The Digital Freedom Alliance

and my Appearance on Tucker Carlson Tonight

Many of you may be receiving this newsletter after my appearance on Tucker Carlson Tonight last night.

If you missed that, you have read my candid thoughts on crypto's emergence as a political football in the US. For the past six months, I have studied crypto’s DC policy infrastructure and written frequently about the dynamics, both on Twitter and in our annual Crypto Theses. I will be spending more time on US crypto policy in 2022. Below, I’ll explain how I am getting involved, why this is important, and what this means for my company, Messari.

I'll go in reverse order.

Messari is an apolitical crypto data and research startup with a politically active founder: yours truly. As a company, we want what is best for the crypto ecosystem and its users. I believe we've been effective at educating investors, promoting smarter participation in these novel markets, and calling out bad actors over the past five years. The work we do on crypto transparency and plain-English market insights helps hundreds of enterprises, thousands of professional subscribers, and millions of casual investors. Our library of free, evergreen asset research is deeper than that of any other crypto information business (or regulator).

To the extent Messari goes beyond information services and engages actively in policy, we will never go it alone. We have aligned with the top crypto policy groups in the US: The Blockchain Association (trade association), Coin Center (think tank), and GMI PAC ("soft money" political action committee). We believe in presenting a united front on most crypto policy issues.

Still, as an industry, we are missing something: an individual member-led, activist-oriented advocacy organization and a connected political committee, or “PAC”, that is subject to limits under federal campaign finance law both in the contributions it receives (which can come from individuals only) and in the contribution it makes to candidates.

Today, the goals of corporate-backed policy organizations are largely aligned with users and individuals. But:

1) that may not always be the case, and

2) corporate-backed groups will pull punches when needed given the nature of their members' regulated businesses. It is difficult to mount aggressive defenses against government overreach when you are facilitating centralized (or decentralized) financial services, or when you are affiliated with a specific token community. In addition, it may be outright impossible to actively campaign for pro-crypto politicians when their non-crypto positions are otherwise controversial to your end users.

My stance has been that the opposite of "politics at work" isn't "no politics", but "unabashed, pro-crypto politics."

I am a single-issue, independent voter. My political party is crypto because I have no allegiance to either incumbent party. Both have poorly represented my values and policy positions for as long as I've been eligible to vote. There are millions of voters like me, and they need an outlet to channel their energy beyond Twitter, so we can achieve political results.

That's why I am starting the Digital Freedom Alliance.

The Digital Freedom Alliance (the “DFA”) "started" as a tweet last August. Engagement around the idea sparked my journey into US crypto policy, culminating with a 30-page policy subsection of our annual report (Crypto Theses for 2022) and the launch of the DFA Discord in December, which amassed 1000+ members in its first 24 hours during the holidays. After dozens of conversations with people much more politically savvy and experienced than me, I've since decided to move forward with the official formation of the DFA as an independent organization outside of Messari.

Separate from my role at Messari, I will help found the DFA, recruit the initial team, board, and sponsors, and catalyze fundraising from individuals. And I’ll plan to serve as chair of its board indefinitely. It will not be a full-time position for me, but I am committing to invest time here this year because I believe it's important for crypto and for Messari's end customers. Time is of the essence in an election year, and given the current regulatory environment, and I haven't seen anyone else step up to the plate to form something a much needed organization like this.

What will the DFA do?

We're creating a 501(c)(4) organization with a connected PAC. The primary DFA organization will be tasked with:

• Creating a crypto policy research library, aggregating policy proposals, creating a Congressional scorecard, fighting FUD, sponsoring independent research, etc.

• Funding legal defense *and* activist litigation. We will aim to identify areas in need of high-stakes defense, and pursue actions where we have standing to sue.

• Developing "one-click" tools for activists. Call / write your Reps and Senators. Engage in state and local initiatives. Host or participate in fundraisers. Etc.

The connected PAC would also be able to contribute directly to candidates, hosting fundraisers, and helping to solicit donations from crypto (and other) donors.

Many people have asked for guidance on which pro-crypto candidates they can support in the 2022 primaries and general elections. It is best to formalize that work through a Federal Elections Commission-compliant entity. People simply don't want to feel like they are pissing their money away, or aping into a campaign blindly. This is where an entity like the DFA can help.

The structure and political neutrality of the DFA will be important. I am looking to recruit Democratic, Republican, and Independent operatives and board members to help lead the entity. I am an independent, but have been highly critical of this administration, so it is important that initial hires are balanced.

My hope is that this dual structure will allow the army of crypto supporters nationwide to mobilize effectively, find and engage with candidates that are both pro-crypto and aligned with their values (bipartisan!), and throw punches when necessary. It is as important to aggressively support our allies via social media and campaign contributions, as it is to push back on our critics. Crypto boosterism and hostility must have an electoral impact.

