Yellen Says US Crypto Rules Should Support Innovation, Manage Risks (reuters.com) 23
U.S. Treasury Secretary Janet Yellen said on Thursday crypto asset regulations should support responsible innovation while managing risks, sticking to the contours of a recent White House executive order that was well-received by the crypto market. From a report: In a speech on digital assets policy released by the Treasury, Yellen said that in many cases regulators already have authorities that can manage crypto risks and provide appropriate oversight of new types of intermediaries such as digital asset exchanges. "Our regulatory frameworks should be designed to support responsible innovation while managing risks -- especially those that could disrupt the financial system and economy," Yellen said in the excerpts of her speech to be delivered at American University in Washington. "As banks and other traditional financial firms become more involved in digital asset markets, regulatory frameworks will need to appropriately reflect the risks of these new activities," she said.
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Politicians saying "Manage Risks" means, "you'd better be paying us a kickback somehow!"
She's smarter than this (Score:5, Interesting)
I've mentioned this before but large mining pools have more than enough power to do a 51% attack on any blockchain they choose. This was okay because they didn't have the motivation to do so... Until now. See mining pools need a safe place to reliably sell the currency they mine. That safe place is the exchanges. Without the exchanges to provide a safe place to sell currency mining pools lose so much in fraud they go tits up.
The exchanges though are tied into the broader financial networks. This means they're compromised. It means that powerful men can exert pressure on the exchanges who will in turn exert pressure on the mining pools.
And you don't even really need to do a full on 51% attack you just have to make sure the threat is there. You can use that to manipulate the price of cryptocurrencies however you choose.
Basically cryptocurrency is a completely failed experiment. It provides no benefits and many downsides. And worse we've let it get so big that's a real risk it could crash the entire economy.. Fun.
What would happen to the to the US Dollar (Score:3)
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I'm sure she knows this very well. She's just saying the government is going to shut down crypto in a subtle, plausibly deniable way. See, the government doesn't hate cryptocurrency. It loves it so much it wants to bring it into the legitimate financial system by applying all the same regulatory standards any financial product has to meet. If cryptocurrency can'
If it can't survive being brought into (Score:3)
I'm not saying our system is prefect. It crashes every 10 years due to lack of regulation (even though we know exactly what regulations are needed to stop that, Liz Warren has a few books on Amazon if you want to know what the are). But crypto isn't a solution. It's a money laundering and ponzi scheme. It can't compete with other payment networks for safety and usability and the problems I've raised above means it doesn't get yo
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I agree completely. Cryptocurrency basically exists as an attempt to evade existing financial regulations. I suppose some of those regulations might be unnecessary or out of date, but a lot of them are there to rein in money laundering and scams. There's no good reason to let anyone evade those regulations. If crypto can't compete when it has to obey the same laws as everyone else, it deserves to be destroyed.
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"Network effects" is an economics term that describes unstable playing fields. The problem with crypto coins is they intensify network effects and there is no baked-in algorithm to reduce it. That's why the DeFi aspect was a fairy tale by 2015.
Its all cartels doing pump-and-dump. Tether's activity alone proves that.
What Yellen's reaction tells me, however, is the govt is afraid that inflation will create a destabilizing shift to crypto (there can be no stable shift to it). And maybe if she's as smart as
I knew crypto was over (Score:2)
Tether is literally the foundation of the entire cryptocurrency market. It's how you buy into the market when you have fiat currency. The fact that the entire basis of the cryptocurrency market is a lie is bad enough but the fact that when that lie was exposed everyone just continued on a
There is no revolt against government regulation (Score:2)
Capitalism is like any complex machine it needs maintenance. Regulation is the maintenance of capitalism. We are foregoing our maintenance for short-term profits like a broke 20 something skipping oil changes so they can go out with friends.
Eventually our engines are going to blow up. That's fine for guys like Musk who can count on Daddy Warbucks to bail them out (eve
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it's hard! (Score:3)
It's getting harder and harder to launder all that cash out there!
We have to have "crypto innovation" or we might just have to report our actual income (gasp!).
Heavens...
Remember... (Score:1)
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It's also
crypto is bullshit (Score:2)
my favorite online casino (Score:1)