The Crypto Correction Shows the Market Working

This summer has seen chaos in the cryptocurrency market, with major corrections in digital currencies and key crypto institutions. Many looking at this scenario — like former Clinton-era <a href="https://www.theguardian.com/technology/commentisfree/2022/jun/19/the-crypto-crash-all-ponzi-schemes-topple-eventually" rel="noopener ugc nofollow" target="_blank">Labor Secretary Robert Reich</a> — believe these events highlight the need for extensive new regulation of this nascent market, including potentially treating cryptocurrencies as tradable securities. In our view, this is exactly the wrong time to be imposing massive new securities-style regulations. The result would be to strangle this new industry or worse, push it overseas. The right approach is to recognize the most recent correction for what it is: the appropriate — albeit belated — functioning of markets to address widespread overextension. The crypto market may be able to benefit from some broad regulatory guidance and basic guardrails to protect consumers and national security, but we ought not let our zeal for regulation drive this important industry into the ground. <a href="https://thescif.org/the-crypto-correction-shows-the-market-working-b0cdc3d0146f">Learn More</a>