The US Securities and Exchange Commission (SEC) has been cracking down on crypto companies lately, but according to an editorial by Bloomberg, this could be beneficial to the industry in the long run. The editors of Bloomberg suggest that the crackdown represents an opportunity for crypto to gain mainstream adoption and acceptance, which is necessary for the industry to deliver on its positive promises to society. In fact, the editorial went as far as saying that this could be the best thing that ever happened to the industry.
Potential for Societal Benefits
While regulatory agencies in the US have been busy cracking down on crypto companies, Bloomberg’s editorial team agrees with the crypto industry that crypto has the potential to bring many benefits to society. These benefits include creating better forms of money, more convenient cross-border payments, more efficient finance, and new ways of governing mutual enterprises. To achieve these benefits, however, the industry needs to gain mainstream adoption and acceptance.
The editorial piece went on to suggest that regulators in the US should follow Europe’s example and implement a regulatory framework like the EU’s Markets in Crypto Assets (MiCA) rules. This framework would grant the SEC and the Commodity Futures Trading Commission broad powers to quickly rid the market of thousands of bad actors, without getting bogged down in definitional details and without diminishing their authority in their traditional jurisdictions. The editorial concludes by stating that while speculators would still make bets that go wrong, as they do in any market, the reduction in scamminess would provide genuine innovators with the best possible shot at achieving something consequential. Crypto’s true believers could hardly ask for more.
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