- The Crypto Bootcamp
- Posts
- We Need Crypto Regulations
We Need Crypto Regulations
Regulations is how we onboard the next billion users into the crypto economy
Rakesh Lahoti
May 16, 2023
Faith in institutions has been on a steep decline and the tech that can solve this (blockchains/crypto) is being slowed down by the legacy institutions themselves.
What am I talking about? The SEC vs Coinbase.
The TL:DR version of what’s happened is perfectly summed up by this tweet:
SEC: Come in and register.
CB: We’d like to register.
SEC: You’re not allowed.
CB: Why not?
SEC: The rules are clear.
CB: The rules don’t make sense.
SEC: The rules are the rules.
CB: Can they be adapted?
SEC: Yes, but we don’t like your industry.
CB: But you've adapted rules… twitter.com/i/web/status/1…— miles jennings | milesjennings.eth (@milesjennings)
4:53 PM • May 16, 2023
The Securities and Exchange Commission refuses to give clear guidelines to crypto companies so that they can color within the lines. Which means these companies have to just “wing it” and find out if they’re breaking any laws when they get fined or sued.
Not only that, but the SEC also petitioned the judge to throw out Coinbase’s demand for an explanation.
The US SEC asked a judge to deny Coinbase’s request to compel the agency to respond to a rule-making petition the company submitted last year focused on how securities laws apply to cryptocurrency
— Bloomberg Crypto (@crypto)
3:54 AM • May 16, 2023
The SEC clearly doesn’t want Crypto to flourish. But that just makes everything worse for the rest of us. Why?
Because all the crypto companies are moving out of the U.S. to other countries that are unregulated. This is the exact reason that led to the meltdown of FTX, LUNA, and a handful of other companies in 2022. Without regulations, we have market manipulation, money laundering, and zero protection for consumers (U.S. Citizens).
This is Your Opportunity
Take a moment to zoom out and you’ll realize that this is a temporary blip in the grand scheme of things. Markets are panicked, interest rates are rising, and there’s fear of recession and volatility. You could see this as a risky time to invest in crypto or you could see it for what it is, an opportunity.
In 2012, everyone said Bitcoin was useless and the best use case was for buying drugs online. Most news outlets thought it was a scam and wrote it off as another Ponzi scheme. But the fact remains that cryptocurrency is a technology. And tech isn’t good or evil, it’s a tool.
This specific tool has the ability to remove the middleman (businesses like Uber, Facebook, & AirBnB) between goods and services. It has the ability to replace parts of the government with autonomous machines (DAOs) that can’t be corrupted with political endorsements or funding. This tool has the potential to completely restructure our society by aligning the incentives for everyone involved.
You wouldn’t be here if you thought crypto was bullshit. I’m here to tell you that the SEC won’t win this fight and crypto WILL become mainstream this decade. If you thought you were too late to buy Bitcoin, wait till you see what happens in the next few years.