- For years, all folks operating in the cryptocurrency sector in the United States have understood that more rules in the sector are coming down the road.
- Gary Gensler became the chair of SEC back in April, and initiated making comments which put cryptocurrency advocates on high alert.
- Previous month, Joe Bide, President of US, issued an executive order on cryptocurrency, which amounted to a call to action for different agencies.
Folks Don’t Want Crypto Regulations
Caitlin Long, a cryptocurrency startup founder and former banking veteran on Wall Street, states that, there are a number of people in this sector who are not in favor of regulations on crypto assets.
Whether they are or are not in its favor, they are coming down the road. And latest regulatory laws will result in a division of 3 factions in cryptocurrency sector. Caitlin elaborated these 3 factions on a podcast.
- Folks in the initial camp are not in favor of regulations at all, pledged to DeFi, very interested in voluntary affiliations, and voluntary here means by which conflicts get settled, no middlemen whatsoever. That is the ‘code of speech’ cluster. And they obviously are going to create some headway, they already have. And she believes that, similar to how bitcoin cannot be banned, rest shouldn’t be banned.
- Those which want to be controlled for getting mainstream large-value markets.
- A minor cluster, involving Custodia, which has been trying to do that for almost 2 years and have gotten Heisman from administrative process.
The 3 Camps
Custodia Bank, Long’s organization (previously Avanti Financial), strategizes to provide banking facilities to cryptocurrency startups, which remained snubbed by larger banks.
She anticipates 1st camp of folks — the ones those who wants no laws on cryptocurrency at all — will remain niche.
Her 2nd camp involves individuals, several Wall Street traders, as well as hedge fund mammoths who have shifted their tune on cryptocurrency during pandemic, now freely allocating a minor percentage of their portfolio to Ethereum and Bitcoin.
Several of them embraced more regulations so that cryptocurrency investing will have security in place and bring in mainstream retail investors — though it is also the instance for a BTC spot ETF, and Securities and Exchange Commissions has kicked it out of favor.
As for the 3rd camp, where Long puts herself and rest who have attempted to play nice with regulators, while developing cryptocurrency businesses, those individuals have broadly varying success levels.
Centralized organizations like CoinBase have majorly complied with feds’ demands, frequently to criticisms from anti-regulation cryptocurrency enthusiasts.
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Source: https://www.thecoinrepublic.com/2022/04/04/rules-will-break-crypto-into-3-factions-says-caitlin-long/