Will Crypto be Banned in the US? The government has been accused of quietly trying to ban it. Three major banks associated with crypto have fallen. Is it the end of the blockchain saga? If you too are looking for answers, read on.
What do the experts say?
American University professor Hilary Allen has written an article advocating for banning crypto. But many experts disagree with Prof. Allen. They believe that regulating the crypto industry, rather than banning it, is a more effective and realistic approach.
Are there any Solid Grounds for Crypto Ban?
No. With crypto being a global industry, other countries won’t agree to ban it, making a ban even more impractical.
A total ban on crypto is unattainable and a mere distraction. The American Congress, courts, and the international community have already rejected the idea.
Key figures in both the Republican and Democratic parties support regulating crypto instead. This means that at the top level, your crypto is safe.
Even if agencies like the SEC and banking regulators try to overstep their boundaries, the courts would likely step in to check them.
What is the Real Cost of Banning Crypto?
By attempting to ban crypto, the US would risk losing talent to other nations that embrace and regulate the industry. Banning crypto would not prevent US consumers from
- Accessing foreign platforms
- Increasing risk and
- Decreasing control
Crypto Benefits Outweigh the Harms
The benefits of crypto, including financial innovation and the development of Defi applications, far outweigh the potential harms. The economic structure of crypto isn’t unique and doesn’t necessarily lead to booms and busts.
Countries can look to examples like the European Union’s MiCA framework for guidance on how to effectively regulate crypto. Good-faith actors can come together across party lines to create proposals that foster innovation and minimize fraud and security risks.
Addressing the Publicity
Calls to ban crypto only distract from and slow down the important efforts to create a safe and innovative environment for the industry. The best path forward is to focus on effective regulation that benefits everyone, not a ban.