Thread. We consider the question. Why regulators in USA are not acting to eradicate the cryptocurrency and NFT pandemic? In other countries they have already taken action.
The answer is as always complicated because everything in Western World has become so complicated there may be no answers to even basic questions: Complexity has increased beyond bounds.
When complexity is extreme, the only possible answers are extreme. This is primarily due to "curse of dimensionality." See slides 24 - 33 of my Dec 2018 M4 presentation in NYC. priceactionlab.com/Blog/2018/12/m…
USA is in better condition than other countries b/c there is certain degree of decentralization of power. There are forces fighting this because they believe central control can achieve their objectives. This is what the Soviet Union thought. Communism ended with Soviet Union.
The problem with cryptocurrencies is that although they offer a solution for decentralization, they do that at an incredible increase in complexity. This is by far a sub-optimal solution to a difficult problem. Complexity is so high that hardening the system is impossible.
Regulators in USA haven't acted because it isn't their job unless there is violation of law. As far as using crypto for currency, this doesn't violate the Coinage Act of 1965, specifically Section 31 U.S.C. 5103. Private agents can use what they like. See: mikeharrisny.medium.com/cryptocurrenci…
In other countries there are different laws about what private business can use as currency. In EU for example, the Treaty prohibits dual currency schemes. Therefore, they can outlaw acceptance of crypto anytime they want.
At the same time, as indicated in recent official reports, crypto is considered a field of innovation. Therefore, they don't want to kill it. Well, innovation plus windfall profits for VCs and schemes that convince the public to part with their money.
I bet the attitude of regulators is "we have them anyway. Let's see where this gets us in terms of tech." At the same time, the impact on employment isn't insignificant at all. Thousands of tech people are now immersed in blockchain and Defi development.
So where do all these get us? Regulators won't get involved with crap like NFTs and pixelized gifs selling for millions through wash sales although few years ago they restricted retail intraday trading by enacting rules and now spend their time discussing order flow sales.
The failure to act will maybe grow a bubble to proportions of "too big to fail." Then everyone will pay for crypto coins and NFTs even if they didn't know what they were all about. But that's the plan.
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