I don’t know if it’s naive so much as oblivious.
That is… what they’ve been doing. The SEC in particular. It set out a taxonomy of security token vs utility token vs currency tokens. Security tokens are subject to SEC registration and regulation. Currency tokens are subject to CFTC and FinCEN regulation and are treated by them as commodities and virtual currencies respectively.
That’s not to say the system is perfect, there are plenty of things that fall through the cracks, and the SEC in particular seems to prefer to regulate by telling players to fuck around and find out rather than giving any sort of pre-approval, but they’re already doing what the article is calling for.
This is missing the point that FTX wasn’t allowed to do these things in the US or with US customers. All these questions were already answered for its US operations . Now, obviously, the problem (from a regulatory perspective) with crypto is that it’s largely offshore, and relatively easy for it to remain so.
This seems to address the new guy most appropriately:
WaPo editorial board: “Crypto assets are just traditional assets but on the blockchain, a digital ledger.” Uh, no, they’re not just traditional assets. Cryptocurrencies* are unusual in that they are only transactions in a digital ledger, with no underlying thing, use, or promise to back them up. (Fiat currency has stronger backing, because the government will accept it for tax payments etc.)
WaPo: “[I]nvestors deserve a regime stricter and more transparent that what they have gotten.” Like the man in the movie said, deserve’s got nothing to do with it. Arguably current crypto investors deserve every miserable moment they’ve gotten recently, because they have to willfully ignore a bunch of red flags to participate in the current snakepit that is crypto.
The arguments for broader regulation of crypto are consistency and stability, which protect the broader public. The fact that such regulations would also protect cryptobros is an undeserved side effect.
*Note I say cryptocurrency specifically. Some other blockchain transactions like NFTs could in principle have the blockchain entry represent ownership of a traditional asset (though they mostly don’t.)
Timex
4242
Hey guys, I’m starting to think this crypto stuff is all bullshit.
Is it time to buy on the dip yet?
On the subject of Silvergate:
Tweeter is some guy on Twitter.
ShivaX
4247
Tom Brady can’t go a month without being involved in some manner of fraud apparently.
Well have you seen his diet and supplements line? Or the “performance sleepwear”? Sure, that stuff probably helps you be a better athlete. But it’s missing the most important ingredient: Tom Brady’s genetics.
Apparently Grayscale, the listed BTC fund, is trading at half of its NAV
Aceris
4251
1.4 trillion down, 700 billion to go.
KevinC
4254
I confess in struggling to keep all these straight! Was it known that BlockFi was in trouble, or is this a completely new development?
It’s been forecast to pop as BlockFi have been struggling to raise some emergency capital injection since FTX went bust.
