…. The root of the problem is that cryptocurrency assets can be created at no cost and without limit, and an unlimited supply of assets makes a system more vulnerable to booms and busts. When assets have nothing behind them, no reliable financial accounting practices or valuation techniques exist to expose the fraudulent manipulation of those assets. The result is that fraudsters have rushed into cryptocurrency, exploiting the complexity and hype to dupe the unwary. As Bankman-Fried awaits trial, U.S. policymakers need to limit the harms associated with cryptocurrency technologies and business models. At the very least, they should not loosen existing laws in the name of fostering cryptocurrency innovation. But they should also consider a more serious measure: banning cryptocurrency assets outright.
‘Enforcement 40’ for 2020
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