‘Legal rules for cryptos are good’
This is what a Cornell University economics professor says: it is good that there are rules for cryptos that benefit the industry.
The professor’s name is Eswar Prasad, professor of economics at Cornell University. And he shared his thoughts on US President Joe Biden’s crypto executive order. The professor went into what this means for the industry during an interview with CNBC.
Rules for cryptos
He believes that cryptocurrency regulation could benefit the industry. “Ultimately, what this kind of regulation offers the industry is legitimacy.” The industry will then mature and become available to many more people, who will also be more protected.
President Biden on Wednesday issued an executive order over the regulation of cryptocurrencies. The professor explained that the executive order is, in effect, instructing “several US agencies and institutions” to come up with a “comprehensive plan for the regulation of a broad range of digital assets. Including decentralized cryptocurrencies such as Ethereum and Bitcoin. But also stablecoins. It is also exploring the prospect of launching a digital version of the US dollar.
Wild West
The professor said that regulation is definitely needed in all these areas. This is because it is now a bit of the Wild West. Prasad noted: “There is a risk that these technologies could be used for illegal financing. Ultimately, they may not be able to provide the kind of investor protection necessary to ensure retail investors understand the risks of what they are getting into.” Rules give the industry the legitimacy it needs. This allows it to maximize the benefits of these new technologies by reducing the risks.
