tl;dr: Government regulation is not sexy and it’s very slow, but it’s not to be understated. There may be reason for optimism on the horizon.
One area of mainstream crypto adoption to which I don’t pay enough attention is government regulation.
Now, I clearly don’t think that government can regulate the blockchains themselves, of course. However, they certainly can regulate the on and off ramps to the crypto world.
You may be able to acquire crypto and you may be able to trade it and even sell it for dollars (or other fiat, of course), but getting it into your traditional bank account can be a problem if the government wants to make it difficult.
Colorado is emerging as a leader in pro-crypto regulations – Data Driven Investor
It’s probably because I’ve spent most of my life in the Washington, DC area (I like to call it ‘ground zero for the Twilight Zone’ these days) that I have a natural aversion to government bureaucracy.
The reality is that, as long as tax and securities law is unclear, there’s going to be higher barriers to entry.
Since there’s not much I can do about it myself aside from going downtown and briefing commissioners (hmmm, there’s an idea), I compartmentalize.
This is on my mind because I had a good chat with Wayne Vaughan of Tierion the other day, discussing the state of the crypto industry. Wayne is as “crypto OG” as you will find and his solution is one of the most practical ones around– it provides a blockchain-based proof engine for enterprises. It’s worth checking out.
Wayne’s position was that, even more than wallets and interfaces, regulation is the biggest barrier facing the industry.
He also pointed me to this survey and analysis that showed that regulation, more than fundraising, product-market fit, and talent acquisition is the #1 concern among many crypto founders.
I am not sure that is a good thing, but it is what it is.
I also spoke with someone else recently (didn’t want to be named) who had a fresh take on the Kin action against the SEC, which I highlighted the other day. She thinks it might be a forcing function on the agency to provide some clarity.
Let’s hope she is right.
If you really want to follow this issue, the best organization around is Coin Center. Their work is flat out excellent and the team is first rate.
Originally Published: https://www.neverstopmarketing.com/just-because-i-dont-like-talking-about-regulation/
Just because I don’t like talking about regulation…. was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.