Key takeaways

• The crypto industry is gaining recognition and achieving its objectives, signaling a positive trajectory.
• Despite challenges, the infrastructure for crypto is evolving with a focus on modular solutions and interoperability.
• Bitcoin and stablecoins serve as alternatives to fiat currencies, each with unique advantages.
• The legacy banking system’s inefficiencies highlight the potential of blockchain technology to address opacity and risk.
• Tokenized assets are gaining traction, indicating a cultural shift in finance.
• Privacy in digital assets is becoming more relevant, allowing for compliance without revealing sensitive information.
• The SEC’s previous hostile approach had a chilling effect, but recent shifts suggest a more collaborative environment.
• Regulatory sentiment is shifting towards personal freedoms and civil liberties, impacting privacy discussions.
• The crypto industry is experiencing a shift where being crypto native is no longer a prerequisite for hiring.
• The perception of crypto as being tied to political figures could lead to backlash against the industry.
• Ethereum faces a critical decision between prioritizing decentralization and pragmatic needs.
• The next wave of demand in crypto is coming from newcomers, not just crypto-native users.

Guest intro

Jill Gunter is a prominent voice in the cryptocurrency space, currently serving as a key figure at Espresso, where she explores the evolving landscape of crypto technology and its implications for privacy and finance. Previously, she co-hosted the acclaimed podcast “What Grinds My Gears” on the Blockworks network, blending her Wall Street experience with insights from the crypto world. With a background that includes roles at Goldman Sachs and Slow Ventures, Jill brings a unique perspective on the intersection of traditional finance and digital assets, making her an influential commentator on the future of the industry.

Crypto’s growing recognition

• Crypto is increasingly recognized as a significant industry, achieving its objectives.

• I think that we are winning… crypto as a technology and dare I say as an industry… is winning

  — Jill Gunter

• The current state of crypto is ambiguous, with mixed signals about its success.

• Is crypto dead? This is the most viral case I’ve seen titled ‘crypto is dead’

  — Jill Gunter

• Infrastructure for crypto is evolving with a focus on modular solutions and interoperability.

• I’m a cofounder at Espresso, which is a blockchain infrastructure company

  — Jill Gunter

• The cynicism in the crypto space often stems from being too close to market dynamics.

• It’s so difficult… to take that step back and see the forest for the trees

  — Jill Gunter

Bitcoin and stablecoins as alternatives

• Bitcoin serves as an alternative to fiat currencies in specific niches.

• I think undoubtedly bitcoin has become that at least in some niches.

  — Jill Gunter

• Stablecoins may serve as a more effective alternative to fiat currencies than Bitcoin.

• I think stablecoins actually perhaps even more so than bitcoin.

  — Jill Gunter

• The legacy banking system’s inefficiencies create opacity and risk, which blockchain can address.

• The legacy plumbing of like each bank running its own individual database was terrible

  — Jill Gunter

• The rise of alternative financial assets indicates a cultural shift in finance.

• Democratizing the type of financial assets you can get on Wall Street has happened

  — Jill Gunter

The role of privacy in digital assets

• Privacy in digital assets is becoming more relevant, allowing for compliance without revealing sensitive information.

• You can do really interesting things with privacy and with compliance with zk

  — Jill Gunter

• We are entering an era where privacy-focused products will become possible due to digital assets.

• There’s a ton of these types of products that are going to become possible now

  — Jill Gunter

• Privacy is crucial for both personal freedoms and corporate interests.

• Privacy… melds the two because if you are an individual who really cares about personal freedoms

  — Jill Gunter

• Large global banks prioritize privacy from competitors rather than just from the government.

• If you are a large global bank you really care about privacy from your competitors

  — Jill Gunter

Regulatory shifts and their impact

• The SEC’s previous hostile approach had a chilling effect on the industry.

• Issuing subpoenas against entrepreneurs had a massive chilling effect

  — Jill Gunter

• The SEC’s recent shift could lead to a more collaborative environment for crypto companies.

• The SEC has thrown open its front door and started inviting crypto entrepreneurs

  — Jill Gunter

• Regulatory sentiment has shifted towards greater emphasis on personal freedoms.

• Sentiment has shifted dramatically in the kind of conservative direction

  — Jill Gunter

• Crypto has significantly rebalanced the conversation towards personal freedoms and empowerment.

• Crypto has had a great impact rebalancing the conversation towards personal freedoms

  — Jill Gunter

The evolving crypto market

• The crypto industry is experiencing a shift where being crypto native is no longer a prerequisite for hiring.

• We can teach them crypto, so there’s no longer this kind of unifying culture

  — Jill Gunter

• The next wave of demand in crypto is coming from newcomers, not just crypto-native users.

• The next wave of demand is coming from newcomers like corporates or new startups

  — Jill Gunter

• The most exciting growth in crypto is from developers and entrepreneurs who are not crypto native.

• Seeing that fresh blood kind of enter the space is the most bullish thing

  — Jill Gunter

• The flexibility of the L2 framework is appealing to newcomers who want to customize their environments.

• The flexibility that the L2 framework offers is really landing well with newcomers

  — Jill Gunter

Ethereum’s strategic crossroads

• Ethereum will face a critical decision between prioritizing decentralization and pragmatic needs.

• Ethereum is going to be forced into a tough reconciliation about decentralization

  — Jill Gunter

• Corporate players entering the crypto space are changing the priorities for infrastructure builders.

• Corporate players coming in changes the priorities for crypto infrastructure builders

  — Jill Gunter

• The crypto market will evolve to include more pragmatic applications alongside Bitcoin and Ethereum.

• We’re gonna have a lot of Spotify equivalents that get created here

  — Jill Gunter

• There will no longer be a crypto monoculture as the market diversifies.

• There is no longer going to be a crypto monoculture

  — Jill Gunter

The future of crypto infrastructure

• Infrastructure in crypto is durable and essential for liquidity.

• Infrastructure is really durable, and those elements are still around killing it

  — Jill Gunter

• Corporate chains are building on crypto rails, which is a notable trend.

• Everything you mentioned is building on crypto rails

  — Jill Gunter

• Building infrastructure in crypto is challenging but pays off in the long run.

• It’s not always been easy building an infra in crypto but it pays off

  — Jill Gunter

• The relationship between applications and infrastructure in crypto is cyclical.

• It always ebbs and flows between apps and infra

  — Jill Gunter

Privacy and data monetization

• The increasing legibility and actionability of financial transaction data is a significant shift.

• All of the reams of data about financial transactions are becoming legible

  — Jill Gunter

• Internet platforms will monetize financial data patterns, leading to significant implications for privacy.

• Every internet platform is going to be monetizing this and influencing you

  — Jill Gunter

• Privacy is crucial for both personal freedoms and corporate interests.

• Privacy… melds the two because if you are an individual who really cares about personal freedoms

  — Jill Gunter

• Large global banks prioritize privacy from competitors rather than just from the government.

• If you are a large global bank you really care about privacy from your competitors

  — Jill Gunter

Political influences on crypto

• The perception of crypto as being tied to Trump could lead to a significant backlash.

• It’s going to become a talking point that Trump launched Trump Coin

  — Jill Gunter

• The belief that crypto is financially benefiting the Trump family is a concern in Washington.

• The thing that’s gonna hold this industry back is that it is giving the Trump family billions

  — Jill Gunter

• The upcoming midterm elections may influence the visibility of crypto in mainstream media.

• The midterm elections in the US are coming up, which will be interesting

  — Jill Gunter

• Mainstream media is increasingly covering crypto, reflecting its growing relevance.

• You see so many more crypto-oriented articles in these publications

  — Jill Gunter