“This was a stress test that the network passed with flying colors.” – 02:16
Kristin Smith, President of Solana Policy Institute, joins Remy Blaire to discuss the ongoing U.S. government shutdown, which has now entered its third week. She notes that the shutdown has surpassed the typical three-day average and could potentially break the record of 35 days set during former President Trump’s first term. Remy highlights the impact of the shutdown on the cryptocurrency market, particularly the delay in spot ETF requests and the lack of progress on the Clarity Act.
Kristin provides insights into the current state of the crypto market, especially following a significant liquidation event that resulted in over $19 billion in liquidations. Despite this turmoil, she emphasizes the resilience of decentralized finance (DeFi) technologies, particularly the Solana network, which has shown impressive performance with peak transaction processing exceeding 100,000 transactions per second and maintaining low fees during high traffic periods.
Kristin discusses the positive developments in the crypto sector throughout the year, including increased regulatory clarity driven by initiatives like the Genius Act and the SEC’s project crypto. She explains that these advancements are encouraging banks and asset allocators to explore crypto technologies more seriously, presenting a significant opportunity to enhance financial infrastructure.
The conversation shifts to the impact of the government shutdown on crypto policy discussions in Washington, D.C. Kristin explains that while the shutdown has temporarily stalled progress, legislative conversations around market structure and tax hearings are still ongoing in Congress. She expresses optimism that once the shutdown concludes, regulatory agencies will resume their important work.
Finally, Remy and Kristin touch on the status of Solana Exchange-Traded Products (ETPs), which are currently in a holding pattern due to the shutdown. Kristen shares her belief that the SEC’s recent approval of generic listing standards will facilitate the introduction of Solana ETPs, providing a valuable investment vehicle for those unable to hold crypto directly.