The emergence of any new thing in an already existing system is bound to cause mayhem and rub some people in the system wrong. However, it is important to differentiate when the new kid in town takes advantage of their new status and manipulates the system to favor them. The crypto industry came to be in an era when no one knew of its operation, and hence most people had to learn its ways as it grew. Unfortunately, this aspect also applies to the law-making society. This fact leaves a system meant to protect its citizens open to manipulation and the furthering of a few individual agendas. This raises questions such as how protected the citizens who invest in it are, and secondly, is the system being manipulated by those who know better with intentions of ill will?
An Alarming Trajectory
Laws are put in place to protect the citizens and ensure that set industries follow the laws of the land. However, in the last couple of years, there has been an evident bill passing instigated by crypto lobbyists and executives to facilitate favorable rules for their operation. Unfortunately, in most of the bills passed, there is an evident pattern across a couple of states which is worrisome.
For starters, those who are intended to countercheck and ensure that no single bill is meant for the benefit of a singular individual are not only entangled in the debacle due to the lack of knowledge or wanting to profit in the process, but they are also complacent by presenting the exact proposals from the lobbyists without changing any detail. Additionally, the lawmakers do not take the necessary time to peruse what is offered to them and check for loopholes. For example, in a bill passed in Florida, the legislators gave it a thumbs up, making it easier to buy and sell cryptocurrency.
Although this might seem like a good thing for those new in the market, it paves the way for threats of money laundering by destabilizing a law put up to curb it. To make it worse, the legislators took a moment to thank the industry’s stakeholders for helping the state officials to draft the bill as they passed it in 75 seconds of deliberations.
The Hidden Agenda
The crypto industry started as an unharmful industry that most people embraced and invested in. It has therefore seen explosive growth from its inception to the current time. However, even with its many positives, an evident underlying national strategy and plan are getting pushed. As many states race to embrace and satisfy the needs of the crypto industry, especially due to the absence of much-needed regulatory laws, they are, in turn, paving the way to a friendly legal system that will help the continued growth of cryptocurrency companies.
The evident aim to please from most states such as Florida, North Carolina, and Wyoming could leave businesses and the population vulnerable to scams. This aspect has plagued the cryptocurrency industry. One of the major agendas of the industry is to revolutionize the banking system and ecommerce aspects, which can already be witnessed. The best example is in Arizona, where a legislator wants to declare cryptocurrency a legal tender. Such radical steps portray exploitation of the systems while at the same time evading the state’s consumers protection laws.
Inventions are what make life easier and more desirable. However, at the same time, it is vital to honor the fundamental laws that are in place for the main purpose of protecting the industries. Therefore, state legislators should be watchful that in their efforts to be competitive, they won’t roll out the carpet for manipulation, especially with most of them having a limited background in financial regulation.