Regulatory hacking is a philosophy that 1776, a business incubator based in Washington, D.C, has taken to heart, and the basic premise is to find new ways to change or circumvent regulations that slow down progress in certain industries. Ehrsam mentioned some of these industries during the podcast:
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You have a few select industries, which it sounds like you guys at 1776 are focused on here, which have not been disrupted to date a whole lot, largely because they tend to be more centralized and/or government regulated. Those include finance, healthcare and education. There are others, but those are the big three that I would think about.
https://bitcoinmagazine.com/articles/coinbase-s-fred-ehrsam-bitcoin-turns-finance-into-a-software-problem-1458404239