WHY ARE BITCOINS AND CRYPTOCURRENCIES CRASHING AGAIN? (PLUS APECOIN & VECHAIN NEWS)

 

CRYPTO V 

We're going to eventually end up wisome kind of a test that says is this cryptocurrency a commodity a security a currency or something else like artwork and then maybe maybe five more things we haven't even thought of that it'll end up being in the future hey hey welcome back everybody to altcoin daily my name's austin.❤

brian armstrong ceo of coinbase spills the beans on what to expect with crypto regulation in 2022 on a

recent episode of the all-in podcast now this episode is over one hour long i will link it down below but in today's artecle  i want to play you three separate clips that really illustrate what to expect as a crypto investor listen to this first clip of brian explaining that cryptocurrency will be broken up into different categories bitcoins different than nfts it's different than stablecoins and that's how this industry.

will be regulated in his opinion now i do want to preface that with this first clip what brian says is nothing too revolutionary i think we all could have came to this sort of conclusion but i liked this first clip because it does sort of set up what we're about to hear in clip number two and clip number three anyway brian armstrong speaking about regulation watch this i think here's here's what i'm realizing is that crypto is going to be many different things it's not just going to be one regulator um doing it so you know think about cryptocurrencies like bitcoin that's pretty clearly a commodity or ethereum right like many of.

these are commodities that probably should be regulated by the commodities regulators see the cftc now if people want to raise money for their company a security token that should be regulated as a security by the sec that'd be great to have more clarity on that let's have we would love to keep working with the sec to make that a well trodden path that any company can go raise money and that's how it would get listed on an exchange like ours and we could register as a broker-dealer or whatever license is needed um separately there's also some cryptocurrencies that are going to be.

currencies like stable coins and you know maybe the treasury should regulate those and finally there's going to be cryptocurrencies that are none of the above their artwork or something that's probably shouldn't even be regulated and so the u.s with various financial you know international bodies like g20 and fatif and all these imf are probably going to put some policy papers together we'r going to eventually end up with some kind of a test that says is this cryptocurrency a commodity a security a currency or something else like artwork and then maybe maybe five more things we haven't even thought of that it'll end up being in the future all right like the video support this.

content and give me your thoughts on what brian just said down below in the comment section

now in my opinion i think what brianarmstrong was saying was very reasonabl a stable coin is different than a governance token is different than an nft and thus they should be regulated differently that's how i feel but then we get to the more difficult or maybe just maybe just more thought provoking question if something is technicallylabeled as a governance token for example what happens when eighty to ninety percent of the investors in that governance token are just using it as an.

investment are just using it because they view it as a speculative asset that they hope will go up anyway that's the next question here is clip number two and brian armstrong is asked this question directly watch this what would you make the test for this is a utility token versus specul speculative uh security because that seems to be the one that's really hard for people to figure out if 99 of people are buying a token on coinbase because they want to see it appreciate and they want to see it gain value and only one percent are using it for the actual utility of it is it then a security is it by the.

percentage of people who use it how how would you as the the you know the leader in this industry you know uh actually define it what's your definition yeah so i think look i i don't want to be presumptuous here i think that we can we can put some policy papers together but i don't want to be you know it's the policy maker's job to to come up with the policy so i don't want to step on anyone's toes but that being said i think there's some existing case law out there like you know the howie test is something from a long time ago we could probably build upon that so the howie test kind of says you know is this an.

investment in a common enterprise withan expectation of profit and that wouldmake it that would make it a security so  there's a lot of pieces to that you know is it an investment well if you're just giving the tokens away i guess people aren't investing right is it a common enterprise well maybe if it's decentralized and you don't actually control this entity like um you own you know less than a majority share or something maybe then that's not a security right or if there's not an expectation of profit people are using it for something so every startup right now in the space has basically had t hire a bunch of expensive lawyers to go tease apart these old old rules that some of them were created in like the.th 

