The co-founder of Avail, Anurag Arjun, applauds the recent move by U.S. regulators to take a positive view of decentralized finance (DeFi). In closing, Arjun points to the SEC commissioners’ vigorous rebuttal of the SEC’s anti-self-custody stance as a bright spot. We get into their discussions on innovation sandboxes for DeFi. He dreams in color about this level of transparency and then points out how this would have been literally unimaginable just a year earlier. Arjun considers this shift a hopeful sign for the industry. He thinks the U.S. is opening opportunities for other countries to do regulatory framework change to adjust to the fast moving DeFi world.

Arjun's Background and Avail's Mission

Anurag Arjun is a co-founder of Avail. This project seeks to be the common, single base layer that gives rollups the ability to reach horizontal scale. With Avail, rollups can share liquidity, move assets trustlessly, communicate permissionlessly and enjoy multi-token economic security. Arjun first jumped into the blockchain space back in 2017. Since then, he has continued to make groundbreaking contributions to the field.

Prior to Avail, Arjun founded Matic Network in 2017, which eventually metamorphosed into Polygon Labs. He also has very deep, practical knowledge of blockchain technology and its potential. This expertise fueled his passion to launch Avail within the Polygon ecosystem back in 2020. In March 2023, we spun out Avail as an independent project. This move is meant to let Avail focus more deeply on its strategic objectives.

Arjun’s broad skillset makes him an invaluable asset to our team. Jason applies his experience and research, economic, and engineering backgrounds toward making Avail an innovative leader within the industry. Featured as the second speaker is Arjun Gupta, a longtime successful entrepreneur. Outside of his blockchain work, he’s built successful startups in varied industries, from cash flow lending to regulatory technology. This experience gives him a closer look at the challenges and opportunities that the DeFi sector is currently navigating, allowing him to provide a unique perspective.

A Shift in Regulatory Perspective

Arjun’s surprise and optimism towards the retreating position of U.S. regulators on DeFi is palpable. He notes that in recent months SEC commissioners have publicly advocated for self-custody of one’s assets. Their rethinking of innovation sandboxes is a long overdue development away from their prior positions. If you ask Arjun, that kind of transparency from regulators would have sounded improbable even a year ago.

He notes that express openness from regulators was something few thought possible just a few years ago. This shift suggests a growing recognition of the potential benefits of DeFi and a willingness to explore ways to foster innovation while mitigating risks. We are unbelievably excited to welcome Arjun as a Senior Blockchain Engineer. It is his deep understanding of the regulatory challenges facing the industry that underscore his own perspective’s importance.

Now more than ever, Arjun’s comments illustrate the necessity for continued constructive dialogue between regulators and industry participants. Through thoughtful dialogue, education, and an openness to exploring creative solutions to compliance, regulators can help create the supportive ecosystem that DeFi needs to thrive. This balanced approach spurs innovation while defending investors and upholding the integrity of the financial system.

U.S. Leadership and Global Implications

That change in attitude here in the U.S. has big implications, according to Arjun — implications felt around the world. He claims that what happens in the U.S. has a ripple effect on other countries. Right now, the U.S. is showing a lot of leadership in this space. This provides a roadmap that other countries can tailor to their own regulatory environments.

For Arjun, the important thing for regulators in other countries is to take the U.S. shift as an opportunity to learn and adapt. By studying the U.S. approach, other nations can develop their own strategies for regulating DeFi in a way that promotes innovation while addressing potential risks. This collaborative approach is crucial to ensuring a more consistent and predictable regulatory landscape for the emerging global DeFi industry.