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Many people in the online cryptocurrency business recently had a strange outburst, advocating their holdings as the only option in an uncertain environment and challenging anyone who disagrees, even if they have substantial financial skills.
According to Reuters, this is how it's described: SEC has accused blockchain publishing company LBank of selling unregistered securities; LBRY Inc. has responded with a tweet that it is "done being polite" and would engage in psychological warfare in its fight against the SEC."
Perhaps it's a little too harsh of an account. LBRY's employees appear to believe that the SEC has been unfair and excessively harsh in its treatment of the company.
Playing nice with the SEC for 4 years has gotten us absolutely nowhere.
— LBRY 🚀 (@LBRYcom) March 16, 2022
We're done being nice to these monsters.
Whether you asked your lawyers if you could do it and they said no, was it really as big of a joke as it seemed? And the "psychological warfare" was supposed to be a joke about meeting the SEC sweaty and after eating garlic.
In any case, regulators will not be impressed if you try to construct a PR campaign to appease your fans. Francine McKenna, a journalist and CPA, said, "Swagger is not a strategy." As she points out, it hasn't worked for a large number of businesses yet.
Swagger is not a strategy. https://t.co/K39l1FNwN8
— Francine McKenna (@retheauditors) March 21, 2022
Cryptocurrency professionals often have little idea how regulation actually works, and instead regard it as a roadblock put up by bureaucrats who are unable to accept change for its own sake.
Regulators have a tendency to make things take a long time. For a certain goal, it's important to have conduct that can be predicted and is consistent with accepted norms. The SEC has two main objectives. "Main Street investors," often known as "consumer or retail investors," should be protected in the long term. Those who don't have a lot of money or resources to keep their retirement funds safe are these people.
Even those who appear to be well-prepared can fail miserably. Theranos was a financial disaster, but it wasn't in crypto.)
It's also important to "[r]ecognize significant developments and trends in our evolving capital markets and modify our efforts so that we are effectively deploying our resources." When it comes to market regulation, the SEC needs to stay up to date on technological advancements.
The cryptocurrency aficionados, on the other hand, prefer to view cryptocurrencies in one of two ways. One option is a decentralized financial system that does not rely on central banks. They believe that even if governments and the global economy collapse, people will still be able to buy and sell with the help of cryptocurrency.
This point of view is unrealistic because it fails to take into account the intricate web of interdependence that is the world of money. As long as the world's infrastructure is able to support business transactions on all levels, the vast interconnected majority that uses more traditional forms of finance would cause so much strife and disruption that decentralized finance would not have a chance of working because of its reliance on communications systems that are part of the bigger global infrastructure
Furthermore, this isn't the first time decentralized finance has been attempted, and the outcomes have been less than encouraging. Many cultures around the world have practiced this for centuries. As a result of the myriad of issues that would arise if everyone was free to print their own money, the already regulated system was deemed the only viable option. They didn't have the communication and technological capabilities that we have now, but the same human difficulties of trust, whether or not a currency would remain afloat or not, remain. Because of the extreme volatility of cryptocurrencies, relying on it for everyday transactions might generate times where no one could predict the value of their assets from one day to the next. That's already a fact of history, in a variety of ways.
Alternatively, proponents of cryptocurrency sometimes argue that it is an excellent investment and a true kind of value holding. The first step is to deal with the volatility of the market. Since there have been some high-profile incidents using cryptocurrencies, it's not safe to believe that there are no firms that could go astray.
A number of people are furious, regardless of the firm. You can see why: They're placing large bets on the future, working very hard, and then getting stymied by something that should have been evident from the start of the risk management process. There is nothing out of the ordinary about lawyers and financial gurus trying to tell people this.
Anger and impatience aren't solutions, and neither is blaming others. In part, this is due to the vested interests of those in charge, but it is also owing to the inability of large mechanisms to undergo rapid change. Developing a new version takes time and care because it has to learn to fill in all the gaps left by the previous one's performance.
This is exactly the kind of conservatism that Edmund Burke advocated. Rushing to change must be aware of the risk of losing the old and never realizing the new, and leaving turmoil in its wake if the transition fails.
It takes time to fundamentally alter the world. As a leader, if you don't understand that a major transition involves both effort and persistence, you may not be ready to take the helm because you haven't yet reached adulthood.
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