and may not be suitable for an investment portfolio but can still be fun investments or hold value within specific communities or networks.

• Focus is given to tokens that represent the growth of a revenue-tied modelable investment entity. Tokenomics analysis plays a crucial role in understanding these tokens.

Tokens as Financial Assets

In this section, the speaker discusses how tokens can be viewed as financial assets and their potential to be understood and valued by traditional finance.

Tokens as familiar financial assets

• Tokens that generate cash flows and have tried and true valuation models can be seen as familiar financial assets that traditional finance can understand.

• Starting with cash-flowing, suit-and-tie assets like MakerDAO, tokens can serve as a trojan horse to introduce Wall Street to the broader spectrum of crypto assets.

Franklin Templeton's Future Relationship with Tokens

In this section, the speaker discusses Franklin Templeton's current involvement with tokens and their plans for the future.

Franklin Templeton's Current Token Operations

• Since 2019, Franklin Templeton has been operating on public blockchains.

• They run their own node validators on networks they invest in, including staking ETH.

• They have a research team that conducts coin-level research and publishes it for their investors.

• They offer multi-coin model portfolios with live track records ranging from fully systematic to fully discretionary.

• They have a venture capital fund focused on early-stage investments in the ecosystem.

• Franklin Templeton created the first on-chain government money market fund called Benji, which has been trading since 2020.

Future Plans and Exploration

• Franklin Templeton is exploring new investment factors that emerge from network-driven business models.

• They see potential in tokenization as a way to democratize access to cultural assets like songs, films, music, and memes.

• Smart contracts can be used to simplify the administration of cash flows and rights across a large pool of investors.

• There are opportunities for corporations to issue new types of investments or monetize their data pools through tokenization.

Use Cases and Innovation in Tokenization

In this section, the speaker discusses various use cases for tokens and how traditional finance professionals may struggle to understand them.

Exciting Use Cases

• Tokens can represent money market funds with yields (e.g., dollars plus interest).

• Franklin Templeton has hundreds of millions invested in Money Market on the Stellar blockchain.

• Tokenization can democratize access to assets traditionally held by institutions (e.g., songs, films) through smart contracts.

Difficulty for Traditional Finance

• Traditional finance professionals struggle to understand tokens because they don't fit into existing categories.

• Tokens are often referred to as "chameleon assets" due to their ability to take on different forms and functions.

• The speaker mentions the example of Bitcoin in the form of an ETF, which challenges traditional financial frameworks.

Understanding Tokens and Their Categorization

In this section, the speaker discusses the categorization of tokens and their unique characteristics.

What is a Token?

• Tokens can have different characteristics such as being a commodity, currency, or security. However, some tokens don't fit neatly into any of these categories.

Unique Characteristics of Tokens

• Tokens have a chameleon-like nature, where they can exhibit characteristics of securities, commodities, and currencies. They possess decentralized features that do not align with traditional explanations.

• The way tokens are governed is new and differs from traditional financial instruments. Their usage in terms of composability allows for changes in functionality over time.

• When assets are locked into liquidity or staking pools, they transform into something else, generating revenue streams different from the original asset's value. This adds complexity to token categorization.

Tokenomics and Supply Schedule

• Traditional finance relies on supply schedules defined by extraction rates or production limitations. However, tokenomics introduces algorithmic issuance where supply is determined by code rather than external factors. This transparency can be challenging for traditional finance professionals to grasp.

• The supply schedule of tokens is often transparent and available on-chain, providing real-time information about insiders' lockups or new supply releases. This level of transparency differs from traditional markets that rely on quarterly reports for information dissemination.

Aha Moments and Opportunities

• Many individuals experience an "aha moment" when they understand the potential impact of crypto tokens in solving industry issues and changing existing systems. These moments contribute to bridging the gap between traditional finance and the crypto world.

The Power and Complexity of Tokens

This section explores the versatility and complexity of tokens, highlighting their ability to represent a wide range of assets.

Tokens as Chameleon Assets

• Describing tokens as chameleon assets can make it challenging to convince people about their potential. The broad definition of tokens leads to further questions rather than clear answers. However, this flexibility allows for the creation of various asset types within the crypto space.