Without that, we're fighting with one hand behind our backs.

For those of you, who just learned about the DFA, Messari, or even crypto last night: welcome! If you are new to crypto, you may benefit from reading my annual report, subscribing to the free daily Messari newsletter (again, a data and research company separate from DFA!), or following me on Twitter. If you are simply looking to support digital innovation in the U.S., and would like to contribute to the DFA, thank you!

It will take several more weeks to get the entity assembled and fully operational; Tucker’s invitation pulled up our timeline for announcing this initiative quite a bit! Stay tuned, and you’ll get updates from this newsletter.

***

A few other final thoughts:

For Messari customers and other stakeholders: To be clear, neither Messari nor its resources (employees) will be involved with or used in any way for or by the DFA’s affiliated PAC. In fact, Messari’s involvement in the DFA will be limited in scope to employees assisting me with its formation.

Suffice it to say, I do not want my company's work tainted by partisan politics. Nor is it fair to my team to have my activism (albeit, bipartisan) portrayed as representative of the beliefs we hold collectively or as a corporate entity. This is a challenge we're willing to navigate because the goals of the DFA are important. It will take another month or so before the DFA is fully live, and we've struck the right balance around my involvement. In the meantime, you can encourage other likeminded crypto policy wonks to sign up for newsletter updates here.

On speculation around my political candidacy: I want to put to rest any speculation: I’m not running for Senate, or using the DFA as a launchpad to enter politics full-time. This new policy organization needs a catalyst, not me as an executive director. My full and permanent focus is and will continue to be on scaling Messari, as that’s where I believe I can have the greatest impact, and where my core competencies lie. (It is also much more fun than navigating DC.) I will invest time and energy into the DFA’s formation because there’s an immediate industry-wide need for this investment, and the DFA’s success will be good for Messari and our customers.

***

For the crypto crowd wondering “Why go on Tucker Carlson?”

Well, for a number of reasons.

1. Crypto is a bipartisan movement. Tucker’s team latched on to some of my "red meat" tweets that were critical of the Biden administration on their crypto policy bent. They were eager to host a pro-crypto voice. My personal position is not anti-Biden, but rather pro-crypto and anti-crypto opponents. I wanted to use this appearance as an opportunity to clarify that position and tack to the center on what is the country's most popular evening news program.

2. Win over the cable news audience. Particularly the Fox News audience, whose exposure to bitcoin historically has been one of suspicion, if not fear. (“Isn’t this used by criminals?”) I wanted to present bitcoin and crypto for what it actually is: a hedge against inflation, the backbone for a new, dominant digital dollar, and an innovation wave that can disrupt tech and finance monopolies and give users ownership over the platforms they use. This is a bipartisan message. That's helpful because more Democrats watch Tucker than watch MSNBC. 

3. Warn the DC establishment. You know who really watches Tucker? The DC crowd and political establishment! Highlighting crypto voters for what they are - a massive swing voting bloc - should accelerate Republican support and catalyze Democratic support. The former wants to take control of Congress. The latter wants to mitigate losses in the midterms. They both need crypto voters. If we win allies in both parties, crypto voters won't need to choose between "pro-crypto" and "the rest of my values" because they’ll be able to vote in primaries for the pro-crypto candidates that appeal to them. We should be aiming for the same political neutrality we had with the early internet. The best way to do that is to have the DC political class fighting for our support.

4. Represent crypto positively and effectively. My opinions are unique, but I tried to represent our diverse community fairly. I spent a lot of time prepping for this segment to strike the right balance, and will continue to pursue other opportunities to promote bitcoin and crypto to new audiences. The path to industry’s success is not to self-censor based on a host's political persuasion. I am adamantly pro-free speech, and will continue to speak where I'm invited without serving as a puppet of, or antagonist to, the host.

Tucker Carlson's team was the first out of the mainstream media to invite me to speak about crypto. I appreciated that opportunity and will return if invited again. Even better if we have more than three minutes to get into these issues!

I hope others are open to discussion as well! I'm eager to accept my invite to JRE.

Engaging in any sort of politics in the current American political environment is fraught with risks. I'd prefer to avoid it, as most other entrepreneurs do. It is time consuming. It creates headline risks. Missteps are very costly.

On the other hand, thoughtful policy engagement, including selective battles, could bear fruit for decades to come. That’s why I look forward to working with millions of crypto voters to strike the right balance and help organize a movement that is effective, united, and positive.

I’m not shying away from this arena, though. There's too much at stake.

-Ryan Selkis

Founder, The Digital Freedom Alliance

Founder & CEO, Messari

(aka TBI, to the crypto crowd)