Inflicting billions of dollars in losses is a great way to lose sympathy among politicians.
Time has run out: It’s too late for the crypto industry to get the kind of regulation it’s been pushing for. The crypto winter arrived before any new laws could be written, and has changed the whole tone of the debate in Washington.
Why it matters: Crypto insiders have long dreamed of a world where everything they do is carved out into their own bespoke regulatory regime: one primarily designed to encourage innovation, and that doesn’t try to apply 20th century laws to a 21st century financial system.
That dream has, realistically, died.
The big picture: Regulation, by its nature, tends to concentrate on minimizing harm rather than maximizing capital formation. Right now, the harm caused by crypto is more visible than ever, while any real benefits seem small in comparison — and shrinking fast.
‘Enforcement 40’ for 2020
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