Don ’t Push Crypto Offshore, Don’t Outlaw Disruptive Innovation

Jack SoloweyU.S. regulators arecracking down on crypto. Aggressive enforcement actions,cautionary guidance, and continuingrefusals to provide crypto projects with clear approval pathways are threatening to make the U.S. an increasingly difficult place for crypto entrepreneurs, developers, and users.Some welcome this, consideringhostility to crypto a policy feature, not a bug. However, wishing and pushing away a potentially disruptive technology is no long ‐​term solution, even for those who fear disruption. Instead, policymakers should take a risk ‐​based approach to crypto technology, addressing potential downsides with tailored mitigation strategies (such asrelevantdisclosureframeworksandactions against fraud) while otherwise letting technological experimentation and progress proceed. Nudging crypto developmentaway from American shores would not only be a loss for Americans ’ autonomy and choice, but also a strategic mistake for the United States across multiple domains: hard power, technological innovation, and economic dynamism.That the United States will lose thehard ‐​power benefits from the dollar ’s status as the world’s reserve currency is a perennial concern. But as mycolleague Nick Anthony explains, both non ‐​pegged cryptocurrencies and dollar‐​denominated stablecoins can serve to strengthen the dollar’s global role by providing healthy competition and complementary enhancements (e.g., f...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs