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VariantDAO 2.0 Product Ideas
From prediction markets to risk monitoring
VariantTokens Versus Equity
VariantDAOs 2.0
In 2014, Vitalik defined a DAO as follows:"an entity that lives on the internet and exists autonomously, but also heavily relies on hiring individuals to perform certain tasks that the automaton itself cannot do…"
VariantDAO 2.0 Product Ideas
From prediction markets to risk monitoring
VariantTokens Versus Equity
VariantDAOs 2.0
In 2014, Vitalik defined a DAO as follows:"an entity that lives on the internet and exists autonomously, but also heavily relies on hiring individuals to perform certain tasks that the automaton itself cannot do…"
The GENIUS Act is in the books, and Congress is working on market structure next. Crypto regulations are coming fast and heavy, which means we have our work cut out for us.
At Variant, we believe founders who understand the evolving policy landscape are the ones who will succeed in the marketplace. So, to help founders win, we’re strengthening our policy focus. That means interpreting policy developments in Washington to identify new opportunities, helping founders navigate those opportunities, and giving them hands-on help with product design strategies.
To assist with that, we’ve brought on Salah Ghazzal as Variant’s Policy Lead. Salah managed legislative efforts at the Blockchain Association and understands the GENIUS Act inside and out — because he helped shape it.
Below, I give the full rundown of what Variant’s supercharged policy approach means for founders. Then, Salah provides a deep dive on the GENIUS Act’s open questions for founders, and Salah and Felix Protocol founder Charlie Ambrose give recommendations for moving perpetual derivatives regulation forward.
Enjoy!
- Jake
Policy Is the New Edge
You know the saying: first they ignore us, then they laugh at us, then they fight us, then we win.
The GENIUS Act is in the books, and Congress is working on market structure next. Crypto regulations are coming fast and heavy, which means we have our work cut out for us.
At Variant, we believe founders who understand the evolving policy landscape are the ones who will succeed in the marketplace. So, to help founders win, we’re strengthening our policy focus. That means interpreting policy developments in Washington to identify new opportunities, helping founders navigate those opportunities, and giving them hands-on help with product design strategies.
To assist with that, we’ve brought on Salah Ghazzal as Variant’s Policy Lead. Salah managed legislative efforts at the Blockchain Association and understands the GENIUS Act inside and out — because he helped shape it.
Below, I give the full rundown of what Variant’s supercharged policy approach means for founders. Then, Salah provides a deep dive on the GENIUS Act’s open questions for founders, and Salah and Felix Protocol founder Charlie Ambrose give recommendations for moving perpetual derivatives regulation forward.
Enjoy!
- Jake
Policy Is the New Edge
You know the saying: first they ignore us, then they laugh at us, then they fight us, then we win.
This is the story of crypto policy over the last four presidential administrations. In the Obama years, barely anyone in Washington knew what crypto was. By the first Trump term, it was mostly considered a joke. Under Biden, it was seen as a threat to be destroyed. Now, at the start of Trump 2.0, crypto is ascendant. The United States has adopted a whole-of-government approach to upgrade the financial system with public blockchains. Institutions are working to integrate this technology into their businesses. Founders can feel safe building here at home. The floodgates have opened.
I joined Variant in January 2024 with one goal — to help founders develop strategies that would enable them to succeed in the U.S. market. Back then, the path forward meant complex structuring and soaring legal costs to develop products that could withstand scrutiny from hostile regulators. Today, it means syncing design decisions with policy developments in D.C. so that products can benefit from regulatory clarity and grow as big and fast as possible.
To win in this market, founders must understand the changing policy landscape before their competitors do. At Variant, our priority is to help founders make strategic decisions that give them an edge, and policy is the new edge. For that reason, we’re doubling down on our policy work and ramping up our ability to support portfolio companies with actionable insights and resources they won’t get anywhere else.
Ideas and perspectives from the team
Salah Ghazzal: How to Act Like a GENIUS
Whether you cheered the GENIUS Act or jeered it, the reality is the same: the rules have changed. For the first time, crypto founders, banks, and platforms have a clear sense of what compliant issuance looks like — who can issue, how reserves must be held, and what standards apply. However, much is still unsettled; the law sets the framework, but how the implementing regulations are written will decide how it really works in practice.
Salah Ghazzal & Charlie Ambrose (Felix Protocol): Bringing Perps to the People: A Proposal for Perpetual Futures Regulation in the U.S.
Although perps have largely been unavailable to U.S. retail traders due to their perceived risk, they have many of the same benefits as traditional hedging vehicles, which is why they’re booming offshore. In other words, they aren’t merely mass gambling tools for people trying to get rich quick, but can actually help traders reduce risk. They should be regulated accordingly.