Algorithmic Issuance and Token Spectrum

• Tokens offer the power to create a spectrum of assets with different characteristics. Developers can design algorithmically programmed tokens with unique supply schedules that cannot be easily adjusted or manipulated. This contrasts with traditional finance's reliance on external factors for supply adjustments.

Bringing Traditional Finance and Crypto Together

Regulators' Confusion and Lack of Consensus

The confusion among regulators regarding tokens and crypto assets has led to a lack of consensus on how to regulate this space. This confusion also affects the interpretation within the industry. The speaker wants to understand why institutions like Franklin Templeton are hesitant to fully embrace tokens.

Factors Preventing Institutions from Embracing Tokens

• Regulatory confusion and lack of clarity hinder institutions like Franklin Templeton from diving into tokens.

• Incremental approach is necessary due to regulatory relationships, investor appetite, and understanding.

• Education plays a crucial role in transforming institutional perception towards crypto assets.

• Alignment between traditional financial market infrastructure and crypto domain is essential for greater interoperability.

• Introduction of digital wallets and basic infrastructure is needed for institutional investors to allocate crypto assets in their portfolios.

Importance of Crowd Factors in Portfolio Construction

The speaker emphasizes the significance of crowd factors in portfolio construction as it helps institutions allocate crypto assets effectively. However, there are still some challenges that need to be addressed.

Challenges in Allocating Crypto Assets

• Institutional investors face difficulties allocating crypto assets due to uncertainty about hitting the right factors.

• Infrastructure development, such as crowd factors, is crucial for institutions to understand the risks associated with crypto investments.

Additional Information (Not Included in Transcript)

Crypto Tax Calculator

This section discusses the benefits of using Crypto Tax Calculator for managing crypto taxes.

Benefits of Crypto Tax Calculator

• Crypto Tax Calculator simplifies complex transactions and supports over 300,000 currencies, including Ethereum, Arbitrum, and Optimism.

• It allows users to easily calculate their tax obligations by connecting their wallets and following automated suggestions.

• The software also supports airdrop farmers by consistently adding support for new layer ones, layer twos, and airdrops.

• Key areas that Crypto Tax Calculator focuses on are identity solutions, compliance monitoring of wallets, and wallet technology interoperability.

• It enables consolidated portfolio views across traditional assets and new digital assets.

Wall Street's Interest in Crypto Startups

This section explores potential products or solutions that could interest Wall Street in the world of crypto startups.

Potential Products for Wall Street

• Identity solutions that improve attaching an identity to transactions to accelerate know your customer (KYC) and anti-money laundering (AML) processes.

• Compliance monitoring of wallets and understanding the origin of coins to bridge the gap between traditional finance (trafi) and crypto.

• Wallet technology interoperability to enable consolidated portfolio views across different accounts and assets.

• Building infrastructure for administering both traditional assets with long-term horizons and new digital assets within the same portfolio.

Convergence of Trafi and Crypto Cultures

This section addresses concerns about how traif (traditional finance) and crypto cultures may converge and the potential impact on the open financial system.

Convergence of Trafi and Crypto Cultures

• Some in the crypto community worry that traif's adoption of crypto use cases may lead to co-opting or replicating the traditional financial system.

• However, traif's involvement brings legitimization, capital flows, education, and valuation expertise to the crypto space.

• The challenge lies in finding a balance between an open financial system with innovation and regulation that benefits everyone.

Privacy, Censorship Resistance, and Critical Issues

This section discusses critical issues raised by the crypto domain regarding privacy, censorship resistance, and access to funds.

Critical Issues Raised by Crypto

• Concerns about privacy rights over personal data and avoiding censorship are important considerations.

• Changes in political regimes can impact people's access to funds and ability to transact.

New Section

In this section, the speaker discusses the need for new solutions that strike a compromise between traditional finance and the crypto domain. They mention the possibility of attaching identity to transactions temporarily to maintain privacy.

Finding Common Ground

• The speaker believes that better common ground will be found between regulators and the crypto community.

• Taking control of one's own data through blockchain technology is seen as an important social movement.

