The crypto crises are coming
The new US legislation leaves the industry where it wants to be – without regulatory safeguards
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HAVING adopted one major piece of digital-currency legislation (the Genius Act) and with more pending (the Clarity Act has passed the House of Representatives), the United States is poised to become a major hub for cryptocurrency-related activities, or even – taking President Donald Trump literally – the “crypto capital of the world”. But those who support the new legislation should be careful what they wish for.
Unfortunately, the crypto industry has acquired so much political power – primarily through political donations – that the Genius Act and the Clarity Act have been designed to prevent reasonable regulation. The result will most likely be a boom-bust cycle of epic proportions.
Historically, US financial markets’ major advantage compared to other countries has been relatively greater transparency, which enables investors to gain a deeper understanding of risks and make better-informed decisions.
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