We collect cookies to analyze our website traffic and performance; we never collect any personal data. Cookie Policy
Accept
The Tycoon Herald
  • Trending
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Money
    • Crypto / NFT
  • Innovation
  • Lifestyle
    • Lifestyle
    • Food
    • Travel
    • Fashion
    • Leadership
  • Health
  • Sports
  • Entertainment
Reading: Crypto Regulation Should Begin With Whales, Not Tokens
Sign In
The Tycoon HeraldThe Tycoon Herald
Font ResizerAa
Search
  • Trending
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Money
    • Crypto / NFT
  • Innovation
  • Lifestyle
    • Lifestyle
    • Food
    • Travel
    • Fashion
    • Leadership
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© Tycoon Herald. All Rights Reserved.
Crypto Regulation Should Begin With Whales, Not Tokens
The Tycoon Herald > Money > Crypto Regulation Should Begin With Whales, Not Tokens
Money

Crypto Regulation Should Begin With Whales, Not Tokens

Tycoon Herald
By Tycoon Herald 5 Min Read Published September 11, 2021
Share
SHARE

Getty Images

Getty Images

Regulatory crackdown is here for crypto. As usual, it centers on whether certain offerings should be classified as securities. Because if something is a security in the government’s eyes, a lot of regulatory strings start getting attached.

I think this is barking up the wrong tree. The risk in crypto is not in products, it’s in people. If regulators shift their focus in that direction, there’s a way everyone can win.

Start at square one. The government’s mission is to protect investors. From what? Mostly the behavior of bad actors. Bad actors in the financial realm take the role of leaders (Elizabeth Holmes) and con artists (Bernie Madoff). There are of course regulations that aim to limit individuals from market or systemic risk, but those risks are rarely known before they do damage. The regulatory system is mostly to deter and detect bad actors.

There’s a big catch applying this to crypto-land. There are no authorities or institutional checkpoints in the cryptographic architecture. No one has access to alter any of the fundamental properties of each token. It’s all there, transparent, and in the instances where it can adapt and change, it does so according to a pre-set protocol.

The risk to crypto investors is not that they might one day find out that the product they bought isn’t what they were told. There’s no faking blood samples or cooking the books. The risk in crypto is the volatility that’s inherent to the asset class. The risk is that at any moment, the price of the thing they bought can come crashing down without reason or warning.

It follows that the people who pose a threat are those with the most ability to move the markets.

Those people are whales, investment vehicle providers, fund managers, token creators. The crypto VIP. In this new wild west, they have the effective power of an activist investor — something between a CEO and a hedge fund. It makes sense to begin regulation by imposing trading rules and disclosure requirements akin to the constraints of these groups in traditional markets, to crypto owners who meet some certain market-cap threshold in any given asset. Of course, that would mean transparency of wallets and ownership, which could indeed be a herculean task… but the IRS may well be laying the groundwork for bringing some of this anonymity out of the shadows already.

MORE FOR YOU

Corporate CEOs today can trade their stock but must file advance warnings and each move is registered with the SEC. Hedge-funds with assets over $100 million must disclose holdings quarterly. Employees at financial institutions with access to non-public information are subject to onerous trading rules and holding periods.

Adapting these rules to the crypto world would bring important transparency to an industry that’s subject to huge swings based on the words and actions of its biggest investors and proselytizers – Example No. 1 being Mr. Elon Musk and dogecoin.

Take this argument to the extreme and it may even open a path to avoiding the securities label.

To classify as a security, the owner must have an expectation of profits from the investment.

If the government disallowed crypto VIPs to exchange their tokens for anything other than goods or services, for a minimum period of say, five years, it would be a bold demonstration that these tokens are more like currencies or a commodity like gold. No trading or conversion to dollars; only point-of-sale transactions. If crypto holders truly believe what they say, they should be more than happy to hang onto their currency for as long as the government requires.

Regulators need not worry that investors don’t know what they’re buying. We should all worry about extreme, crushing volatility. Build the guardrails around those who have the power to create it, and everyone wins.

