Regulating Crypto by Enforcement and Stealth Will Set the US Back.
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These latest moves will make it even harder for average U.S. citizens to participate in this industry, limiting it to large institutional investors, while various innovative startups looking to disrupt those same rent-seeking intermediaries will struggle to access liquidity. It’s hard to understand how these actions serve to protect consumers or further other policy objectives such as expanding financial inclusion. It feels as if government agents are deliberately trying to force this industry into the hands of Wall Street fat cats.
But here’s the thing: Making it hard for Americans to invest in and build crypto projects won’t stop people outside of the U.S. from doing so. Hardline actions here will just push activity overseas. And while the U.S. might continue to generate business in “institutional crypto,” it will miss out on the true innovations occurring at grassroots levels.
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