> i think it's the coolest thing ever ... anyone can write a contract to automate taking out a loan, investing it, and pulling out the money, develop exotic securities, and bespoke arbitration. anyone can do it regardless of credentials or connections; just a month of learning.
That's all fine, until the SEC come knocking. The only advantage in the crypto space is that you try to skirt financial regulations. Establishing a new broker-dealer, bank, etc, requires a substantial capital investment to meet the minimum regulatory requirements. That gives some crypto companies an advantage (for now), since they can skip all that, but you can see sure that established interests are not taking this lying down and new regulations are in the pipeline. Once the global regulation of cryptocurrency is completed, either crypto will be dead or it will have to play the same rules as the rest of the financial industry.
That's all fine, until the SEC come knocking. The only advantage in the crypto space is that you try to skirt financial regulations. Establishing a new broker-dealer, bank, etc, requires a substantial capital investment to meet the minimum regulatory requirements. That gives some crypto companies an advantage (for now), since they can skip all that, but you can see sure that established interests are not taking this lying down and new regulations are in the pipeline. Once the global regulation of cryptocurrency is completed, either crypto will be dead or it will have to play the same rules as the rest of the financial industry.