Blog: Opinion | Crypto Needs Regulation, but It Doesn’t Need New Rules – Head Topics

From WSJopinion: We shouldn’t assume we need to reinvent the regulatory regime just for crypto, write Jay Clayton and BrentJMcIntosh

Identify the function a new financial instrument is performing, then apply the existing framework to it.

June 6, 2021 3:25 pm ETAs cryptocurrencies have become the preferred payment method for hackers and as their prices have cycled through dramatic peaks and valleys, many have questioned the adequacy of the U.S. regulatory system to protect consumers, ensure market integrity and promote innovation.

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Treasury Secretary Janet Yellen has suggested the U.S. framework isn’t “up to the task” of regulating cryptocurrencies. The comptroller of the currency, Michael J. Hsu, noted the limitations inherent in a “fragmented agency-by-agency approach,” and Chairman Gary Gensler of the Securities and Exchange Commission lamented that because cryptocurrency exchanges lack a market regulator, there’s “no protection around fraud or manipulation.” Others have called for a ban on cryptocurrencies.

Innovation is rarely smooth or predictable. With a digital revolution under way in the financial services industry, a sector of the economy where the thirst for innovation and profit can never be quenched, there’s also a serious risk of both overregulation and underregulation. Policy makers would be wise to ground their efforts in the principal objectives underpinning existing financial regulations: financial stability, deep and efficient funding markets across the spectrum of debt and equity, and the prevention of fraud and illicit activity.

The linchpin of this approach is to identify the functions a new product or process is performing. We should look past superficial labels and ask how a token, digital wallet, cryptocurrency or crypto exchange is being used and what existing instrument or process the new technology competes with, complements or aims to replace—and then regulate it accordingly.

Crypto entrepreneurs seeking capital touted initial coin offerings, or ICOs, as a new, efficient (read unregulated) means to raise money for ventures. Yet their function was neither new nor unregulated. In function, ICOs were securities offerings, and in 2017 the SEC rightly stepped in to regulate them in accordance with longstanding and well-understood federal securities laws.

Read more: The Wall Street Journal »

Senators Urge Crackdown On Crypto As Ransom Payment After Gas Pipe, Meat Plant HacksA member of the Senate Intelligence Committee, Sen. Roy Blunt called cryptocurrencies the “ransom payment of choice.” It’s odd Senators are urging a crackdown on cryptocurrency rather than utilizing all govnt resources to target dark web foreign & domestic cyberhacker terrorists/sex traffickers/identity & financial thieves & those who intend damage or chaos to our nation. Very odd. 4Humanity

Cramer: ‘I’m a bit of a crypto bug’ as a hedge, but it could fall further“I’ve always been a gold bug, but now I’m a bit of a crypto bug just as a hedge,” jimcramer says. “I don’t swear by it.” Read more with CNBCPro here: jimcramer Pro good luck jimcramer Pro If you want to learn about crypto, don’t listen to clowns and suits at CNBC. Go to individual podcasts that are everywhere. Listen to Andreas, Charles H, Vitalik Buterin. Everyone else are just clowns. They have no no clue what this is! They pump and they dump! That’s it!

Elon Musk’s Bitcoin tweets riling crypto faithful; economists struggle comparing 2021 to 2020Elon Musk’s recent comments about Bitcoin undercut the efforts of investors to establish it as an asset class, and could erode Musk’s standing as leader of his two major companies, Tesla and SpaceX.

Bitcoin faces fresh scrutiny as police call for new powers to freeze crypto assets in the U.K.The U.K.’s largest police force wants the ability to freeze criminals’ crypto assets. The police service is also lobbying the government for legislative changes that make it more difficult for criminals to transfer crypto assets.

A group of MIT alums in their 20s could be sitting on 13,000% bitcoin returns after taking part in a school project that gave them free cryptoIn 2014, the MIT Bitcoin Project gave away free cryptocurrency to any student who wanted to participate. This is their lesson in manias. ‘Could’

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