Bloomberg and Better Markets Are Wrong About Crypto

Without question, regarding the Vice President, her actions don’t fit the description of “pandering” or “giving in.” Instead, her team has been attentive, interactive, and receptive to understanding a novel financial product. Any other approach would undeniably be unwise.

It seems fairly obvious to fair-minded observers that after over a decade of the cryptocurrency currency trading makes it unlikely it’s going away anytime soon, as much as some may want that. Given that, you would think the reasonable person would say, “let’s properly regulate these products.” It is not true that crypto doesn’t face a myriad of state and federal regulations. What is true is that, as long as an enforcement-only regulatory approach is taken, the U.S. will see jobs move overseas, innovation will be hampered and crucial decisions will be left to the courts.

The Chairperson of the Commodity Futures Trading Commission (CFTC), Rostin Benham, has taken an active approach in advocating for Congress to pass reasonable and safeguarding laws. It’s unfair and defamatory for Better Markets to claim that the CFTC is incapable of such action and is prone to regulatory capture.

2023 saw a remarkable surge in enforcement actions by the CFTC concerning cryptocurrencies, accounting for about half of all such actions taken that year. However, it’s crucial to note that crypto-related fraud only makes up 1% of the estimated $3.2 trillion in annual illicit activities involving U.S. dollars and other traditional currencies. This implies that, contrary to what some articles like those from Bloomberg and Better Markets might suggest, cryptocurrencies are not preferred tools for financial predators. Instead, it’s the U.S. dollar that holds this title.

Yes, crypto has some of the speculation and abuses we have all heard about but, as a Californian, I can tell you these things happened during the Gold Rush of 1849. Ironically, today gold is considered the “safety” investment.

To conclude, it’s worth mentioning that the Securities and Exchange Commission (SEC) has taken significant steps to enable American investors to invest in cryptocurrencies like Bitcoin and Ether via Exchange Traded Funds (ETFs). Interestingly, the SEC recently authorized an ETF which enables retail investors to make a leveraged investment, effectively betting 1.75 times the daily price fluctuations of a single company’s stock. However, this seems like a rather risky move, even to me.

As a passionate crypto investor, I want to express my unique perspectives, which may not align perfectly with the views of CoinDesk, Inc., its owners, and affiliates. These are my personal insights into the fascinating world of cryptocurrencies.