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This is such a dangerous attitude. The reason regulators have waited years, despite the facts of the matter being legally obvious, is not wanting to be blamed

This is such a dangerous attitude. The reason regulators have waited years, despite the facts of the matter being legally obvious, is not wanting to be blamed for blowing up the whole ponzi house-of-cards. They've waited until enough such houses blew up on their own, that they feel "the facts have been demonstrated". If you want to know why they didnt "blow up crypto", "five years ago", its because of you -- and this attitude. Without it, vast swathes of online grifts that have ruined peoeple's lives wouldve been blown out the water by now.

modeless 3y ago
The whole point of the regulation is to stop it from blowing up and harming investors. If they wait until after then they have failed at their job.
foodjinn 3y ago
The SEC had a hand in the subprime mortgage crisis, quite literally there is no reason to believe they are regulating on the behalf of anyone except the large banks. They absolutely are not regulating to help "investors" they are regulating to protect big banks like JPMC, just like they did in 08.
- mjburgess 3y ago
  This is genuinely ridiculous. The "big banks" can buy up and own as much of the crytpo ecosystem as they desire, and all the "whales" are "institutional billionaires". Crypto has, for years, been held by "the elite" -- and Andreessen et al. are exactly using it as a system to commit securities fraud. The direction of wealth flow in crypto is from late retail entrants to billionaire major holders who cash out using late entrants. The idea that the SEC, post-collapse-after-collapse, is here to "protect JP Morgan"... i mean, this is a patent lie, misdirection, and act of desperation in trying to set up the SEC as the scapegaot for this exploitative system's failure.
  - foodjinn 3y ago
    I fail to see how that isn't the case when Gensler went to bat for FTX prior to their collapse in similar fashion to the way the SEC behaved in 08, refuses to clarify surrounding the second largest coin in the market, and then comes down on exchanges after years of refusing to clarify what is or is not illegal conduct. They created a situation in which they can choose winners and losers and people are surprised that they're viewed as corrupt? Asinine.
    - mjburgess 3y ago
      Gensler was taken in by the tech angle -- duped by the (false) claim that this was a world-changing technical innovation. He was, for years, convinced that "revolutionary" blockchain technology was a viable peer-to-peer accounting ledger for a wide variety of assets. This is the problem with this area: lots of finance guys with no csci experience; lots of csci guys dumb on finance. Anyone who has enough experience of both worlds runs a mile from all of this, and can see the toxic mixture of IT hype, finance "collectables mania", and grift. The SEC is just catching up to how much the finance industry has been duped by bros-in-shorts talking about "algorithms"
      - foodjinn 3y ago
        The SEC isn't catching up to it when they've explicitly refused to clarify to both the people they are trying to regulate and the lawmakers themselves on what they determine to be a security. The SEC created a situation by which any action could be deemed criminal and only decided to regulate when it was politically expedient to do so. There is no reason to believe they are doing this on behalf of protecting investors, because investors have consistently asked for clarity and the SEC refused to do so, and are only now going after the large exchanges after a rash of traditional finance banking failures. For all of the criticisms against crypto, there is zero reason to believe the SEC is operating in good faith because they have shown time and time again they are not.
        mjburgess 3y ago

modeless 3y ago

The whole point of the regulation is to stop it from blowing up and harming investors. If they wait until after then they have failed at their job.

foodjinn 3y ago

The SEC had a hand in the subprime mortgage crisis, quite literally there is no reason to believe they are regulating on the behalf of anyone except the large banks. They absolutely are not regulating to help "investors" they are regulating to protect big banks like JPMC, just like they did in 08.

mjburgess 3y ago
This is genuinely ridiculous. The "big banks" can buy up and own as much of the crytpo ecosystem as they desire, and all the "whales" are "institutional billionaires". Crypto has, for years, been held by "the elite" -- and Andreessen et al. are exactly using it as a system to commit securities fraud. The direction of wealth flow in crypto is from late retail entrants to billionaire major holders who cash out using late entrants. The idea that the SEC, post-collapse-after-collapse, is here to "protect JP Morgan"... i mean, this is a patent lie, misdirection, and act of desperation in trying to set up the SEC as the scapegaot for this exploitative system's failure.
- foodjinn 3y ago
  I fail to see how that isn't the case when Gensler went to bat for FTX prior to their collapse in similar fashion to the way the SEC behaved in 08, refuses to clarify surrounding the second largest coin in the market, and then comes down on exchanges after years of refusing to clarify what is or is not illegal conduct. They created a situation in which they can choose winners and losers and people are surprised that they're viewed as corrupt? Asinine.
  - mjburgess 3y ago
    Gensler was taken in by the tech angle -- duped by the (false) claim that this was a world-changing technical innovation. He was, for years, convinced that "revolutionary" blockchain technology was a viable peer-to-peer accounting ledger for a wide variety of assets. This is the problem with this area: lots of finance guys with no csci experience; lots of csci guys dumb on finance. Anyone who has enough experience of both worlds runs a mile from all of this, and can see the toxic mixture of IT hype, finance "collectables mania", and grift. The SEC is just catching up to how much the finance industry has been duped by bros-in-shorts talking about "algorithms"
    - foodjinn 3y ago
      The SEC isn't catching up to it when they've explicitly refused to clarify to both the people they are trying to regulate and the lawmakers themselves on what they determine to be a security. The SEC created a situation by which any action could be deemed criminal and only decided to regulate when it was politically expedient to do so. There is no reason to believe they are doing this on behalf of protecting investors, because investors have consistently asked for clarity and the SEC refused to do so, and are only now going after the large exchanges after a rash of traditional finance banking failures. For all of the criticisms against crypto, there is zero reason to believe the SEC is operating in good faith because they have shown time and time again they are not.
      - mjburgess 3y ago