Acting currency controller Brian Brooks said the future of cryptocurrency regulation is in the hands of the people, not the government.
Cointelegraph Alex Cohen told the Los Angeles blockchain summit that he thinks change is usually slow. While Internet 1.0 doesn’t look revolutionary, look where we are now.
“Ultimately, the market and consumers, not the government, decide the fate of cryptocurrency regulation,” said Brooks, a former legal director at Coinbase.
He explained that the role of the government is to enact rules to prevent money laundering, fraud and other criminal activity, not create technology or issue symbols.
“The government has no history of creating products that are innovative and offer people good choices. They don’t issue travelers checks like American Express does. They don’t issue prepaid cards like Citibank does. So why do we think it would be any different? when do you make a payment instrument? ”
Instead, government should focus on what it does best: rule-making and oversight. “We’re trying to build a framework, we’re glad tech companies have codes. Let’s combine these two things, ”he said.
Brooks believes decentralization is inevitable, and uses an analogy to how post offices were once the central communications authority, but P2P internet connectivity has made it almost obsolete. He imagines the same scenario will end in the cryptocurrency industry. He said: “One day funding can be very similar to communication today. The central government may not play as big a role as it does today. ”
“I am not a supporter of this, but I do not mind either – the point is that the trendline probably cannot be stopped at any level, and we just need to circle it so that people are not fooled in the future than they are fooled in a day.”
Brooks appears to be less concerned about the issue of money laundering in cryptocurrencies than some officials, noting that there is a lot of money laundering going on in the current banking system.
“If there are bad players in cryptocurrency, we must do everything in our power to stop this activity, as we do with banks. It is ruthless to believe that in the future there will be a situation in which we can completely eradicate criminal activity or risk. ”