Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
Billionaire Bill Ackman Discusses Crypto Regulation – Says Industry Must Self-Police or Risk Shutdown – Regulation Bitcoin News
Billionaire Bill Ackman has warned that the crypto industry must self-police or risk being shut down. He added that regulators need more resources to monitor the bad actors in the crypto space, and it will likely take years to catch up.
Bill Ackman on crypto regulation and the need for industry to self-police
Billionaire Bill Ackman shared his thoughts on a variety of crypto-related topics, including crypto regulation, in a series of tweets on Saturday.
Ackman is the CEO and portfolio manager of Pershing Square Capital Management, a registered investment adviser with the US Securities and Exchange Commission (SEC). His current net worth is around $3.5 billion.
Regarding cryptocurrency regulation, he said: “I’m not sure we need new rules. Much of the fraud that takes place is old-fashioned pump and dump schemes and the failure of custodians to protect customer assets.”
The manager continued: “I suspect that existing anti-fraud and other laws already govern these breaches. We just need more enforcement.” Ackman opined:
Regulators need more resources to police the bad actors. Unfortunately, it will likely take years for regulators to catch up, and they may never get there. The crypto industry must therefore self-police and weed out the bad actors, otherwise it is in danger of being shut down.
The collapse of FTX, a major cryptocurrency exchange, earlier this month has prompted many to call for stricter crypto regulation.
Some people have emphasized that the FTX meltdown is not a crypto glitch, including Mark Cuban and Robert Kiyosaki. US Congressman Tom Emmer believes it is a failure of the SEC, Chairman Gary Gensler, FTX co-founder Sam Bankman-Fried and centralized finance.
Ackman further described, “Crypto remains the Wild West since the same protections of registered security offerings do not exist,” elaborating:
Therefore, the character, reputation and track record of the management teams and sponsors of crypto-based businesses are extremely critical in choosing which projects to support.
Last week, the billionaire said: “Crypto is here to stay, and with the right oversight and regulation, it has the potential to greatly benefit society and boost the global economy.” He added: “All legitimate participants in the crypto ecosystem should therefore be strongly incentivized to expose and eliminate fraudulent actors, as they greatly increase the risk of regulatory intervention that will set back the positive potential impact of crypto for generations.”
What do you think of billionaire Bill Ackman’s comments? Let us know in the comments section below.
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