Do cryptocurrencies need regulation? – Crypto Daily ™

Given that the cryptocurrency sector is generally looked down upon by many in the traditional financial system and Gary Gensler, chairman of the SEC, calls it the “wild west”, it would appear that it is a sector that needs serious regulation for a long time. or not?

Across the world media, and from the lips of some of the most influential people in finance, the cry continues: “cryptocurrencies are for drug dealers, terrorists and money launderers.” The latest crypto scam is being denounced and shown as a warning to any investor taking a risk in such a wild and dangerous sector.

It is surely time to bring in the regulators to crack down on these nefarious operations, before they grow so large that they may even affect our safe and reliable monetary system.

Ok, I think we all realize that cryptocurrencies are not as bad as described above. Yes, there have been some blatant scams, and even the most ardent crypto enthusiast would have to admit that most of the almost 12 thousand crypto projects trading today probably won’t survive beyond next year or so.

However, this is a very new industry. It has only been running for about 12 years, since Satoshi Nakamoto mined the first bitcoin. Since then, cryptocurrencies have grown into a $ 2.4 trillion sector, which many believe will grow to match the size of the gold market capitalization in the next few years, between 9 and almost 14 trillion dollars.

Some analysts also say that this new blockchain / crypto industry is the most innovative and disruptive since the internet. Several other sectors, such as commerce, finance, and gaming, will change enormously with innovations like NFT and DeFi.

So let’s get back to the question of regulation, and who will carry it out?

Gary Gensler, president of the SEC is one of the candidates. He supposedly has the credentials of having taught blockchain at MIT. However, his background in technology is questioned by a Forbes article which also posits that the MIT season was a necessary step to give him the “academic good faith to secure his nomination as SEC president.”

This has perhaps been confirmed since then, as Gensler’s comments on cryptocurrencies have not been clever or constructive. It seems that he just wants to be seen as the strong arm of the law and speaks of all cryptocurrencies as values, even acknowledging the innovation they bring.

Gensler would also have ‘middlemen’ between each crypto platform and the public they serve. These intermediaries are a typical element of the existing financial system, and it could be argued a lot that their existence is simply not worth the amount of value they extract from both the platform and the investor.

In fact, all the type of regulation contemplated so far comes from what exists today in the traditional financial system. A system manipulated in favor of the banks and controlled by the government.

The numerous reports of banks like JP Morgan, manipulating the markets and operate in a nefarious way, they are always in the media. They pay the fines, which are negligible when you consider how much their operations bring them in, and then carry on as before: too big to fail, and seemingly beyond the reach of any regulator to do anything serious about it.

A future where all crypto platforms are regulated by these types of people is extremely worrying. Innovation would stifle, advances in technology would slow down, and all just to pacify those who have the most to lose from the disruption of finance and other prominent cryptocurrency sectors.

If all regulators were in the SEC’s Hester Pierce mold, there would surely be overwhelming support for regulation. It can be easily seen that he recognizes the revolutionary technology of cryptocurrencies for what it is, and his Proposal for a “safe harbor” he is thoughtful and well considered.

However, it appears that President Gensler is the one setting the tone, and we know what he wants.

So what about unregulated crypto?

We all know that this will not be the case. But imagine if it were, and what could potentially happen?

The scams would continue to persist. But eventually the investor would learn to be smarter. Having a regulator that controls your every move means that you will never develop that skill. Instead, you are cornered in a straitjacket of obedience that completely disables your ability to think for yourself.

The system and its regulators would kick us out of the crypto market entirely because it is too “dangerous” for the average investor. This should be another playing field just for the ‘accredited investor’, because they surely don’t understand anything about investing unless they have at least $ 1 million at their disposal.

The average person on the street is at the head of Wall Street in the tremendously innovative and profitable market that is crypto. Yes, some, if not many, can get burned if they’re not careful, but at least there are endless possibilities in the world of cryptocurrencies, unlike none in traditional finance.

Regulators are coming and they will seek to suffocate and suffocate, as they will be entrusted by the banks, which are the ones who ultimately have the authority in this world.

With decentralization being a very real way out of reach, let’s hope retail investors have the power to break their chains and really learn what schools won’t teach, about who ultimately controls the financial system, and by extension who. controls. all of us.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.


Source: https://cryptodaily.co.uk/2021/12/does-crypto-need-regulation

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