Crypto Regulation
2022.12.01 14:40
Crypto Regulation
Budrigannews.com – As the CEO of crypto, I know that our industry is often criticized and misunderstood. In some cases, the analysis requires attention due to the fact that we usually did not invest in highlighting the usefulness and use cases that contribute to positive changes.
However, in many cases this is due to the incorrect assumption that all players in this sector are the same. In recent years, doubts have become new after an impressive event occurred with FTX – one of the largest crypto traders on the planet, and perhaps the most vivid illustrator of the requirements for administrative control.
There was a huge leap for FTX when they faced insolvency, given their situation. The digital asset market has undergone a significant decline due to the appearance of news. The client himself had to decide whether FTX was reliable, or any other company in our space was a reliable manager of their funds.
I understand that the void left in the industry causes irritation, and many may have a question whether there is a future in cryptography. On the one hand, blockchain and cryptocurrency will exist in the future and we should not forget how useful and valuable this tool is in order to achieve the most important goals, for example, improving the global supply chain, as well as ensuring fair access to global financial systems.
The real question is how to create the future for us that we want, which, first of all, was the impetus for the development of this technique. And the answer in most cases depends on technical and general standards, some of them should come from our civil servants. The US Federal Government has a good chance of leadership.
The adoption of sound regulation based on guidelines should provide the industry with clarity and direction. Since the recent congressional elections, I draw attention to the fact that such leadership will help shape the “right” future. It is very important that the future of blockchain and all its features. Although there is no regulation, industries must act transparently and in the best interests of consumers. However, if there is no supervision, then we still observe cases in which the company does not give priority to the needs of its client.
To provide clients with the necessary protection, I strongly recommend that Congress take three important measures in 2023. To begin explaining the meaning of the legal statuses of an advanced resource: in the case when digital property becomes a commodity, a security or something else in between, explain the meaning of the legal statuses of an advanced resource?
How is this determined? Since consumers are suffering, the government is responsible for explaining this to both large and small participants, but not so that they are obvious.
Thirdly, to make stablecoins a prerequisite: in an instant, the value of $ 60 billion was lost as a result of Terra losing the price of $ 60 billion. Customers need a guarantee that a stable coin must be provided with a high-quality liquid asset at the same time. For the true benefit of the blockchain, stable coins are needed. These rules will benefit customers, which encourages new innovations.
Secondly, the sale of computer resources. As we have seen with the example of the FCS, buyers can get a chance to exchange resources, taking care of it through transactions. While some of them are well known, Congress should make sure that users have the necessary protections in order to use these platforms. I learned the importance of early cooperation with decision-making bodies to help develop new regulatory technologies from my practice in the field of Internet content.
But we didn’t fight, and I learned that from my own bitter experiences. Instead, we asked the government to believe that we can solve the problem ourselves. We thought we knew everything. Although there are certain rules for collecting data on the Internet, none of them were related to the daily data collection carried out by technology companies.
We believed that we could bridge a significant gap by balancing profits and the best interests of our customers. It is now clear that this caused a state of emergency in the field of data protection, in which individuals became the subject, and our general and personal security disappeared before our eyes. It is possible to draw several parallels between this latest technology with blockchain.
“Ecosystems that create goods and services based on this technology continue to cooperate with the public sector in developing standards that ensure clarity and guarantee.” I am burning with my desire to help establish a partnership between the state and the part necessary for a more stable industry, because I understand the infinite potential of blockchain.
I hope the new congress will meet our needs. Denell Dixon, CEO and Executive Director of the Stellar Development Foundation. She was previously the legal director of Yahoo!, Terra Finma, after receiving her law degree from Hastings College at the University of California. She graduated from the University of California, Davis.
