Cryptocurrencies are very popular among people who want to escape the centralization of finance and enjoy a bit of freedom without a middleman. Making a transfer of currency without a third party in the middle can very well be seen as a bit more freedom. Of course, these so-called third parties, the financial institutions, and governments do not want to lose their monopoly position and defend it with all their power. It is therefore less surprising that the lawmakers are now coming and crying out for regulation of the crypto world.
Gary Gensler, head of the SEC, has been caught in the crossfire recently for openly advocating stricter regulation of cryptocurrencies. He has told Congress that he wants all crypto platforms to register with the SEC on the pretext of investor safety. In his opinion, investors are not protected against fraud and manipulation and could suffer heavy losses as a result. The SEC believes that cryptocurrencies are a speculative asset class like stocks and should be regulated by the SEC.
Exactly because of this view, he is now caught in the crossfire of the crypto community because they see cryptocurrencies rather as what their name already says currencies or commodities just on a digital level. Why the SEC has now made it it’s business to regulate cryptocurrencies can probably only understand the SEC itself.
The President of the European Central Bank ECB has already set her eyes on the regulation of cryptocurrencies as well. ” Madame Inflation” Christine Lagarde calls Bitcoin a “funny business” and it should be regulated on an international level. Of course, again only in the name of security for the helpless retail investors. In addition, she pushes reasons such as money laundering and that these security gaps must be closed. Under her leadership, the ECB is already working on the solution: a digital euro.
Lagarde should know a lot about crime, as she was found guilty of fraud and embezzlement during her time as head of the IMF. She did not have to serve a sentence, however, because the court declared that she is a person of the world.
Of course, there are also politicians from the United States who want to regulate cryptocurrencies. Hillary Clinton recently spoke out in favor of more regulation, saying that if cryptocurrencies and social media remain unregulated, they could pose a real threat to the U.S. dollar as a reserve currency. She also said that stricter regulations are needed to prevent manipulation from Russia and China. In an interview with MSNBC, she said that “We’re looking at not only states such as China, Russia, or others manipulating technology of all kinds to their advantage. We’re looking at non-state actors, either in concert with states or on their own destabilizing countries, destabilizing the dollar as the reserve currency.”
It is exciting that Clinton is now again using Russia since it has now been confirmed that during the election campaign against Donald Trump, Hillary Clinton only invented the so-called “Russiagate” and used the FBI to do so. Spread lies about their campaign opponent. So she could actually pass as a conspiracy spreader.
Is Hope for Freedom Lost?
It was foreseeable that the big regulators would come at some point and try to impose regulations and taxes on the crypto world. It is clear that they do not want to lose their monopoly position for financial instruments such as currencies.
So is hope lost for a decentralized financial world? The real power is and always has been in the hands of the people. They just do not realize it. Currencies only have value when people believe in them. If people no longer believe in their currency, it will lose its value and people will look for other things to exchange. This is seen again and again in countries where there is high inflation. There, people use other currencies or real money like gold or silver. For example, some regions in Venezuela use gold flakes as a medium of exchange for services or goods.
See also: Venezuela Goes Back to Real Money
Moreover, cryptocurrencies like Bitcoin were created precisely to create a decentralized currency. Therefore, entrepreneurs and the clever minds behind the ecosystems and blockchains will come up with more ideas to preserve the very idea behind the crypto world: Decentralization and freedom.