Arca’s David Neige on how regulatory scrutiny is affecting VC investment in web3

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The cryptocurrency-related regulatory environment is shifting towards the US as the SEC targets the big players in the web3 world with the promise of shaking up business as usual with aggressive action.

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This week on Chain Reaction, we caught up with David Neige. Neige is the director of Arca and oversees their early stage fund, with a focus on blockchain and digital assets. In this week’s podcast, we covered a variety of crypto topics impacting the web3 venture capital world, including the fight against the blockchain gaming sector and renewed regulatory fervor from the SEC following this week’s Coinbase investigation report.

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You can listen to the full interview below.

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In our conversation, Nage noted that the recent downturn has already provided many lessons for players in this space, but notes that some of the biggest explosions have disproportionately affected retail investors. “I wish we didn’t have to learn from failure as a society, but it seems like we do learn from failure and that’s how we grow and prosper,” Nage says.

Nage says that while regulators are pushing for investigations, many VCs are simply hoping they can provide more guidance and ways for startups to operate within the law using the opportunities inherent in cryptocurrencies. The lack of leadership has caused many venture capital-backed startups to wait and see before issuing their own token, Nage said.

“Many of these founders understand that a token can provide demonstrable utility for distributing and decentralizing company powers and can provide many positive economic incentives for those who participate, but without regulatory clarity, they push that aside. a warrant for an indefinite period, ”Nage says. “So I think actually this clarity can be really helpful for thousands of founders who want to innovate in this area.”

While Nage has some complaints about the way the regulatory framework has evolved, he also notes that things still moved faster than he expected. “Think [back] in the winter of 2018, senators will develop a specific policy regarding digital assets. [today] it’s just a jump and your brain just explodes, it’s amazing.”

You can listen to more of Neige’s interviews by listening to our latest episode. Subscribe to Chain Reaction Apple, Spotify or your alternative podcast platform to keep up with us every week.


Credit: techcrunch.com /

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