Siding with most the industry, SEC’s Commissioner Hector M. Pierce has said that the crypto industry should regulate itself, instead of government regulating it.
Expressing her opinion that government regulations aren’t the only solution during a public talk with former Commodity Futures Trading Commission (CFTC) chairman Gary Gensler at the MIT Bitcoin Expo 2019, the commissioner has said that better alternative is self-regulation of crypto. Instead of giving the matters in the hands of skeptical governments, crypto should be self-regulated:
“One really important thing to remember is that people regulate each other in their interactions with one another, and that’s the whole purpose of the Bitcoin idea, that it would be a community that would be able to regulate itself. As problems arise, people in that community are thinking about how to deal with those problems. One model would be to have a government regulator, but I don’t think that’s the only model.”
Self-regulations is the act of forming non-government bodies that allow the currency to regulate itself. The crypto at the moment is in dire need of having a more organized structure, whether introduced by government or self-regulations, due to the flocking investors who want to enter the market.
Not only is the SEC’s commissioner of the opinion of keeping crypto out of centralized regulation business, but most of the experts of the industry also think in a similar fashion. Where the regulation is likely to play a major part in crypto’s adoption by bringing in use cases and ETFs, they are also termed to be the centralizing points. Hershel Mehta, the private investor from Mehta Ventures, recently expressed his opinion relating to regulations:
If any regulation is to be undertaken, only non-human entities should do so. Governments should instead push for innovation and creation of stablecoins (Digital currencies pegged to a certain commodity) which act as an intermediary step towards the complete digitization of the economy.
The other half of the crypto world also believes that regulations might bring more good than evil to the crypto space. Co-founder and partner of Morgan Creek Digital, Jason Anthony Williams believes:,
If that [regulation] doesn’t happen, you’ll always have a speculative situation, small-ball, not a lot of money moving into the space, and potentially could kill the whole movement. So I’m a huge supporter of regulations, transparency, roadmaps to understanding what I own, how I own it, and its custody. Those are all really important things.
For the secure operation of crypto for the institutions, and even retail investors, regulations have become necessary. With legality and a better framework involved, more money is likely to flow into the crypto space. And with operations on a government level, like regulations, added use cases, and ETFs, the adoption would naturally grow.
If the core values of blockchain and cryptos are to be maintained, regulations might not be the best move ahead. But, if the cost of minimal centralization can be paid to gain interests of the institutions and retail investors, bull runs, adoption and huge trading volumes come along with the package.