Beware of crypto-statists’ calls for regulation

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A repeating chorus has emerged in cryptocurrency news and it was predictable and at the same time overwhelming in its volume. CNN by way of Alex Sunnarborg and the Winklevoss twins, repeated their breathless calls for regulation of cryptocurrency markets.

Said Sunnarborg; “What would be really good for a market bottom to happen would be for every potential bad thing to happen immediately. I would love to see the SEC come down on people really hard.”

He added, “If the SEC slapped some more of these people around, and essentially maximum pain came onto the market. At that point we would see where, if any, buyers jumped in.”

And also mentioned in the same article is that the Winklevoss twins said back in January of their “Crypto Without Chaos” marketing campaign for their own crypto-exchange, “These technologies can’t flourish and grow without thoughtful regulation that connects them to finance. As long as jurisdictions strike the right balance, we think it’s going to be a huge boon and win for cryptocurrencies.”

So, these guys obviously believe that the “right balance” will benefit themselves most of all and they have the moral high-ground over their competitors. They are willing to use the full force of the United States Federal Government to “level the playing field” for them.

What I find interesting here, and why we are going to decide to cover crypto-statists when they make these calls for state action, is that major media outlets normally ignore this sector. When they do begrudgingly decide to take part in the conversation their decided position is wholly predictable and uninspiring.

Those voices that call for increased government regulation in alternative, or vice, industries are always the one’s being amplified by the media. This fits with a very corporatist model that would keep out smaller, less moneyed businesses, by adding prohibitive compliance costs that only the J.P. Morgan Chase and Goldman Sachs of the world can bear. The very antithesis of the stated goals of cryptocurrency pioneers and advocates.

We here at vicegeek.com will reject this line of thought, both of A) using the overwhelming force of the state for non-violent actions and B) of crony-capitalist policies that hurt only emerging entrepreneurs while shielding billionaire bankers.

Stay tuned as we keep an eye on these stories and more at vicegeek.com

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