To better understand this point, it is helpful to compare crypto’s plight to that of another innovative product that came shortly before — ridesharing. When Uber first launched, its business was illegal in almost every new city it entered. The company overcame this hurdle with one enormously powerful weapon — a product that consumers enjoyed. By solving the frequent problem of unreliable taxi service, Uber quickly developed a large and vocal constituency of riders and drivers. These ultimately forced policymakers to accommodate a business model that forever changed the way we get around. In sum, a great product compelled regulatory change.
The crypto industry seems to think the opposite — that regulatory change will compel a great product. This notion has led the industry to become mired in endless policy debates and fitful legislative efforts that only benefit their lawyers and lobbyists. The truth is that crypto is not a kitchen table issue because, at present, it fails to solve real problems that ordinary people face. In fact, politicians are far more likely to hear from constituents who have suffered losses in any one of the numerous crypto-related failures over the last year. This is not a recipe for legislative success.
‘Enforcement 40’ for 2020
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