Brian Brooks, Performing Comptroller of the Foreign money mentioned the way forward for cryptocurrency rules is within the fingers of the folks, and never the federal government.
He informed Cointelegraph’s Alex Cohen on the LA Blockchain Summit that he believes that change tends to occur slowly. Whereas the Web 1.zero didn’t appear revolutionary, look the place we’re at now.
“In the long run, it’s the market and shoppers that may determine the destiny of crypto regulation, not the federal government,” mentioned Brooks, previously the Chief Authorized Officer at Coinbase.
He defined that the function of the federal government is to arrange a regulatory framework to forestall cash laundering, fraud, and different prison actions — to not construct tech or situation a token.
“The federal government has no historical past to construct merchandise that innovate and supply folks good selections. They don’t situation vacationers checks, American Categorical does. They don’t situation pay as you go playing cards, Citibank does. So why do we predict it’d be completely different in developing a funds instrument?”
As a substitute, the federal government must deal with what it does greatest: establishing guidelines and conducting supervision. “We’re attempting to construct the framework, we’re excited that there are tech corporations popping out with tokens. Let’s marry these two issues up,” he mentioned.
Brooks believes that decentralization is inevitable and makes use of the analogy of how publish workplaces had been the central authority for communication at one time limit, however web P2P communications have made them nearly out of date. He imagines the identical situation will play out for the crypto trade. “Sooner or later finance might look quite a bit like communication right this moment,” he mentioned. “The central authorities might not play as large of a task as they carry out right this moment.”
“I don’t advocate for that, however I additionally don’t resist it — the purpose is that the trendlines are in all probability unstoppable at some degree and we simply have to put a framework round that so that folks don’t get scammed sooner or later any greater than they get scammed right this moment.”
Brooks appears much less involved with the issue of cash laundering in crypto than some officers, and he identified that a lot cash laundering occurs within the present banking system.
“If there are unhealthy actors in crypto, we have to do what we will to cease these actions identical to how we do with the banks. Believing that there’s a future state the place we will remove prison exercise or danger fully, is foolhardy.”
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