Crypto Decrypted

6Myth – Regulation Will Kill Crypto

The crypto winter only intensified the buzz about the popular myth that the U.S. government will regulate crypto out of existence (therefore, there's no point in investing in it). We strongly disagree. We've already seen signals from the Commodities Futures Trading Commission (CFTC), the Internal Revenue Service (IRS), the Securities and Exchange Commission (SEC), Congress, and the White House that, while regulation is coming, it's not intended to strangle crypto in any way. In fact, it's the opposite. Policymakers want crypto to thrive.  To do that, they want to curb excesses and ensure more transparency.

Chair Gary Gensler at the SEC can sound like a regulatory hawk, but as legislation has moved forward, he and the SEC emphasized early cooperation far more than excessive enforcement. The crypto industry broadly supports the two major bills likely in some form to become law.

So far, the SEC has cracked down on fraud, as it should, but the SEC fundamentally wants crypto entities and assets that act like securities to have some rules. For Gensler, if a token barks like a security, walks like a security, and talks like a security, it's a security. As of this writing, we're confident of a strong bipartisan law and new funding for the CFTC to handle its new legislative assignments. The parties on Capitol Hill, the White House, and the agencies want a steady, progressive, regulatory structure. It's essential to know the fundamental conflicts inherent ...