Mark Powers is a professor who has spent four decades working in the securities sector. He currently teaches a course on Blockchain at the Florida’ University Law College. Below are some takeaways from a monthly opinion column on the crypto market and related issues.
Mr. Powers doesn’t mince his words – according to him, the last two months have been pretty bad for crypto. Whether it has to do with prices or digital asset related activities, the market has taken a beating. He thinks that all manner of crypto is here for good. The use of crypto and related development cannot be stopped by any government. This, regardless of failures of companies and bankruptcies like the one faced by Three Arrows Capital.
Mr. Powers also talks about the collapse of TerraUSD and why investors should take a good look before investing in such instruments. There is little or no protection for investors and no backing by any currency should serve as a caution.
After he published his opinions on these and other topics, government regulators took an interest and issued new guidance rules for Bitlicense and stablecoin holders. On May 3rd, the SEC said that it would double the size of its Crypto Assets Regulatory unit to 50 people. It is essential that regulators think through what they want to enforce. Too much regulation may not be good for innovation in technology and may lead to lesser inclusion.