In recent posts, we embarked on an effort to quantify crypto and digital assets enforcement and regulatory impacts and outcomes as they emerge in 2023. In this post, we turn to the recent headlines about and the organizational behavior of the Securities and Exchanges Commission (SEC), namely the SEC’s Division of Enforcement’s Crypto Assets and Cyber Unit.
Federal Reserve Board issues policy statement to promote a level playing field for all banks: Includes guidances on ‘crypto-assets’
The Federal Reserve Board has issued a policy statement to promote a level playing field for all banks under its supervision, regardless of deposit insurance status. The statement clarifies that both uninsured and insured banks will be subject to the same limitations on activities, including those related to crypto-assets. The
In the Bitzlato Case, the Crackdown on Crypto Exchanges and Russian Cybercrime Activities are One in the Same
The Biden administration debuted a new power yesterday for fighting Russian cybercrime and rolled out the first major public move of a new government team devoted to battling the illicit use of cryptocurrency. Both steps came as part of an international effort to punish Bitzlato, a cryptocurrency exchange that U.S. authorities say helped criminals profit from ransomware attacks and drug trafficking.
OODAcon 2022: The Future of Money
Panel Description: Ten years ago, resilient cryptocurrencies did not exist, yet today the infrastructure to create them is available to anyone. The blockchain is often described as having the potential to be more disruptive than the Internet itself and the rules of finance are being rewritten every day. This session takes you through the good, bad, and the ugly of cryptocurrency and blockchain and highlights issues that will drive the next five years of blockchain. Are we in a period of Creative Destruction and what will emerge in the future?
9% of the World’s Cryptocurrency Computing Power is in Texas; Crypto Miners Power Down During Heat Wave
This post is a really interesting convergence of a few OODA Loop research vectors: crypto miners, drought/heat wave conditions, energy policy, risk awareness, and decision-making.
To start, the reason Texas ends up in the national headlines (and is tracked as a bellwether during this now consecutive, seemingly now annual record-breaking mid-summer heat waves) is that the state is an example of what statisticians call “extreme sampling”: the Texas electrical grid “does not connect to other states’ grids, and can’t take power from them in emergencies. [As a result], during a 2021 winter storm, power demand exceeded supply and over 200 people died.” Whatever your working definition of operational resiliency may be, the Texas energy ecosystem is not it.
In early April, we began our research and analysis of crypto and blockchain security initiatives by tracking down the best-in-class research efforts and subject matter experts to explore the formative core issues surrounding the topic. In our initial post, we explored the recent blockchain bridge heists, growing national security concerns, and The Secure Blockchain Initiative at Carnegie Mellon. Since April, the crypto market has been described euphemistically as “experiencing significant downside pressure” or “had a very bleak May” – while most have proclaimed a full-on crash. The WSJ declared in mid-May that $1 trillion of crypto vanished in just six months – while still others argue that the digital assets were overpriced and ripe for such a correction.
Trust is central to monetary systems, especially in ecosystems designed for the capture, storage, and transaction of value. Trust continues to be shattered in the world of crypto, DeFi, and blockchain business models across a variety of industry verticals as security vulnerabilities and hacks continue to plague the technology.
Promising Research and Analysis Topics and Projects Emerge from the April 2022 OODA Network Member Meeting
To help members optimize opportunities and reduce risk, OODA hosts a monthly video call to discuss items of common interest to our membership. These highly collaborative sessions are always a great way for our members to meet and interact with each other while talking about topics like global risks, emerging technologies, cybersecurity, and current or future events impacting their organizations. We also use these sessions to help better focus our research and better understand member needs. This month’s call was marked by more than the usual number of follow-up commitments on what were clearly promising ideas and projects with great potential for OODA Loop research and analysis (and are also a bit more time-sensitive than usual due to the crisis conditions in Ukraine).
In 2022: $1B in Crypto Blockchain Bridge Heists, Growing National Security Concerns and the Secure Blockchain Initiative
Like our broad research and analysis efforts last year regarding dis- misinformation and cognitive infrastructure, this year we embark on what academia calls a “literature review” on the topic of crypto and blockchain security initiatives – which begins with tracking down the best-in-class research efforts and subject matter experts to explore how they are “framing and naming” the core issues. Blockchain shows great promise for the future of identification and security protocols. For now, however, what trumps the potential cybersecurity applications of the blockchain is the conventional wisdom that the entire crypto ecosystem has serious middleware challenges – and growing direct security vulnerabilities in the blockchain design and architecture itself.
While most of the world watches in horror as Vladimir Putin advances his military invasion of Ukraine, Russia’s congruent foray into Bitcoin, gold-linked rubles and central bank digital currencies is triggering a conflicted response from financial technology and crypto enthusiasts. On one hand, the moves by Russia vindicate and legitimize alternative-money
To help members optimize opportunities and reduce risk, OODA hosts a monthly video call to discuss items of common interest to our membership. These highly collaborative sessions are always a great way for our members to meet and interact with each other while talking about topics like global risks, emerging technologies, cybersecurity, and current or future events impacting their organizations. We also use these sessions to help better focus our research and better understand member needs.
The March call was held on Friday, March 18th, and was organized around five scenarios for the end of the war in Ukraine.