Last week, six top executives from the crypto world testified before the House Financial Services Committee. They put forward the views of blockchain and the cryptocurrency industry. This meeting was arranged for Congress to understand the digital assets better. It is being considered a historic event for this industry. The dialogue was constructive and there was a genuine desire on both sides to understand the views and concerns of each other.
Dispelling the Myth
The myth that the crypto industry is unregulated was dispelled during this meeting. There have been strong calls to establish a single centralized regulator to regulate this industry. It is based on this false myth that crypto operates under an unregulated environment. It is important to weigh the benefits and drawbacks of a centralized regulator carefully. The crypto industry has evolved and become mature because of its decentralized nature. Even though it looks like a chaotic system, it is controlled by many regulators. Its different stakeholders are the ones who oversee its functioning, regulations, and development. No single entity controls it fully.
A Lot of Time Will Be Wasted
Establishing a single regulator can take several months or even years before it is ready for its job. The regulator will have to first establish the rules and regulations after taking the views of all stakeholders. It would have to hire staff and establish the organizational structure to oversee the industry. All of it will take several years. By that time, the industry would have moved far away from what it is today. A new set of regulations and mechanisms would be needed to regulate it.
The Crypto industry is not based on certainty. It prefers flexibility and decentralization. In fact, it is because of these characteristics that the industry has attracted large numbers of investors and innovators. This industry does not have the patience to wait several years for a regulator to come up and regulate it. There is also a risk that a strong single regulation system can force it to move to overseas territories