1930s you know before the internet and everything and try to understand where they're falling and so i think building upon that howie test but it could be something that includes a commodities definition something a currency definition i you know i think we should basically it's on us and the other crypto companies out there to go hire a really smart lawyer who has drafted legislation before and a bill and actually get a draft of it out there and then we can start to circulate it with various.

policy makers and get their feedback and maybe they take it and run with it maybe they say thanks we have it we've got it from here but that's our next step all right great perspective and i especially liked what brian said at the end that we need to be helping steer the policy however big or small that is the hodlers need to be the ones setting the precedence here not these regulatory bodies that don't get it it being crypto and finally that brings us to our third clip sort of the culmination of what

we've been building to in today's artecle  and by the way i do want to thank you for sort of bearing with me my voice sounds a little bit hoarse it is because i was at good times with davey wayne's last night which is a it' a bar in out here in los angeles but please hit the like button help heal my voice i'm gonna get better but this last clip i thought to be the most insightful answering the question well why do we even need regulation wasn't crypto invented to get away from these middlemen i really liked what david friedberg i believe that's his name one of the hosts of the all-in podcast i.

really liked what he said offering some perspective on how regulation came about back in the 1920s i'm just going to let the clip play as is it's about two minutes then i want to share with you my thoughts my opinion on this at the end watch this well some perspective's important which is you know go back to kind of the 1920s in the united states and there were pre-1920s folks would go around and tell tall tales about interesting business ideas or business concepts or things that they.

were going to do if they got a bunch of money from investors and investors gave them money and they didn't actually deliver on what they said they were going to do and they got swindled and there was swindle story after swindle story that you can read about and we saw this even with the ico craze of a few years ago right where people tell a tall tale you expect some value or some asset that you're kind of putting capital into that will pay off over time and there's a swindle behind it and.

that's really the origin of securities laws in large part is to protect the individual from being swindled to protect the storyteller that can take money away from people and figure out how to kind of rip them off um and create a set of laws that the government can then enforce through the risk of imprisonment against doing those things the challenge becomes when there's this more thoughtful way of running capital markets on the other side and how do we actually resolve to some medium ground here i'm not sure that you're going to have as quick of a resolution to say well let's go back to the old way where anyone can say anything to anyone they want and anyone can put money into any.

project that they want because the role of the arbiter is to protect those from being taken advantage of if 85 of those projects are great and 85 percent of the investors are intelligent to know what they're doing it's the 15 it doesn' matter it's the 15 that the government is here to protect and that's the reason we have an institution called the government is to create systems of protection for those who are otherwise unable to protect themselves now a free market libertarian might say.

we should have at it but the problem is we all have we all feel as a group at some point a moral obligation to protect those who are unprotected and that's why these systems emerge over time and that's why these institutions exist that's why the government exists and it's why these securities laws exist and so it's difficult to assume that we can just go back to the kind of you know um prototypical days of you know let me raise money for anything with any story without any regulation and assume that.

it's going to work out well because all it's going to take is a few of these stories before you have folks standing up in congress saying this is unbelievable we can't let this happen anymore let's go shut down the miners let's go shut down the data centers let's go after every asset we can all right really thoughtful perspective in my opinion and to me this sort of says the regulation for this reason is inevitable there's no getting around it just because even if 85 percent of the industry is sound is solid that 15 could and probably would ruin it for the rest of us i don't know if you disagree you can always you can always have the power to let me know but that brings me to my thoughts on regulation in general for crypto.

i think it should be harder for these companies for these token creators it should be harder for them but it should be much easier for the individuals meaning give individuals average people like you like me give them all the power meaning and example number one get rid of the accredited investor rule that gatekeeps wealth creation to already the wealthy so get rid of regulation for the individuals but make regulation much harder for these companies in terms of selling snake oil or making promises that they can't deliver right if you're a company that lies if you try and swindle the regulation should be to protect us from you but it should not punish the individuals that's my view alrighty.