Recent posts from Variant’s policy team
Jake thinks the government shutdown is both good and bad for crypto:
Salah has some tax code recommendations:
Disclaimer: All information contained herein is for general information purposes only. It does not constitute investment advice or a recommendation or solicitation to buy or sell any investment and should not be used in the evaluation of the merits of making any investment decision. It should not be relied upon for accounting, legal or tax advice or investment recommendations. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment. None of the opinions or positions provided herein are intended to be treated as legal advice or to create an attorney-client relationship. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by Variant. While taken from sources believed to be reliable, Variant has not independently verified such information. Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by Variant, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Variant (excluding investments for which the issuer has not provided permission for Variant to disclose publicly as well as unannounced investments in publicly traded digital assets) is available at https://variant.fund/portfolio. Variant makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. This post reflects the current opinions of the authors and is not made on behalf of Variant or its Clients and does not necessarily reflect the opinions of Variant, its General Partners, its affiliates, advisors or individuals associated with Variant. The opinions reflected herein are subject to change without being updated. All liability with respect to actions taken or not taken based on the contents of the information contained herein are hereby expressly disclaimed. The content of this post is provided "as is;" no representations are made that the content is error-free.
This is the story of crypto policy over the last four presidential administrations. In the Obama years, barely anyone in Washington knew what crypto was. By the first Trump term, it was mostly considered a joke. Under Biden, it was seen as a threat to be destroyed. Now, at the start of Trump 2.0, crypto is ascendant. The United States has adopted a whole-of-government approach to upgrade the financial system with public blockchains. Institutions are working to integrate this technology into their businesses. Founders can feel safe building here at home. The floodgates have opened.
I joined Variant in January 2024 with one goal — to help founders develop strategies that would enable them to succeed in the U.S. market. Back then, the path forward meant complex structuring and soaring legal costs to develop products that could withstand scrutiny from hostile regulators. Today, it means syncing design decisions with policy developments in D.C. so that products can benefit from regulatory clarity and grow as big and fast as possible.
To win in this market, founders must understand the changing policy landscape before their competitors do. At Variant, our priority is to help founders make strategic decisions that give them an edge, and policy is the new edge. For that reason, we’re doubling down on our policy work and ramping up our ability to support portfolio companies with actionable insights and resources they won’t get anywhere else.
Ideas and perspectives from the team
Salah Ghazzal: How to Act Like a GENIUS
Whether you cheered the GENIUS Act or jeered it, the reality is the same: the rules have changed. For the first time, crypto founders, banks, and platforms have a clear sense of what compliant issuance looks like — who can issue, how reserves must be held, and what standards apply. However, much is still unsettled; the law sets the framework, but how the implementing regulations are written will decide how it really works in practice.
Salah Ghazzal & Charlie Ambrose (Felix Protocol): Bringing Perps to the People: A Proposal for Perpetual Futures Regulation in the U.S.
Although perps have largely been unavailable to U.S. retail traders due to their perceived risk, they have many of the same benefits as traditional hedging vehicles, which is why they’re booming offshore. In other words, they aren’t merely mass gambling tools for people trying to get rich quick, but can actually help traders reduce risk. They should be regulated accordingly.
Recent posts from Variant’s policy team
Jake thinks the government shutdown is both good and bad for crypto:
Salah has some tax code recommendations:
Disclaimer: All information contained herein is for general information purposes only. It does not constitute investment advice or a recommendation or solicitation to buy or sell any investment and should not be used in the evaluation of the merits of making any investment decision. It should not be relied upon for accounting, legal or tax advice or investment recommendations. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment. None of the opinions or positions provided herein are intended to be treated as legal advice or to create an attorney-client relationship. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by Variant. While taken from sources believed to be reliable, Variant has not independently verified such information. Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by Variant, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Variant (excluding investments for which the issuer has not provided permission for Variant to disclose publicly as well as unannounced investments in publicly traded digital assets) is available at https://variant.fund/portfolio. Variant makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. This post reflects the current opinions of the authors and is not made on behalf of Variant or its Clients and does not necessarily reflect the opinions of Variant, its General Partners, its affiliates, advisors or individuals associated with Variant. The opinions reflected herein are subject to change without being updated. All liability with respect to actions taken or not taken based on the contents of the information contained herein are hereby expressly disclaimed. The content of this post is provided "as is;" no representations are made that the content is error-free.
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The GENIUS Act is shaping the future of crypto policy and presents both opportunities and challenges for founders. At Variant, the focus is on empowering founders to navigate this evolving landscape, with the appointment of Salah Ghazzal as Policy Lead providing invaluable insights into legislative developments. The latest blog post details how Variant supports crypto founders with strategies for success and an overview of the GENIUS Act. Dive in for more on how to leverage policy as a competitive edge, from @variant.