You Might Also Like

Residing Paycheck to Paycheck: 9 Genius Methods To Cease It Ceaselessly – Dollarsanity

10 Tricks to Reside Frugally After Retirement – Dollarsanity

Tips on how to Price range Your Money Utilizing Dave Ramsey’s Budgeting Percentages – Dollarsanity

How To Make A Funds: 12 Simple Methods To Do It (The Full Information) – Dollarsanity

10 Outdated-Normal Cleansing Suggestions from Grandma – Dollarsanity

TAGGED:MoneyThe Forbes Journal
Share This Article
Facebook Twitter Email Copy Link Print
Demi Lovato’s Crew Eyeing Attainable Tour After Followers Crash L.A. Present Queue
Entertainment

Demi Lovato’s Crew Eyeing Attainable Tour After Followers Crash L.A. Present Queue

Demi Lovato Tour Talks Warmth Up!!! After Ticket Chaos Over L.A. Present Revealed October 13, 2025 5:38 PM PDT Demi Lovato's one-night-only Los Angeles present won't keep that method for…

By Tycoon Herald 2 Min Read
Madagascar’s president flees nation in worry for his life after army rebel
October 14, 2025
Mitt Romney’s Sister-in-Regulation Discovered Useless Close to SoCal Buying Mall
October 14, 2025
Martin Odegaard damage: Arsenal midfielder set to overlook one other six weeks with knee damage suffered in opposition to West Ham – Paper Speak
October 13, 2025
The 2025 Hair Development Report: Pure Texture, Redefined | FashionBeans
October 13, 2025

You Might Also Like

Wedding ceremony On A Funds: Get K-Like Wedding ceremony For K or Much less – Dollarsanity
Money

Wedding ceremony On A Funds: Get $30K-Like Wedding ceremony For $5K or Much less – Dollarsanity

By Tycoon Herald 19 Min Read
80 Issues I Stopped Shopping for to Save Money Quick and Pay Off Debt – Dollarsanity
Money

80 Issues I Stopped Shopping for to Save Money Quick and Pay Off Debt – Dollarsanity

By Tycoon Herald 38 Min Read
50 Small Business Concepts For Ladies – Dollarsanity
Money

50 Small Business Concepts For Ladies – Dollarsanity

By Tycoon Herald 35 Min Read

More Popular from Tycoon Herald

MEET THE FATHER OF COADUNATE ECONOMIC MODEL
BusinessTrending

MEET THE FATHER OF COADUNATE ECONOMIC MODEL

By Tycoon Herald 2 Min Read
Woman Sentenced to 7 Days in Jail for Walking in Yellowstone’s Thermal Area

Woman Sentenced to 7 Days in Jail for Walking in Yellowstone’s Thermal Area

By Tycoon Herald
Empowering Fintech Innovation: Swiss Options Partners with Stripe to Transform Digital Payments
InnovationTrending

Empowering Fintech Innovation: Swiss Options Partners with Stripe to Transform Digital Payments

By Tycoon Herald 7 Min Read
Sports

Vitality Roses in New Zealand: England seal Taini Jamison Trophy with one other gorgeous win

Vitality Roses claimed a surprising 59-55 victory towards New Zealand to take an unassailable 2-0 lead…

By Tycoon Herald
Sports

Thomas Partey: The important thing questions on former Arsenal midfielder charged with 5 counts of rape and one depend of sexual assault

Sky Sports activities appears on the key questions surrounding the case of Thomas Partey, the previous…

By Tycoon Herald
Trending

U.S. Blew Up a C.I.A. Post Used to Evacuate At-Risk Afghans

A controlled detonation by American forces that was heard throughout Kabul has destroyed Eagle Base, the…

By Tycoon Herald
Leadership

Northern Lights: 17 Best Places To See Them In 2021

Who doesn’t dream of seeing the northern lights? According to a new survey conducted by Hilton, 59% of Americans…

By Tycoon Herald
Real Estate

Exploring Bigfork, Montana: A Little Town On A Big Pond

Bigfork, Montana, offers picturesque paradise in the northern wilderness. National Parks Realty With the melting of…

By Tycoon Herald
Leadership

Leaders Need To Know Character Could Be Vital For Corporate Culture

Disney's unique culture encourages young employees to turn up for work with smiles on their faces.…

By Tycoon Herald
The Tycoon Herald

Tycoon Herald: Your instant connection to breaking stories and live updates. Stay informed with our real-time coverage across politics, tech, entertainment, and more. Your reliable source for 24/7 news.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact Us

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Terms of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices
© Tycoon Herald. All Rights Reserved.
Welcome Back!

Sign in to your account

Lost your password?