Crypto Firms Face Mounting Legal Pressure Amid Calls for Stricter Oversight
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Crypto firms like FTX, Kraken, and Binance have faced major legal troubles recently for alleged fraud, money laundering, and other violations. Regulators are cracking down.
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Despite the evidence of widespread illegality, some in Congress still defend crypto and want less regulation to encourage "innovation". But crypto's utility remains questionable.
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Crypto lobbyists claim the technology can transfer value instantly without intermediaries and propose uses like preventing currency devaluation in unstable countries. But crypto's extreme volatility undermines these claims.
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Regulators argue existing laws are adequate for overseeing crypto. The recent charges show crypto is used chiefly to evade the law, not for legal innovation. No new rules are needed.
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If crypto wants the benefits of the US financial system, it must follow the same rules as other assets. The cases prove crypto firms can't be trusted to self-police. More oversight is warranted.