Fun

Post-FTX crypto industry needs education before regulation — Former Biden adviser

News Feed - 2024-05-15 08:05:17

Zoltan Vardai12 hours agoPost-FTX crypto industry needs education before regulation — Former Biden adviser“What I preach for is regulation that protects and prevents but does not cripple and destroy [innovation],” the senior adviser told Cointelegraph.953 Total views2 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThe cryptocurrency industry needs to prioritize investor education over stringent regulations as it recovers from the downfall caused by the collapse of the FTX exchange, which resulted in $8.9 billion in user funds lost — according to Moe Vela, former senior adviser to United States President Joe Biden and senior adviser to Unicoin.


Financial education, especially regarding risk management, should be the fundamental concern of the crypto industry, Vela told Cointelegraph in an exclusive interview.


He said:“Education is the fundamental key to empowerment. […] We will not have equality in any form until we have economic parity. We’re not going to have economic parity until we teach people to be, instead of unsophisticated at anything, sophisticated, and that comes through education.”


The senior adviser’s comments come a week after FTX’s new amended proposal was released on May 7. The proposal promises “billions in compensation” for the users and creditors of the bankrupt exchange who have been unable to access their funds since November 2022.


The meltdown of FTX and its over 130 subsidiaries forced regulators to take action and develop investor-safety-oriented regulations, while the United States Securities and Exchange Commission started a crackdown on crypto exchanges to avoid another FTX-like meltdown.


However, instead of regulatory efforts that may stifle digital asset innovation, the industry would benefit more from educating unsophisticated investors, argued Vela:“To my fellow Democrats a bit to my left who are a little overzealous on regulation: Stop it. You’re not doing anybody any favors. It might make you feel good because you think you’re protecting the unsophisticated investor, but rather than then having to overregulate to protect the unsophisticated investor, why don’t we make the investors sophisticated?”


Vela also serves as an adviser for Unicoin, an asset-backed cryptocurrency that aims to reduce the volatility associated with traditional cryptocurrencies. During the launch of the token, Vela learned that risk mitigation is among the most important factors for both traditional and crypto investors. He explained:Moe Vela interview with Cointelegraph. Source: Cointelegraph


Related:Regulators are cracking down on financial privacy, but ZK-proofs can helpThe crypto industry is here to stay, and regulators should take note


Since the crypto industry is becoming an integral part of our future, innovation-friendly regulations remain a key priority, according to Vela:“How do we create regulation that empowers, protects and educates, but does not hinder the growth of this sector? Because this industry is here to stay. It is an integral part of our global future. […] So, let’s foster smart growth and safe growth.”


Following the collapse of FTX, crypto exchanges worldwide have been striving for more transparent operations, spearheaded by Binance, the world’s largest exchange, which could not escape the SEC’s hawkish stance.


In June 2023, the SEC sued Coinbase and Binance for alleged securities violations. In the lawsuit against Binance, the SEC alleged that the company and its founder, Changpeng Zhao, had misappropriated billions of dollars of user funds.


Binance was charged with violating Anti-Money Laundering laws and settled to pay $4.3 billion, one of the largest criminal fines in history.


This type of regulatory enforcement is in contrast with the innovation-friendly approach advocated by Vela, who said:“What I preach for is regulation that protects and prevents but does not cripple and destroy [innovation].”


Related:GameStop tops Bitcoin"s yearly gains in one day — Will GME spark an altcoin rally?# Blockchain# Law# SEC# Bitcoin Regulation# United States# FTX# RegulationAdd reaction

News Feed

Bitcoin bottomed at $56K? BTC price chart hints at breakout within days
Zoltan Vardai7 hours agoBitcoin bottomed at $56K? BTC price chart hints at breakout within daysAdding to the bullish technical formation, Bitcoin"s distribution "danger zone" has officially ended, according to popular an
Arijit Sarkar1 hour agoG20 nations reaffirm responsible use and development of AI technologyThe G20 member nations recommended addressing existing concerns around data protection, biases, appropriate human oversight, and
Paris Hilton’s Roblox experience has driven $60M in media ad equivalency
Tristan Greene5 hours agoParis Hilton’s Roblox experience has driven $60M in media ad equivalencyThe self-proclaimed Queen of the Metaverse sold nearly half a million emotes on Roblox off a viral TikTok campaign.943 To
Bybit Extends Its Reach With Spot Trade Offering
Bybit Extends Its Reach With Spot Trade Offering Adding to the exchange platform’s existing cryptocurrency derivatives products, Bybit will now offer spot
Ukraine’s Kharkiv Art Museum Launches NFT Collection With Binance to Raise Funds, Secure Jobs
Ukraine’s Kharkiv Art Museum Launches NFT Collection With Binance to Raise Funds, Secure Jobs The art museum in the Eastern Ukrainian city of Kharkiv has partnered with cryptocur
Ripple contests $2B SEC fine, says penalty shouldn’t exceed $10M
Ezra Reguerra12 hours agoRipple contests $2B SEC fine, says penalty shouldn’t exceed $10MRipple said in a filing that the SEC’s “Draconian remedial requests” do not have grounds in law or principle.4194 Total vie
Finder’s Fintech Experts Predict Cardano Will End the Year at $0.63 per Unit
Finder"s Fintech Experts Predict Cardano Will End the Year at $0.63 per Unit Following the recently published bitcoin price prediction report issued by the product comparison web p
Yearn Finance Founder Andre Cronje’s New Defi Token KP3R Soars 3,600% 24 Hours After Launch
Yearn Finance Founder Andre Cronje"s New Defi Token KP3R Soars 3,600% 24 Hours After Launch Yearn Finance founder Andre Cronje’s new defi token called KP3R
Bitcoin Price Poised for ‘Imminent’ Breakout As Network Hashrate Hits Record Highs
Bitcoin Price Poised for "Imminent" Breakout As Network Hashrate Hits Record HighsThe price of bitcoin could see an ‘imminent’ breakout, according to the latest Glassnod
Blockchain Gaming Publisher Animoca Brands Secures $75M — Firm’s Pre-Money Valuation Rises to $5.9B
Blockchain Gaming Publisher Animoca Brands Secures $75M — Firm"s Pre-Money Valuation Rises to $5.9B The non-fungible token and blockchain gaming company Animoca Brands has announ
Spellfire Oversubscribed Twice, a Staggering $3.8M Raised
Spellfire Oversubscribed Twice, a Staggering $3.8M Raised sponsored Spellfire Re-Master the Magic, a modern take on classic collectible card games, has completed its private funding
Dacxi Announces Global Tokenized Crowdfunding Solution – the Dacxi Chain
Dacxi Announces Global Tokenized Crowdfunding Solution - the Dacxi Chain press release PRESS RELEASE. Dacxi has announced theDacxi Chain – the world’s first tokenized