The important (but not very deep) case for U.S. regulators not to push crypto out of America

 

Jack Solowey at libertarian think tank CATO Institute raises important points in this piece saying U.S. regulators shouldn’t push so hard on crypto regs that the entire sector just moves offshore.

I agree that this would diminish the role of America and our workers in a critical and huge innovation era. But unless I’m just not seeing it in the nuance of this piece, I don’t see a deep case here. That said, it’s still a key weekend read, full of links that do go deeper.

I’ll be reading those links this weekend, and if someone can take me deeper than the political message points of this stance, please comment below or reach out.

But please offer nuance rather than a naive ‘all regulation is bad’ stance. Crypto is finance and finance must be regulated, end of story. I say that as a decades long finance exec.

Also, if you have strong views on ‘regulation through enforcement’, have a look at this piece and let me know your thoughts. It explains how ‘regulation through enforcement’ began in the mortgage industry and, while extremely painful and annoying, worked out as optimally as it could for consumers, banks/lenders, regulators, and systemic safety.

Elizabeth Warren turns post-2008 mortgage crackdown playbook on crypto