Cryptocurrency regulations, which have been on the agenda for the past few days, are being closely followed on the DeFi front as well as the stablecoin front. A number of confirmed reports indicate an increase in measures implemented in cryptocurrency exchanges and stablecoin manufacturers.
The debate over cryptocurrency regulation first began with Coinbase CEO Brian Armstrong’s claim. In a tweet shared last week, the CEO expressed concern that the American government would engage in the activity of regulating private wallets. Then the US Treasury Department said it had met with the G7 countries about cryptocurrency regulation, and there was strong support from the meeting. All of this began just after Facebook announced its stablecoin project, Diem, could be launched by January 2021.
Some fear it could go too far, meaning it could hamper innovation. An SEC commissioner recently said in a speech on DeFi and crypto that the domain and its users could be harmed by such regulations.
The US must learn to embrace the principles of personal freedom
SEC member Hester Peirce says the US needs to learn to embrace the principles of personal freedom underpinned by cryptocurrencies to encourage innovation and provide opportunities for the disenfranchised:
“We need to find a way to embrace the principles of personal freedom that support this technology, as it is out of the old financial system and now becoming widespread. But instead, by editing the properties under the freedom of technology that increases this burden if we stay the power of new technology with limited access to conventional financial system, geographical location, social position, or to provide opportunities to people submissive to an oppressive government as we can’t use restricted autonomy.”