Top crypto news of the week: A brief review of what were the most notable crypto news of the week so that you do not miss any details about what is happening in the world regarding bitcoin, blockchain and the crypto ecosystem.
Bitcoin was born with a strong libertarian and anarcho-capitalist spirit. From the beginning, free market fundamentalism was believed to keep governments and banks as far away as possible. However, we already know that if we want mass adoption to be a reality, we must moderate this “wild west” attitude.
The reality is this: if we want people’s money, we have to follow some minimum rules. And what happens in the United States is extremely important, due to the relevance of its financial market. Do we want an ETF? You have to meet the requirements. Because the investor also wants protection. In other words, regulation is no longer optional. Regulation is coming, whether we like it or not.
Wealth, asset accumulation or value creation?
Decentralized networks that operate with codes that no one controls are difficult to regulate because they do not depend on any authority. However, people who use these codes are subject to the laws of the country where they live. These people must respect their duties and rights, such as paying taxes or working. Money, especially if it belongs to others, requires care and responsibility. Therefore, we need a law that protects us all.
The regulation of cryptocurrencies in the United States is a complex and constantly evolving issue. In recent years, the US government has taken a number of steps to regulate the cryptocurrency sector, but there is still much to be done. Next year it can be seen that regulators and justice, especially in the United States, will continue to toughen their discourse and take effective measures against “bad actors” in the crypto world.
In November, FTX founder Sam Bankman-Fried was found guilty of all seven charges against him and could still be sentenced to 100 years in prison. Binance and its founder Changpeng Zhao, CZ, admitted guilt to crimes including facilitating money laundering and agreed to pay a fine of $4.3 billion. This purification tends to encourage the entry of institutional investors in 2024, says the Mercado Bitcoin research team. That is to say, what for many is a very negative state intervention, for others is the green light to enter. With regulation, this will be a more mature and reliable market.
The free market is an ideal that defends freedom of exchange and competition between economic agents without the intervention of the State. However, this ideal can become a dogma that denies reality and the problems that arise in the market. Free market fundamentalism taken to the extreme can create an unfair and inefficient market, harming many and benefiting a few.
Is Bitcoin a means to justice and social equity?
Fraudsters and manipulators can abuse an unregulated and uncontrolled market, taking advantage of information asymmetries, market power, negative externalities, and coordination failures to obtain illicit or disproportionate profits. These practices can generate distrust and instability in the market, undermining the confidence of consumers and investors and causing financial and social crises. Furthermore, they can increase inequality and poverty by excluding the most vulnerable and concentrating wealth and power in a few hands.
Therefore, a market without justice is not free. Economic freedom requires a legal and institutional framework that guarantees respect for rights, transparency, fair competition, social responsibility, and the protection of the weakest. Only in this way can we achieve a fairer and more efficient market that promotes the well-being and development of all.
But not everything is black or white. Regulation also has its risks and challenges. On the one hand, it can limit innovation and competition, favoring large players and excluding small ones. On the other hand, it can restrict financial access and inclusion, imposing barriers to entry and bureaucratic requirements. Furthermore, it can generate uncertainty and confusion due to the lack of clarity and coherence between different agencies and jurisdictions. For example, the SEC considers some cryptocurrencies to be securities, while the CFTC considers them commodities. And each state has its own laws and regulations regarding this.
Therefore, what we have to do is fight for adequate regulation. That is, a regulation that does not stop innovation and does not limit access to people. A regulation that protects consumers and investors but also respects the decentralized and autonomous nature of cryptocurrencies. A regulation that encourages collaboration and dialogue between the different actors in the ecosystem, both public and private. A regulation that adapts to the characteristics and needs