FTX, Luna, and Walls Street all share a common theme: fraud and corruption. The big difference? Traditional finance does it right. Recent events involving the SEC and its war on crypto have caused many people across the financial world to ask questions.
Author and Adjunct Professor at Columbia Business School, Omid Malekan, shares some insights about what’s been going on in the finance world. In a post on X, Malekan posted, “People who sincerely believe that crypto is some unique enabler of bad people doing bad things don’t understand how the rest of the financial system actually works,” adding that engaging in shady processes is okay “because somebody did the paperwork.”
The assault against crypto is a perfect example of the pot calling the kettle black. Investors all across the country are no strangers to suspicious deals, wash trading, and other “unjust” business practices, so why have regulatory agencies — created to protect all investors — shifted immense focus on to the crypto industry? One answer may relate to the idea of control and power. Decentralized finance is a great way to put agency into the hands of investors instead of the social elites. Malekan addresses the imbalance concisely, stating, “If they’d been held to the Binance Standard there’d be hundreds of managing directors in jail and less money for shareholder buybacks (or lobbying). But the bankers were smart enough to never question the game.”
Binance, and other similar companies, have made it easy for millions of people to enter the world of finance, especially those that are “otherwise underprivileged,” so shouldn’t they be applauded instead of buried under litigation and massive fees? Although there are numerous valid concerns with these exchanges and how they operate, they have enabled growth in this industry on a scale that seemed impossible just a decade ago.
For far too long, the laws of the past have been applied to govern this industry; and it has provided a judicial process that is ancient and incompetent. The regulators hoping to seek authority over industry seem to care more about crossing T’s and dotting I’s than the legitimate good being done. Regulatory clarity and legislative reforms are desperately needed for these companies to thrive and operate on the right side of the law — as gray as it currently seems — anything to the contrary is destined for inevitable failure.
Written By: @ReverseBones of The Cardano Times