Senators Lummis (R-WY) and Gillibrand (D-NY) introduced the “Responsible Financial Innovation Act”, the first major proposal for cryptocurrency regulation in the US. A press release from Lummis included statements of support from Kraken, Coinbase, FTX, crypto lobbyists, and various other major players in the cryptocurrency industry—unsurprising support for a bill that is incredibly friendly to the sector. Notably, the bill broadly avoids classifying cryptocurrencies as securities, which would be regulated by the SEC and provide some consumer protections. Instead, the Senators create a foggy definition for sufficiently “decentralized” cryptocurrencies that would treat them as commodities and place them under the purview of the CFTC—the much smaller and less aggressive regulator that has been the preference of most in the cryptocurrency industry.
First thought: Jesus. Pure corruption.
Second thought: In the long run loose is probably better than tight, and no regulation at all is best.
The entire fake structure is collapsing FAST now that the free money faucet has been shut off. The Ponzis and Pyramids have stopped expanding. More and more fools are losing real money and understanding the criminal nature of the whole enterprise.
If bitcoin gets regulated strictly, the most fashionable criminals will be able to manipulate the regulators. Banks will be forced to participate, and bitcoin crimes will become official requirements, with no recourse.
If bitcoin is allowed to run wild, the implosion will soon be complete, with nothing left to regulate.