Their posture is not, “We’ve seen what’s happened with FTX and others and think it’s time we bring regulation to the space to make it safer.”
Rather, it seems to be: “We don’t want to have any responsibility for this space that we think is disreputable and risky, and we certainly don’t want to be seen as legitimizing it by regulating it.”
What does this mean for founders and companies operating in this space? If the past two years were about educating government, the next two will need to be about earning their respect as a necessary precondition for trust.
This might mean starting to look more like the institutions they already regulate and are familiar with. Rather than saying you deserve to be part of the financial system, you’ll need to show it.
Source: How the Crypto Industry Can Prepare for Regulatory Scrutiny: Earn Respect from Regulators – CoinDesk