• The speaker predicts a shift towards more privacy and an end to unfettered access to personal data.

New Section

This section focuses on the challenges and potential solutions in aligning traditional finance with the crypto domain.

Addressing Concerns

• Currently, there is no option for choice when it comes to certain investor controls like KYC/AML.

• The speaker suggests exploring how new technology can satisfy concerns in both domains.

• Creative solutions may arise, but open dialogue is necessary.

New Section

Here, the conversation shifts towards engaging with traditional finance executives and regulators.

Collaboration with Regulators

• The speaker acknowledges that Bankless has conversations with regulators who listen to their perspectives.

• They express hope for alignment in finding a middle ground that preserves civil liberties while embracing encryption and decentralized validation.

New Section

This section addresses critiques of cryptocurrencies from traditional finance perspectives.

Chameleon Assets and Speculation

• Some critics argue that tokens are chameleon assets used for scams or speculative purposes.

• Traditional finance often views crypto as a casino rather than recognizing its potential value beyond speculation.

New Section

The speaker discusses how to address objections and misconceptions about crypto, especially when engaging with traditional investors.

Opening Minds to Possibilities

• Quoting Schopenhauer, the speaker emphasizes the importance of open-mindedness and dialogue.

• They highlight that traditional finance is not immune to making ridiculous statements.

• The decline in public equities and the shift towards private funds indicate existing problems in traditional securities markets.

New Section

This section explores the emergence of new business models and the need for change in existing security systems.

Embracing New Business Models

• The speaker points out that new business models may initially seem unconventional but can bring value and success.

• They highlight the shift from public to private markets due to accessibility limitations for average investors.

• Existing security systems face known problems that require attention and improvement.

Conclusion

The Value of Bitcoin's Network

In this section, the speaker discusses the growth and value of Bitcoin's network by comparing its transaction volume to that of Visa and MasterCard.

Bitcoin's Transaction Volume

• Bitcoin has reached a trillion transactions, surpassing the transaction volume of both Visa and MasterCard networks.

• This high transaction volume indicates that Bitcoin has a valuable network.

• Rational investors would agree that Visa and MasterCard have valuable networks, so it is logical to consider Bitcoin as valuable as well.

Moving the Dialogue Forward

The speaker emphasizes the importance of engaging in dialogue about cryptocurrencies and helping others understand their potential value.

Importance of Dialogue

• Engaging in dialogue is the first step towards acceptance and understanding of cryptocurrencies.

• Providing good explanations, facts, and patterns can help shift people's perception from resistance to acceptance.

• It may take time for people to fully grasp the concept, but continuous conversation will lead to increased understanding among the majority.

Impact of Bitcoin ETF on Conversations

The speaker discusses how the existence of a Bitcoin ETF has influenced conversations with traditional investment professionals.

Before vs. After Bitcoin ETF

• The introduction of a Bitcoin ETF marked a significant shift in conversations about cryptocurrencies.

• Traditional investment professionals now recognize the need for education and understanding in this space.

• While not all financial firms have fully embraced cryptocurrencies yet, there is growing interest and recognition that they cannot ignore this emerging asset class.

Ethereum Investment Opportunity

The speaker shares their belief that an Ether ETF may generate more demand compared to a Bitcoin ETF due to Ethereum's platform nature and potential for business growth.

Ethereum's Investment Story

• The investment story for Ethereum is considered stronger than that of Bitcoin due to various factors.

• Ethereum's platform nature attracts businesses and developers, leading to the growth of new indexes, swaps, and derivatives.

• Traditional financial participants value risk management tools associated with these developments.

• There is a broader investment narrative around Ethereum, making it easier to explain and understand compared to Bitcoin.

Outlook on Ether ETF Demand

The speaker agrees with the belief that an Ether ETF may experience higher demand compared to a Bitcoin ETF when discussing cryptocurrencies with financial firms.

Higher Demand for Ether ETF

• The speaker shares the thesis that an Ether ETF could generate more interest from traditional financial firms.

• Factors such as Ethereum's platform for apps, cash flows, and alignment with technology make it appealing to Wall Street investors.

