Web3 avec Anouk Feb. 6–10, 2023
Welcome to Web3 avec Anouk! I’m Anouk, a crypto enthusiast with a huge passion for the world of Web3 – which I’ve been following since 2019. Every Friday, I share my take on the crypto news of the week in this newsletter. Subscribe for email updates!
The SEC Crack Downs on Kraken’s Staking Services
This is a new blow for the industry — Gary Gensler, SEC Chief, warned other companies offering ‘yield-earning programs’ to ‘take note’ and register their services with the SEC.
As the SEC’s scrutiny on the crypto industry becomes more intense, this move could lead to a wider crackdown. Brian Armstrong, CEO of Coinbase, defended ‘staking’ in a tweet on Wednesday and believed the SEC ruling against this service would be a “terrible path for the U.S.’. If enforced, this would put further pressure on crypto exchanges’ staking offerings and proof-of-stake blockchains, such as Ethereum.
In his series of tweets, Brian Armstrong called for the U.S. government to work towards creating a framework to support technology growth, rather than proposing ‘unclear rules’ that will further slow down innovations in the country.
Are NFTs Art? Hermès Says No
The luxury fashion brand Hermès battled in court against NFT project ‘MetaBirkins’ lead by Mason Rothschild, an artist who created digital versions of the iconic Birkin bag. Hermès sued Rothschild on the basis that these NFTs were a violation of trademarks laws — and, on Thursday, jurors agreed. The verdict found that these tokens had to be subject to strict trademark laws which prevent appropriation.
Essentially, it means that first amendment protection didn’t apply to these digital creations, and that they’re not ‘protected speech’, as is the case with other artwork. This is a major blow for the NFT community as digital artists have been trying to establish their creations as ‘art’ to the mainstream crowd, while also distinguishing themselves from commodities. This case sheds light on how new technologies and Web2 brands often collide in understanding the current state of the market.
In a statement released after the trial, MetaBirkins’ creator stated that this verdict was ‘wrong’
‘What happened today will continue to happen if we don’t continue to fight.’
Sure thing, the NFT industry will have to continue to battle to legitimize their art to the mainstream public.
The State of DAOs in 2023
In 2022, DAOs gained incredible popularity and the momentum kept on throughout the year — In June 2022, there were 6,000 registered DAOs, compared to 700 in May 2021.
So how will that increase play out in 2023? Will 2023 be the year of the DAO?
Creating a decentralized autonomous organization has never been easier, but running one is more complicated. From a legal standpoint, DAOs usually encounter a number of issues; including not being treated as a person in the eyes of the law. This means that the entity can’t do basic organizational tasks such as signing contracts, or even hiring employees. DAOs have certain limitations that prevent them from being fully compliant.
In 2023, DAOs’ legal framework could be easier to understand: for example, several jurisdictions such as Vermont and Wyoming have created blockchain and DAO-based LLC, which would ease the legal processes. Jurisdictions regarding DAOs are still in their early stages, and for most part, they might impose additional pressure on these entities. But in the upcoming year, we can hope for a more refined legal framework which could propel DAOs to new heights.
Thanks for reading! Check in next Friday for the next edition of this weekly quick take on Web3, crypto and blockchain discussing the week ahead.
