Crypto regulation has long been a rather controversial topic. Traders and analysts everywhere seem to be split right down the middle on it.
How Necessary Is Regulation?
Some of the experts out there believe it’s completely necessary, and they’re all for it. Tally Greenberg – head of business development at All Nodes – explained in a recent interview:
Regulations will come up and they must come up at some point, which would stabilize the market even further. That protects investors, so it’s a good thing. It’s not a bad thing.
Crypto regulation has always been a two-sided coin. On the one hand, it could potentially bring a lot more legitimacy to the crypto industry, which it certainly could use right about now. With so much talk about Russia using crypto to potentially bypass sanctions and several other criminal behaviors occurring within the digital currency space, regulation could potentially make the industry much more stable and attract a lot more people to it.
However, there is a downside to crypto regulation in that it infringes on privacy. One of the big goals of crypto has always been to give traders their space. It has also sought to give them monetary independence and control over their own riches and financial situations. Thus, if regulation occurs, there is likely to be third parties and prying eyes throughout the arena, so it leaves one wondering just how private the crypto world will remain.
Nevertheless, there are still many arguments out there that crypto regulation is necessary for the space to reach any peaks. Aaron Klein – a senior fellow in economic studies at the Brookings Institutions – says the problem is not whether crypto is regulated, but if it’s regulated well.
Right now, there are examples of crypto regulation entering the space, such as last summer’s infrastructure bill which contains verbiage aimed at digital currency traders and the taxes they must likely pay. While rules can exist, they may not always be the right rules, and he says that agencies throughout the U.S. and abroad need to focus on fully understanding the space before they can implement legal protocols.
He says:
In reality you kind of have three possibilities: no regulation, bad regulation, and good regulation.
The Space Keeps Changing and Growing
Greenberg says that one of the big reasons that regulation hasn’t been truly introduced is because the crypto and blockchain spaces are still growing and adapting. Right now, there are many new companies and tokens being introduced all the time that follow different policies. Regulation would need to encompass the whole space, and the number of new introductions happening all the time makes this a challenge. Greenberg says:
Policies haven’t been devised yet because there’s no precedent to blockchain and crypto, so it’s a hell of a task. I understand why people are stalling on it, but something needs to happen soon.
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