Crypto has been going through one of the most difficult phases right now. There is a lot of authorities trying to control the space, while a lot of them still want crypto to be free. Most of the enthusiasts believe that for crypto to succeed, we need to stay away from controlling laws and let the market grow and innovate. But Gary Gensler, the SEC Chairman, recently said that crypto needs laws to succeed and reach its full potential. What did you think about the same?
SEC Chairman Gary on crypto
There has always been a debate whether the crypto markets are better regulated or unregulated. We all know that to some extent, regulation is necessary to keep investors safe and reduce illegal activities at bay. But if it gets too tight, then the markets won’t be able to function properly. This is why Gary’s statement on the need for laws on crypto is very polarising. For some of you, it might seem fair, and for some, it might not. But all in all, it’s not a completely bad thing.
The SEC Chairman did say that the SEC are neutral on cryptocurrencies and the new technology. Their prime focus is on protecting the investors. He also said that the DeFi projects need to register if there is even a small fraction of centralization. This means from now on, there could be fewer hacks in the DeFi space, and investors will be better protected.
It is important to note that despite all the regulation and controlling actions of the SEC, the chairman is not personally against crypto. He does think that Bitcoin is an innovation and the blockchain world is really innovating. But like every new technology, it will need government support to reach its full potential. And that will come only with proper regulations in place.
Crypto is still in a growth phase right now, and there are many shortcomings to it. The market is saturated with so many coins, and DeFi projects that it’s not safe for investors. I think if the government and the authorities can regulate the market in a way that doesn’t suffocate the growth, then it is a good thing. But if it hinders innovation, then I am against it.
What are your thoughts on Gary’s statement that crypto needs laws to succeed? And do you think regulation is really necessary? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.