Despite the fears of some that regulations would be the reason why cryptocurrency falls, and the “bubble” pops, an article by Forbes published on July 30th, 2019 reports that U.S. lawmakers have finally concluded that this wouldn’t be possible.
Even with various governments around the world expressing their disapproval, or straight up making trading illegal, these attempts at restriction have typically proved to be ineffective.
Conclusion Made During Congressional Hearing
The realization that trying to ban bitcoin would be easier said than done was made earlier this week on Tuesday by Chairman Mike Crapo, when a hearing about crypto and blockchain was held by the U.S. Senate Committee on Banking, Housing, and Urban Affairs.
Crapo said:
“If the United States were to decide — and I’m not saying that it should — if the United States were to decide we don’t want cryptocurrency to happen in the United States and tried to ban it, I’m pretty confident we couldn’t succeed in doing that because this is a global innovation.“
Jeremy Allaire, CEO of Circle, said in response that bitcoin’s impact on the U.S. isn’t unique and that governments need to accept that “digital money, will move frictionlessly everywhere in the world at the speed of the internet.”
This sentiment is echoed by comments made earlier last month by Congressman Patrick McHenry, when he said “there’s no capacity to kill bitcoin” in a CNBC interview.
If You Can’t Beat Them, Regulate Them
This leaves us with two options: regulate bitcoin or change monetary policy to become as liquid and provide as much as freedom (if not more) as crypto.
In another Forbes article, economist Saifedean Ammous talks about how the most efficient way for a government to get rid of bitcoin would be to compete with it – to make the economic incentive of using it irrelevant.
With the latter unlikely to happen anytime soon, the more practical decision is to focus efforts on regulation the cryptocurrency.
This isn’t a novel idea, with even the former chair of FDIC advocating this kind of thinking back in late December of 2017.
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