🔬 DRC: July Report

Digital Asset Cyber Innovation Center, CLARITY, The DRC Grant, Decentralized AI, and more.

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Welcome to the Decentralization Research Center report, a monthly briefing on events and research relevant to decentralization, DAOs and governance.

This Month’s Updates

Key Notes

Our proposal to establish a Digital Asset Cyber Innovation Center (DACIC) was included as Section 10904 of the updated CLARITY Act. We worked with Ribbit Capital, the Security Alliance (SEAL), and Chainalysis to build support for the provision and brief congressional offices on it. The DACIC would create a standing public-private coordination center spanning Treasury, Justice, Homeland Security, the FBI, the Secret Service, and Defense, alongside vetted private-sector partners, to address crypto-enabled illicit finance, cyber theft, sanctions evasion, and state-sponsored threats. It improves information sharing and operational coordination without imposing compliance obligations that public blockchain infrastructure cannot meet.

We joined the Blockchain Association and the Crypto Council for Innovation in advocating for Senate consideration of the CLARITY Act, meeting with Senate Banking Committee and national security staff on the bill's updated cybersecurity, law enforcement, and national security provisions. Our guidance focused on how those measures strengthen consumer protection and counter illicit finance without breaking the decentralized systems they touch.

The first round of DRC Grant financing has now come to a very successful close. We will be highlighting the work of the grantees over the next few months and look forward to sharing that work with you here, starting with the announcement that Anita Srinivasan presented her work with Daniel Chu, "Decentralized Identity for Agents," at this year's Science of Blockchain DAO Workshop. The question they take up, how an autonomous agent proves who it is and who stands behind it, runs through several items in this month's Rundown. It will certainly not be the last round so, if you’d like to be a participant going forward, stay tuned for more news. We anticipate announcing a new round in Q4 of this year.

Finally, a landmark report is now nearing completion. With over 30 interviews from experts in the field, three in-depth case studies, and a set of proactive policy recommendations, our report on alternatives to concentrated AI development is now in review. We very much look forward to sharing it with you in the fall.

The Full Rundown

Further reading from the space:

If you’re working on related research or would like to get involved in our work, please reach out to us via [email protected]. We’d love to hear from you!