Whenever the people orchestrate answers for the problems our government creates, it becomes impossible to keep them going. The government consistently wants to stick its nose in the situation and make a mess of things. Given the innovation of cryptocurrency, the impact it has had on American society, and the huge glut it produced for the global financial institution, it was only a matter of time before the Securities and Exchange Commission (SEC) got involved.
The SEC has been dipping their toe in the water for some time now, but it wasn’t until the recent collapse of BlockFi and FTX that the SEC decided to take a new strategy. Coming out with a new “regulation via enforcement” strategy, industry reps, policymakers, and crypto consumers are all questioning what they are really looking to do. With the SEC trumpeting more for control instead of policy, it would seem that the leftists are upset.
Coming up with cryptocurrency was a way to prevent the powers that be from taking over. With worries that the government would come up with an all-digital global currency, crypto was an idea by and for the people. By avoiding government involvement, the idea was to ensure that things stayed open-sourced. No secrets about how the currency was mined, but it would provide anonymity. People could buy and sell goods and services without having to have them recorded. It was what cash originated as but on a global scale.
An idea like this would seemingly be right up the alley of the liberals. Yet, they have shown nothing but discontent for it. Instead, they want the American people to get away from that and instead trust the government to take care of the people. Their goal for a communist agenda is in direct conflict with the agenda for cryptocurrency. By choosing to push the liberal agenda they are putting the needs of a few over the many.
With the GOP taking back over Congress, they are going after the SEC for their attempts to force their way in. With BlockFi filing for bankruptcy despite providing a savings-based crypto market with dividends, they showcased just the tip of corruption that is possible in this industry. With the SEC being investigated for their hand in tying together BlockFi with FTX, and subsequently crashing both companies, many are wondering what they were doing there in the first place.
As it stands BlockFi is trying to reorganize and they still have to pay the SEC tens of millions of dollars for their illegal activities, and the scandal over FTX is reaching heavily into their accounts. Given that the SEC has never been approved by Congress to stick their nose in crypto, many see its actions as highly illegal.
Given that the SEC was invented by Congress following the Great Depression, it would seem as if they have not only forgotten their roots, but also what they exist for. They aren’t there to protect or crash companies. They aren’t there to advocate for special interest groups or political parties. However, they are there to protect the people from losing their money, as well as punish organizations that defraud their clients. As crypto is by and for the people, it is outside their scope of responsibility.
Congress thus far has focused on why the SEC seems more interested in getting headlines for crypto instead of going after the truly nefarious. While they shouldn’t even be there in the first place, their contempt for the system and directed energy toward a few specific currencies and exchanges give the implication of not only high improprieties but also misuse of government funds.
The crypto market needs clarity. By keeping the SEC either out of crypto or authorizing their involvement in specific areas Congress can help provide some clarity to the industry. If they fail to provide it, they will just tank it in murky waters. Either get involved properly and on the up-and-up or stay out, just do it with the approval of crypto investors.