Crypto scams done on the behest of Ponzi schemes or through hackers by breaching into the security protocols are rampant these days. In order to control this growing menace, it is expected that in the US, Biden Administration will be initiating actions and will introduce crypto regulations. But the real question is whether crypto regulation will be enough to eliminate or even bring a reduction in scams, hacks, and theft attacks.
Kraken is one of the prominent and highly popular crypto trading platforms not only in the US but worldwide as well. This trading platform has recently turned itself into a full-scale financial institution as well alongside a crypto services provider.
Jesse Powell, who is Kraken’s Chief Executive Officer was of the view recently that US Government will be re-determining its crypto stance. In this wake, the Government would also look at the possibility of making the crypto laws more stringent, predicted Powell.
Powell was also interviewed by CNBC where he stated further that he is anticipating a crackdown against crypto in the US. He has grown fears that very soon the US Government will come harsh at cryptocurrencies which would impact digital assets negatively. He was of the view that whether stringent or excessive regulation, they both would be hurting the industry as a whole.
Kraken’s CEO is not alone voicing regarding expected crypto regulation. In fact, his argument has been supported as well as advocated by other crypto experts of the world. Even the public service officers too are echoing the possible stringent crypto regulations. For instance, Janet Yellen, the US Secretary for Treasury, has been found deliberately talking about possible crypto regulations on several occasions during her talks. She has been advocating the same point of view in most of her interviews and in public gatherings as well.
At once she specifically stated that she is aware what the major problems with digital assets are. She added further that she was in the knowledge that cryptocurrencies are misused by drug traffickers for looting and laundering public money. She even went on to state that crypto provides a safe passage to instigators of terrorism and state violence by funding such activities through crypto.
While Jerome Powell who is the Chairman of the Federal Reserve said that crypto assets are inherently flawed i.e. born with huge volatility. He also criticized cryptocurrencies to make a point that they are useless.
This shows that there is a genuine belief amongst global regulators that crypto should be regulated. However, there is apprehension as well that excessive regulation would also be bad for the entire crypto industry. Genuinely the matter is of grave importance which requires a massive thought process at all levels including the stakeholders. Balance has to be brought by creating a difference between proper regulation and excessive regulation.