Arca’s David Nage on how regulatory scrutiny impacts risk investing in web3 – TechCrunch

The regulatory environment surrounding crypto is shifting in the States as the SEC targets big players in the Web3 world and promises to shake up normal business with aggressive measures.

This week we sat down with David Nage at Chain Reaction. Nage is a Principal at Arca, overseeing their early-stage funds with a focus on blockchain and digital assets. In this week’s podcast, we covered a variety of crypto-related topics impacting the Web3 venture capital world, including struggles with the blockchain gaming sector and a renewed SEC regulatory frenzy following this week’s report via an investigation by Coinbase.

You can listen to the full interview below.

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

Nage says that while regulators are pushing for investigations, many venture investors are only hoping they can provide more guidelines and ways for startup players to operate within legal boundaries while also taking advantage of the opportunities that lie within crypto. It’s a lack of guidance that has prompted many venture-backed startups to wait before dropping their own token, Nage says.

“Many of these founders understand that a token could offer an obvious benefit for the distribution and decentralization of the authority of the company and offer many positive economic incentives for the participants, but without regulatory clarity they push this in one fell swoop guarantee indefinitely,” says gnawing “So I think this clarity could be really useful for the thousands of founders out there looking to innovate in this space.”

While Nage has some complaints about how the regulatory landscape has evolved, he also notes that things have still evolved faster than he anticipated. “Think [back] In the crypto winter of 2018, senators would draft specific policies related to digital assets [today] is just a jump and bound and your mind just blows it’s amazing.

You can hear more of Nage’s interview by listening to our latest episode. Subscribe to Chain Reaction on Apple, Spotify or your alternative podcast platform of choice for weekly updates.

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