• Conversations with financial firms are expected to reflect this higher demand for an Ether ETF.

Understanding the Staking Concept

The speaker discusses how concepts like the Open Alliance and Apple App Store can help people understand staking more easily. However, they also acknowledge that staking introduces complexity and may require additional education.

Staking as a Concept

• The speaker believes that staking will give people pause and introduce complexity to the conversation about cryptocurrencies.

• They mention that calculating rewards and returns in staking will further complicate understanding.

• Comparisons to familiar concepts like the Open Alliance or Apple App Store can make it easier for people to relate to staking.

Evolution from Blockchain to Layer One

The speaker shares their personal experience with Bitcoin and Ethereum, highlighting Ethereum as their "aha" moment. They emphasize the importance of understanding the transition from blockchain to layer one in explaining the protocol economy analogy.

Personal Experience with Ethereum

• The speaker mentions watching Bitcoin for many years but had their breakthrough moment when introduced to Ethereum.

• They believe that educating people about Ethereum is crucial in helping them understand the protocol economy analogy.

• Transitioning from a payment network (blockchain) to layer one (Ethereum) is an important concept for comprehension.

Education on Bitcoin and Ethereum

The speaker agrees with the idea that education plays a significant role in adoption. They discuss how education on Bitcoin has started due to Bitcoin ETFs, but similar efforts will be required for Ethereum once Ethereum ETFs become available.

Importance of Education

• The speaker acknowledges that education on Bitcoin has begun due to Bitcoin ETFs.

• They anticipate a similar need for education on Ethereum once Ethereum ETFs are accessible.

• Educating people about both Bitcoin and Ethereum is essential before explaining other future assets.

Educating People on Ethereum

The speaker believes that educating people about Ethereum will be as challenging as educating them about Bitcoin. They anticipate that once education on both Bitcoin and Ethereum is complete, explaining the broader space and future assets will become easier.

Challenges in Educating About Ethereum

• The speaker states that educating people about Ethereum will be equally challenging as educating them about Bitcoin.

• They believe that after education on both Bitcoin and Ethereum, explaining the broader space and future assets will become more manageable.

Staked ETH ETF vs. Vanilla ETH ETF

The speaker discusses the challenges associated with launching a staked ETH ETF compared to a vanilla ETH ETF. They mention regulatory hurdles and the need to update rules to accommodate modern products.

Challenges of Staked ETH ETF

• The speaker explains that the problem with launching a staked ETH ETF lies in the authorization under the 1933 act.

• Regulatory restrictions prevent including derivatives or swaps related to staking rewards.

• Finding a solution to this issue requires updating rules and regulations.

Updating Rules for Modern Products

The speaker agrees with the need to update rules and regulations to accommodate modern financial products like cryptocurrencies. They highlight how regulators are cautious due to long-lasting implications but express optimism about eventual progress.

Updating Rules for Modernization

• The speaker acknowledges the necessity of updating rules and regulations for accommodating modern financial products.

• Regulators' caution stems from knowing that these rules may remain in place for many years.

• Despite cautiousness, regulators are eager to learn, but progress can be slow due to outdated frameworks.

Structural Challenges in Traditional Finance

The speaker discusses the structural challenges faced by traditional finance when dealing with cryptocurrencies. They highlight the siloed nature of traditional finance and how it is not designed to handle assets like cryptocurrencies that can be multiple things at once.

Structural Challenges in Traditional Finance

• The speaker points out that traditional finance operates in silos, such as stocks, bonds, and commodities.

• Cryptocurrencies present a challenge because they can be multiple things simultaneously.

• The US financial system's more siloed nature adds an extra layer of confusion compared to other regulatory regimes.

Slow Progress and Need for Congressional Involvement

The speaker acknowledges the slow progress in cryptocurrency regulation and highlights the need for congressional involvement to update laws. They emphasize that regulators interpret existing laws but may require new legislation to address modern financial products adequately.

Slow Progress and Congressional Involvement

• The speaker agrees with the slow progress in cryptocurrency regulation, especially in the US.

• Regulators interpret existing laws but may need new legislation to accommodate modern financial products.

