Tushar Jain: Institutional interest in crypto remains strong during downturns, regulatory yield negotiations are crucial, and token projects face a four-year window to decentralize | Bell Curve

Regulatory shifts could redefine token classifications, impacting investor confidence and the future of crypto projects.

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Add us on Google by Editorial Team Apr. 6, 2026

Key takeaways

• Institutional interest in crypto remains strong despite market downturns.
• Regulatory negotiations over yield language are critical for the future of crypto regulation.
• Token projects may have a four-year window to decentralize to avoid being classified as securities.
• New regulations will require uniform disclosure forms for token projects and exchanges.
• The SEC’s disclosure requirements may hinder investor access to crucial information.
• The separation of token entities and foundations complicates business operations.
• Regulatory constraints increase operational friction in crypto startups.
• Token projects should focus on value accrual to the token itself rather than shareholder value.
• Legislative clarity can enable value capture at the token level without triggering securities law issues.
• Uncertainty around token issuance and governance affects investor confidence and valuations.
• The historical correlation between market performance and conference attendance is shifting.
• The regulatory landscape is evolving, impacting how token projects are classified and managed.
• Understanding the complexities of regulatory negotiations is crucial for crypto projects.
• Disclosure requirements are expected to be structured and enforced uniformly in the crypto market.
• The current regulatory environment presents unique challenges for crypto businesses.

Guest intro

Tushar Jain is Co-founder and Managing Partner at Multicoin Capital, a thesis-driven investment firm focused on tokens, crypto, and blockchain companies. Prior to Multicoin, he founded ePatientFinder, a healthcare IT company where he served as COO, raised over $10M in venture capital, and grew it to serve over 2 million patients. He co-authored Proof of Physical Work and publishes annual Crypto Theses reports analyzing token models and market trends.

Institutional interest in crypto during downturns

• The current institutional interest in the crypto market is significant, even amidst a downturn.

  — Tushar Jain

• Institutional engagement with crypto shows resilience despite market downturns.

• This is the first time that’s ever we bucked that trend in seven years.

  — Tushar Jain

• Historical correlation between market performance and conference attendance is changing.

• Largest ask we ever had when Bitcoin’s down 50% off the highs.

  — Tushar Jain

• Institutional bull market presence is perceived as very real.

• Institutional bull market thing is definitely very real.

  — Tushar Jain

• Understanding the historical trends helps in assessing current market dynamics.

Regulatory negotiations and yield language

• The ongoing negotiations over yield language are crucial for determining how crypto projects will be regulated.

  — Tushar Jain

• The banking lobby and crypto interests are negotiating over yield language.

• What’s been holding it up is this negotiation over yield language.

  — Tushar Jain

• These negotiations impact the regulatory framework for digital assets.
• Understanding regulatory discussions is key to navigating the crypto landscape.
• Yield language discussions are pivotal for future crypto project regulations.
• The outcome of these negotiations will shape the digital asset ecosystem.
• Regulatory clarity is essential for the growth and sustainability of crypto projects.

Token projects and securities classification

• Token projects will have a four-year period to decentralize to avoid being classified as securities.

  — Tushar Jain

• An exemption is expected for token projects selling under $75,000,000 worth of tokens.

• They’ll have four years to decentralize to a point where they’re not gonna be treated as a security.

  — Tushar Jain

• These regulatory changes will significantly impact token project strategies.
• Understanding the regulatory landscape is crucial for token projects.
• The four-year decentralization period provides a strategic window for projects.
• Classification as securities has major implications for token projects.
• Regulatory changes aim to provide clarity and structure for token projects.

Uniform disclosure requirements for token projects

• There will be a uniform form of disclosure required for token projects and exchanges under the new regulations.

  — Tushar Jain

• The SEC will work out the uniform disclosure form in rulemaking.

• Both issuers of tokens or originators of tokens will have some responsibility to do so for a set period of time.

  — Tushar Jain

• These disclosures are crucial for investor transparency and trust.
• Regulatory framework for disclosures impacts token projects and investors.
• Uniform disclosure requirements aim to standardize information across the market.
• Understanding disclosure requirements is key for compliance and transparency.
• The new regulations will shape how token projects and exchanges operate.

Impact of SEC disclosure requirements

• The SEC’s disclosure requirements are hindering investor access to crucial information.

  — Tushar Jain

• Excessive disclosure can lead to securities classification issues.

• If we give too much disclosure, the SEC is gonna claim that people are investing because of what I said.

  — Tushar Jain

• Regulatory requirements create barriers for investor decision-making.
• Understanding the regulatory environment is crucial for crypto businesses.
• Disclosure requirements can complicate value accrual discussions.
• Balancing disclosure with regulatory compliance is a significant challenge.
• The impact of disclosure requirements on investor access is a key concern.

The complexity of token entities and foundations

• The separation of token entities and foundations is unnecessary and complicates business operations.

  — Tushar Jain

• Merging token entities could provide market certainty and simplify operations.

• What if we just merge it all together and not waste our time and energy on a bunch of this theater.

  — Tushar Jain

• Understanding token structures is crucial for navigating the crypto ecosystem.
• Simplifying operations could enhance clarity and efficiency in the market.
• The current separation creates unnecessary complexity and operational friction.
• Strategic shifts in token structures could benefit the overall market.
• The complexity of token entities impacts business operations and market perception.

Operational friction in crypto startups

• The operational friction in crypto startups is exacerbated by regulatory constraints and organizational silos.

  — Tushar Jain

• Regulatory and structural issues create unique challenges for startups.

• Increasing the operational friction of building and scaling a business by a thousand fold.

  — Tushar Jain

• Understanding traditional vs. crypto business operations is essential.
• Organizational silos hinder communication and efficiency in startups.
• Regulatory constraints significantly impact startup growth and scalability.
• Overcoming operational friction is crucial for startup success in the crypto space.
• The impact of operational friction on business development is a key concern.

Value accrual in token projects

• Token projects should prioritize value accrual to the token itself rather than maximizing shareholder value.

  — Tushar Jain

• A properly constructed foundation can guide projects for network benefit.

• The value should accrue to the token itself.

  — Tushar Jain

• Understanding governance models in crypto projects is crucial.
• Shifting focus from shareholder to token value is a fundamental change.
• Value accrual strategies impact the future of crypto governance.
• The distinction between traditional and crypto governance is significant.
• Prioritizing token value can enhance project sustainability and growth.

Legislative clarity and value capture

• Legislative clarity can enable value capture at the token level without triggering securities law issues.

  — Tushar Jain

• Clarity in regulations facilitates innovation and value creation.

• Clarity does create an avenue for value capture to exist at the token level.

  — Tushar Jain

• Understanding securities laws is crucial for token projects.
• Regulatory clarity is essential for sustainable growth in the crypto space.
• Value capture strategies must align with regulatory frameworks.
• Legislative clarity impacts how token projects are structured and managed.
• The role of regulatory clarity in enabling innovation is significant.

Uncertainty in token issuance and governance

• The uncertainty around token issuance and governance affects investor confidence and valuations.

  — Tushar Jain

• Token foundations holding large portions of tokens create market uncertainty.

• There was always uncertainty of like are these tokens gonna hit the market.

  — Tushar Jain

• Understanding token foundations’ roles is crucial for market perceptions.
• Management of token supply influences market valuations and behavior.
• Investor confidence is impacted by governance and issuance uncertainties.
• Addressing uncertainty is key to maintaining investor trust and market stability.
• The impact of governance on market perceptions is a critical consideration.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.