Regulation or Market?
Government Is Always Behind
When it comes to regulation, government is always behind. Lawmakers write a bunch of laws and set up a new agency. That new agency writes a bunch of rules and regulations. Advocates like to call them “guardrails”.
They never work. They hurt the marketplace. They never do what they are intended to do. They become punishers, not regulators.
There is zero chance that the government can regulate things like cryptocurrency or artificial intelligence with any sort of even hand at all. They will pick winners and losers. They will screw it up. It’s guaranteed.
Did the government stop Bernie Madoff? Enron? Others?
Cryptocurrency is a perfect case and point. Name a fraud that the government got before it happened. I will wait.
@Balajis wrote a great piece on the FTX scandal and you should read it.
It was crypto Twitter, the crypto community, that took FTX down. Not politicians or regulators. The mainstream press fawned over Sam Bankman Fried, but they didn’t uncover anything either. They were and are stenographers, not reporters. They wanted to create and bask in a little SBF sunshine
Best-selling author Michael Lewis did a fawning 60 Minutes segment that would have played well in Berkely, but not in board rooms.
Politicians like California Democrat Ro Khanna didn’t just fail, they were bought. It showed in their questioning of people who brought up holes in the FTX business model during hearings.
We have reached the crazy time in America where the people in power have utilized the government to go after political enemies. How do you know? Because Trump is being accused of starting to assemble a government that will go after his political enemies.
When the people in power accuse someone of doing something, they are probably already doing it.
Now that Biden is getting crushed in swing state polls, look for the calls to step down to get louder and stronger. The Dems might get so desperate, they will impeach him on their own.
We don’t need regulation in crypto. We need less fraud. We need crypto to follow some standard operating procedures when it comes to clearing, margin, and settlement. We need crypto to think out of the box and build cool stuff, not just replicate existing systems.
The Financial Times is as ludicrous as usual. They are befuddled as to
"Why would a young billionaire, running the world’s most successful start-up, risk illicitly borrowing billions to fund risky crypto trades?"
Really? This type of analysis, like Michael Lewis' analysis, passes for intelligent discussion.
SBF was a drug-addled screwball, serial liar and thief. He was convicted of doing what drug-addled screwballs, liars and thieves do. The FT just can't fathom that someone with his pedigree, similar to their writers, is a scumbag.
https://www.ft.com/content/c38d2f8a-5707-41ae-815e-7a9e79d9027d
Crypto is the last haven for money laundering and acts as a bank
No regulation would solve this problem
Only shutting it down would do it
Take that to the bank