Congress and Regulatory Progress

The conversation discusses the progress made by Congress and regulators in interpreting new laws. It highlights ongoing discussions happening at The Regulators, different branches of Congress, key universities, and with crypto natives.

Progress in Interpreting Laws

• Congress is working to interpret new laws and fit them into existing ones.

• Ongoing conversations are happening every day at The Regulators, different branches of Congress, key universities, and with crypto natives.

• Other jurisdictions moving quickly on regulations will increase pressure for the US to find its own solutions.

Lightning Round: Overrated or Underrated

This lightning round asks for quick opinions on various topics related to cryptocurrency and finance.

Ethereum ETF

• Underrated: Expected to have a more transformative impact than people anticipate.

Central Bank Digital Currencies (CBDCs)

• Overrated: Particularly for developed nations with well-established government currency markets.

Stable Coins

• Well-rated: Enthusiasm exists but there is a need for oversight and regulation improvements.

Crypto Legislation in Europe

• Underrated: Implementation is still far off, but it will become a major point of discussion as the deadline approaches.

Impact of 2024 Elections on Crypto

• Overrated/Underrated: Impact may be less relevant over time as global pressure pushes for clearer regulations regardless of election outcomes. However, depending on the results, there may be a period of uncertainty in the US legislative process.

Sandy's Aha Moment

Sandy shares her personal journey in understanding cryptocurrencies. She initially found Bitcoin interesting but was unsure about its use cases. Her "aha" moment came when she learned about Ethereum's smart contracts and their potential to revolutionize asset governance and reconciliation processes in traditional finance.

Initial Thoughts on Bitcoin

• Found Bitcoin interesting but uncertain about its future and use cases.

Discovering Ethereum's Potential

• The concept of smart contracts, interoperability, and composability in Ethereum sparked Sandy's "aha" moment.

• Realizing that embedding contracts within assets could revolutionize asset governance and reconciliation processes.

Closing Thoughts

As the conversation concludes, Sandy reflects on the importance of bringing new perspectives into the crypto space to gain better articulations and insights. The impact of elections on regulations is discussed, emphasizing the need for clearer regulations regardless of election outcomes due to global pressure.

Impact of New Perspectives

• Bringing new people into the crypto space leads to better articulations and precise understandings from different backgrounds.

Elections and Regulations

• Regardless of election outcomes, global pressure will push for clearer regulations.

The Launch of Bitcoin ETFs

In this section, the speaker discusses their involvement in the launch of Bitcoin ETFs and their excitement about being part of the community.

The Idea and Understanding

• The speaker's team includes creative individuals who were aware of what they were getting into with the idea of launching Bitcoin ETFs.

• They wanted to honor the significance of the launch and were genuinely excited about it.

• Being part of the community, they understood the importance and implications of this development.

Bringing Worlds Together

This section highlights how bringing different worlds together can be challenging but is an essential part of evolution.

Evolution and Challenges

• Bringing different worlds together is important but not always a smooth process.

• It is natural for things to evolve in a non-linear manner, with ups and downs along the way.

• Despite challenges, the speaker's team was excited about their role in bridging gaps between different communities.

• They are proud of their work in supporting something they truly believe in.

Franklin Templeton's Brand Image

Here, the discussion revolves around Franklin Templeton's brand image within the crypto industry.

Positive Reception

• In contrast to previous experiences with big corporate Twitter accounts in the crypto industry being perceived as "cringe," Franklin Templeton's brand received positive feedback.

• The speaker commends them for not being cringe and instead being cool, earning a thumbs up from those leveraging their Twitter account on that day.

Appreciation for Shared Culture

This section expresses gratitude for shared culture and concludes with appreciation for having participated in the conversation.

Gratitude and Appreciation

• The speaker expresses gratitude for the shared culture and positive experience during the conversation.

• They appreciate the kind words and feedback received, which will be passed along to the team.

• As a gesture of appreciation, a link to Franklin Templeton's Twitter account will be included in the show notes for listeners to follow and enjoy their content.

Conclusion

The section concludes with final remarks about the conversation.

Final Remarks

• The speaker reiterates their enjoyment of the conversation and thanks the hosts for having them.