Ripple, Binance, and BitMEX – Why does this executive believe regulatory actions have “zero value”?

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The SEC v. Ripple Labs lawsuit has received a lot of attention in recent months. Furthermore, many have questioned and criticised the SEC’s approach to cryptos. Indeed, the SEC’s own commissioners have frequently complained about a lack of regulatory clarity.

Erik Voorhees, founder and CEO of ShapeShift, discussed the aforementioned topic, among other things, on Unchained’s podcast. According to the executive, “dark ominous clouds” continue to hover over the (crypto) market in the United States. Despite efforts such as SEC Commissioner Hester Peirce’s Safe Harbor Proposal, he said, this has been the case.

Is the SEC’s job “zero-value?”

In fact, the exec also went on to suggest that the agency is not going after the people it should go after. Asserting that he would “applaud” if the SEC goes after people who are “lying, stealing, defrauding people,” he added,

“…classifying things as securities or not when it’s just a voluntary exchange between consenting adults, I think adds zero value.”

According to Voorhees, this is what the SEC should instead be doing –

“… just issue warnings or caution. Communicate right. But don’t coerce. Don’t get in the middle of two adults with a voluntary economic exchange transaction. That is antithetical to America. It’s antithetical to markets and I think is only counterproductive and harmful.”

Consider the recent regulatory crackdown on Binance and its executives and even BitMEX for that matter.

“Where was the wrongdoing? Where was the harm? Did BitMex actually harm anyone? Or did they offer a service to other people that volunteered for it? Cause it sounds like it’s the latter.”

In such a case, one might consider decentralised alternatives. According to Voorhees, DAI, the decentralised stablecoin based on ETH, will benefit the most. If more regulations emerge, more users will be able to jump ship and go the decentralised route.

“The actual crime is regulators going after private property and destroying commercial businesses.”

Are stablecoins regulated enough?

The timing of these statements is interesting, especially since they followed Gary Gensler’s own statement on stablecoins. In fact, the ShapeShift exec was quick to hit back at the SEC Chair’s idea of “regulated” stablecoins.

“Well, first of all, they already are regulated. Anyone who’s issuing stablecoins and backing it up with fiat is already under a tremendous amount of financial regulation so we need to remove the idea that stablecoins aren’t regulated.”

In such a case, one might consider decentralised alternatives. According to Voorhees, DAI, the decentralised stablecoin based on ETH, will benefit the most. If more regulations emerge, more users will be able to jump ship and go the decentralised route.

See also  Someone paid $443 for a CryptoPunks NFT and then sold it for $4.4 million in Ethereum.

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