Bankruptcy Courts are Becoming Crypto's Accidental Regulators, Highlighting Need for Real Oversight

Bankruptcy courts have become accidental regulators of crypto due to the lack of oversight and crypto's major insolvencies. This is not an ideal substitute for real regulation.

Bankruptcy proceedings have provided some benefits like demanding disclosure and teaching crypto enthusiasts hard lessons.

However, bankruptcy courts are focused on individual cases, not broader systemic risks or customer protection.

Bankruptcy rulings sometimes seem unfair and harmful to large numbers of innocent people.

These bankruptcies show comprehensive crypto regulation is urgently needed to avoid an even worse crypto winter.