On January 3, 2009, Satoshi Nakamoto mined the genesis block of the bitcoin network (block 0), which contained a reward of 50 bitcoins. Now Fast forward more than 10 years later to 2021, and now there exists a whole host of new blockchains, some new and improved, in others just carbon copies. But as time has gone on, one constant question continues to persist, how will governments eventually come too except in regulate, this newfound industry of cryptocurrencies.
I know for some of us within the crypto world, we see regulation as unnecessary and burdensome, but crypto currency is now becoming a victim of its own success, and as more and more people begin to join the ranks of crypto investors and holders, more people fall prey to scams, of all their various shapes and sizes. Which has some politicians and bureaucrats calling for greater regulation. In this video we will go over a recent article I read called “SEC’s Gensler says crypto investors need more protection” and give you my opinion on what I believe this means, for the future of crypto projects. Source link to the article will be in the description below, OK now let's get started.
To summarize and paraphrase, the article first begins with, the Securities and Exchange Commission's chairman said investors need greater protection in a market "rife with fraud, scams, and abuse."
President Joe Biden's pick to head the Securities and Exchange Commission, Gary Gensler, outlined numerous areas where crypto needs to be reined in or regulated, including money laundering and ransomware extortion. "Right now, we simply don't have adequate investor protection in crypto," Gensler stated at the Aspen Institute's security conference.
Governments have thus far left digital currencies like Bitcoin mostly unregulated. Banks stopped assisting clients with Bitcoin transactions when China banned cryptocurrency mining activities in June. Gensler said the SEC needed greater power and resources from Congress to oversee the crypto markets, despite hundreds of wins against fraudsters. After a stay at MIT where he worked on public policy as well as digital currencies and blockchain, the worldwide running ledgers of digital currency transactions, Gensler was seen as open to cryptocurrencies and other new financial technology.
Beyond the issues, Gensler said digital currency innovation "has been and may continue to be a driver for change in banking and money." Gensler, a 20-year Goldman Sachs veteran, shocked many with his harshness as a regulator at the Commodity Futures Trading Commission under Obama. Gensler began by stating that he was not speaking for the SEC or its employees, but that he believed cryptocurrency regulation should be handled by his agency.
According to Gensler, currencies like the dollar and euro serve as a store of value, a unit of account, and a medium of exchange. While Bitcoin and other cryptocurrencies are still "extremely speculative," Gensler claims many crypto tokens are unregistered securities with little market supervision or investor education. Investors are vulnerable and prices are susceptible to manipulation.
"These products are regulated by our securities regulations," Gensler added. "I'm afraid many people will be harmed if we don't handle this." The total market value of all cryptocurrencies is already above $1.5 trillion. The Aspen Institute's national security conference on Tuesday featured a debate regarding cryptocurrencies for the first time.
In my opinion, I find it interesting that they always go to the tried-and-true tactic, of supposedly protecting the little guy, from being taken advantage of. I will be the first to tell you that crypto, is most certainly still the wild-wild-west in many areas, but I am also just as certain that many people flee to crypto to escape the so-called benevolent rule of government bureaucracies, as well. What plans do they have in works to save us from there government machinations?
But either way regardless of what one might feel about government involvement or not, it is an inescapable conclusion that the more money that comes into crypto, especially from the direction of financial institutions and the large corporations, the more pressure there will be for standardize industry regulation. As the saying goes be careful what you wish for, and as many of us within the crypto world have long wished for the day that mega institutional corporations would one day come to realize the significant value of cryptocurrencies, many of us did not think about what that might mean for formalizing the practice of buying and selling currencies in general.
Now the big guys have arrived, and they are not going anywhere, and with their arrival following close behind them or the government regulators. And companies that had a greater eye towards the future like Block-One in particular, have been preparing for the time that they would ultimately have to do business in this new regulatory future crypto environment. But either way regardless of what you believe personally, the regulators were always destined to arrive eventually, and companies that have a head start on this new regulatory environment, we'll pick up the lion share of potential market share, as many unregulated crypto companies try to play catch up, the crypto exchange Bullish in particular is in a prime position to capitalize on this up-and-coming greater crypto regulatory environment. In my opinion, it is only a matter of time, until the entire crypto world recognizes, the unescapable truth, and that is the most profitable areas of future crypto investment will be the regulated crypto areas in the future, and the first ones to adopt these new standards, will more than likely be the first crypto companies to achieve mass adoption.
To all EOS holders, mass adoption is coming
I think there should be regulation on cryptocurrencies as long as they are not too restrictive. Because like you said, new people are joining crypto every day. All of them may not be aware of everything. So it is normal for them to believe in lies or deception.
I also think that "partially" regulated cryptocurrencies will be popular in the future. Because although I think regulation would be good, if we are not free enough, what difference would we have from the current banking system? I must say, Bullish attracts me more and more every day!
Thank you for the article!
I'm not very keen about regulations for cryptocurrencies, since they put an obstable to freedom. However, I don't support illegal affairs neither. Too many people falls into nets of frauds, and indeed there are some organizations that use crypto networks for dirty stuff. Looking from this perspective, it convinces me that there should be several regulations to prevent illegal activities. If any restrictions to come, they should be in count for greater good, therefore they shouldn't be strict enough to harm crowd.
For that I have no idea how this issue should be handled, but I believe in Bullish and what they are trying to accomplish. Hoping that everything will happen as it meant to be.
Thanks for article!