Crypto CEOs Like Coinbase’s Brian Armstrong Need to Accept That Existing Regulations Also Apply to Them

The problem is the pernicious concept in crypto that goes under the name “regulation by enforcement.” We need to excise this phrase from crypto, not just because it is imprecise but because it simply is not a thing. Regulators in the U.S. are not creating new rules; they are enforcing existing rules. Perhaps crypto executives need a quick refresher on the law and rule-making process….

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If regulators have thus far been successful in obtaining enforcements then this should be a huge wake-up call to the crypto industry that financial transactions in crypto conform to regulated financial transactions and, as such, the existing rules apply. If their legal counsel is telling them otherwise, then it is time to get new legal counsel because this is a multi-million dollar lesson that the industry keeps learning and will keep learning until they make a change in strategy. A new lawyer won’t cost as much.

We’re starting to get a growing list of crypto services where one might ask: Is it regulated? And based on the enforcement actions we can say: Yes, unequivocally….

Source: Crypto CEOs Like Coinbase’s Brian Armstrong Need to Accept That Existing Regulations Also Apply to Them