The dynamic interplay between regulation and innovation in the digital assets space took center stage during the recent panel discussion, “Policy & Innovation — The Intersection of Regulation and Digital Assets.” Moderated by Nicole Dyskant, Senior Advisor, Taxbit with panelists:
- Maurício Magaldi, Head of Product, Input Output
- Caroline Malcolm, Policy & Practice Visitor, Institute for Ethics in AI
- Dea Markova, Director of Policy, Fireblocks
- Emelie Moritz, CEO, Safello
- Alex Wu, Policy & Government Relations Lead, Stellar Development Foundation
The panel explored how regulation is evolving in a rapidly changing financial and technological landscape, and how policymakers and builders can better align.
Policy as a Driver of Innovation
Nicole kicked off the session with an intriguing remark: “I think it’s really trendy right now to hear policy. I think it reminds me of compliance 20 years ago, right? So it’s like policy all over.” This set the tone for an engaging conversation on the new relevance of policy in shaping the future of digital assets.
One of the most striking takeaways came early on from Caroline: “I actually think the policy function has like a much more important role in thinking like much more longer term about where the opportunities are for the business… what are the new products that we could build?” She emphasized the need to look beyond compliance and view policy as a tool for business development.
Nicole built on that idea, saying, “I love that thinking about policy as a product, right? As a business per se and not only supporting business but also supporting business to see ahead.”
Policy in a Decentralized, Always-On World
Mauricio, bringing both a product and podcasting perspective, added color with, “This is borderless 24 seven, natively digital permissionless and decentralized paradigm. It is a lot to take in.” He humorously admitted, “I’m happy I’m not a regulator because it’s damn hard work to understand what these things are.” But the serious message beneath the joke was clear: “If you’re a regulator in the space and you’re not on chain, you will have a very hard time understanding what’s coming for you.”
The panel agreed that collaboration is essential. “Part of the obligation of the industry is helping regulators meet that challenge,” Caroline said. “Because if we don’t you’re not going to get the implementation that you actually want, you’re not going to get the outcomes and your business is going to be stunted.”
Building for Global Compliance
As Alex noted, it’s also about understanding the regulator’s mindset: “You have to kind of understand their perspective… they’re thinking about consumer protection… it’s hard to not be over ecstatic and excited… but you have to craft it in a way that they understand why it’s relevant.”
In the U.S., regulatory shifts are happening. “They’ve kind of taken back a lot of lawsuits against like Ripple and Coinbase, and Uniswap,” Alex explained. He also cited the reversal of prohibitive guidance from the OCC and upcoming stablecoin legislation: “The White House wants to see this passed by August and it’s pretty likely that will actually happen.”
Europe and MiCA: Promise vs. Practice
Nicole described the European MiCA rollout as hands-on: “We handed in our MiCA application last week and I think it was… like 1,500 pages or something.” However, she pointed out that harmonization doesn’t mean uniformity: “Even though we have a harmonized regulation in Europe, it’s really up to its regulator… the regulator is very hostile towards crypto and has always been.”
Nicole also flagged potential industry shakeups: “There will be a lot of consolidation going forward.”
The Global Perspective
Daya shared insights from global engagements, noting, “The growth story for crypto was successfully bought and sold to the European Commission, but it was not successfully sort of sold to member states.” She added, “This has to be a conversation about economic growth… jobs… tax.”
Looking at Asia-Pacific, she noted, “I did not appreciate to what extent the permissiveness towards stable coins in Japan… the openness of the Australian market… is taking a cue from the U.S.”
Caroline later highlighted what may be the biggest trend yet: “If I was thinking what is the one biggest development that will affect the crypto industry… it has to be what is going on in terms of the changing geopolitical environment.”
Privacy, AI, and the Future
Mauricio introduced the privacy dimension: “Everyone is entitled to their privacy, right? Privacy is a human right in the digital era.” He added, “Blockchains could potentially comply to the privacy laws like GDPR or LGBT in Brazil.”
On the intersection with AI, he joked, “AI needs blockchain because in a world where nothing is intellectual property, why would I create anything new?”
Caroline wrapped things up, noting, “Almost 80 percent of banks already using AI… and very similar in the crypto space.” With regulatory frameworks like the EU AI Act looming, she likened the challenge to DORA: “Now we have to go back and rethink all these things we’ve been doing.”
Final Thoughts
Nicole left the group with a clear-eyed observation: “There is a narrative that I would have hopefully forgotten but it’s coming back… where’s your data. Is it in my country?” The group agreed that engineering logic must guide policy, especially in a world built on decentralization.
The panel closed with gratitude, humor, and a shared understanding that regulation isn’t the enemy of innovation—done right, it’s the fuel.
To learn more, watch the full panel discussion on demand today.
