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Kraken is a Ponzi scheme about to collapse. 1000s of cancelled withdrawal complaints all over

FTC Probes BitMart Exchange Breach, Marking Agency’s First Crypto Case

r/CryptoMarketsSee Post

FTC Sues Meta For Buying Up Competition

r/CryptoCurrencySee Post

5 reasons why we are so bad at market prediction.

r/CryptoCurrencySee Post

FTC Sues Meta to Stop Facebook Parent From 'Owning the Entire Metaverse'

r/CryptoCurrencySee Post

Eth/Usdt Liquidity Mining Scam! Be careful!

r/CryptoMoonShotsSee Post

Massive Scam Alert -

r/CryptoCurrencySee Post

Massive Scam Alert

r/CryptoCurrencySee Post

Crypto scam on “AvaTrade” -help needed

r/CryptoCurrencySee Post

Coinbase telling me my account is unverified - I’ve been trading on it for months?

r/CryptoCurrencySee Post

There are 3 types of scams in Crypto

r/CryptoCurrencySee Post

$1 billion has been lost in cryptocurrency scams since 2021, FTC warns

r/CryptoCurrencySee Post

My 50 year old dad is getting scammed out of his life savings in a crypto scheme and I need your advice

r/CryptoCurrencySee Post

Scammers bring in over $1 billion in crypto craze - FTC report

r/CryptoMarketsSee Post

Crypto scams are now a billion-dollar market

r/CryptoCurrencySee Post

Over 46,000 people report losing more than $1bln in crypto to scams

r/CryptoCurrencySee Post

Crypto Investors Lost $1 Billion in Scams during the Last 15 Months, Says FTC

r/CryptoCurrencySee Post

$1 billion has been lost in cryptocurrency scams since 2021, FTC warns

r/BitcoinSee Post

FTC Report: 46,000 People Lose Over $1 billion to Bitcoin Scams

r/CryptoCurrencySee Post

FTC Says Crypto Scams Cost Consumers Over $1 Billion Since 2021

r/CryptoCurrencySee Post

FTC Reports Consumers Lost $1 Billion to Crypto Fraud Last Year

r/CryptoCurrencySee Post

Crypto scams have raked in more than $1 billion since beginning of 2021, FTC says

r/CryptoCurrenciesSee Post

Bitcoin and other crypto scams are taking more money than ever, FTC says

r/CryptoCurrencySee Post

Bitcoin and other crypto scams are taking more money than ever, FTC says

r/CryptoCurrencySee Post

According to the FTC, since 2021, crypto scams have cost individuals more than $1 billion.

r/CryptoCurrencySee Post

More than 46,000 people have lost more than $1 billion to crypto scams since 2021, says FTC

r/CryptoCurrencySee Post

BitPay scam warning | DO NOT USE BITPAY

r/BitcoinSee Post

Regulation: two birds, one stone. My dark maximalism.

r/CryptoMoonShotsSee Post

Verify Lens Is Live | All-In-One Crypto Research Tool | Review Your Portfolio Today To see How Safe Your Investments Are (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Is Live | All-In-One Crypto Research Tool | Review Your Portfolio Today To see How Safe Your Investments Are | Unique & Needed Use Case With Huge Potential (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Is Live | All-In-One Crypto Research Tool | Review Your Portfolio Today To see How Safe Your Investments Are | Unique & Needed Use Case With Huge Potential (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Is Live | All-In-One Crypto Research Tool | Review Your Portfolio Today To see How Safe Your Investments Are | Unique & Needed Use Case With Huge Potential (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Is Live | All-In-One Crypto Research Tool | Review Your Portfolio Today To see How Safe Your Investments Are | Unique & Needed Use Case With Huge Potential (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Is Live | All-In-One Crypto Research Tool | Review Your Portfolio Today To see How Safe Your Investments Are | Unique & Needed Use Case With Huge Potential (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Is Live | All-In-One Crypto Research Tool | Review Your Portfolio Today To see How Safe Your Investments Are | Unique & Needed Use Case With Huge Potential (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Is Live | All-In-One Crypto Research Tool That Benefits All Types Of Investors | Review Your Portfolio Today | Unique & Needed Use Case With Huge Potential (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Is Live | All-In-One Crypto Research Tool That Benefits All Types Of Investors | Unique & Needed Use Case With Huge Potential | See How Lens Can Help You Today (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Is Live | All-In-One Crypto Research Tool That Benefits All Types Of Investors | Unique & Needed Use Case With Huge Potential | See How Lens Can Help You Today (VRFY)

r/CryptoCurrencySee Post

FTC going after people profiting from making bogus money making claims

r/CryptoMoonShotsSee Post

Verify Lens Is Live | All-In-One Crypto Research Tool That Benefits All Types Of Investors | Unique & Needed Use Case With Huge Potential | See How Lens Can Help You Today (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Is Live | All-In-One Crypto Research Tool That Benefits All Types Of Investors | Unique & Needed Use Case With Huge Potential | See How Lens Can Help You Today (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Is Live | All-In-One Crypto Research Tool That Benefits All Types Of Investors | Unique & Needed Use Case With Huge Potential | See How Lens Can Help You Today (VRFY)

r/CryptoCurrencySee Post

Coinbase wants to charge me to download IRS form 8949

r/CryptoMoonShotsSee Post

Verify Lens Releases Tomorrow | Sneak Peek Video - Learn More Right Now!! | Unique & Needed Use Case With Huge Potential | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Coming This Saturday | Sneak Peek Video - Learn More Right Now!! | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Sneak Peek Video | Coming April 16th - Learn More Right Now!! | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/BitcoinSee Post

I got scammed for bitcoin

r/CryptoMoonShotsSee Post

Verify Lens Sneak Peek Video | Learn More Right Now!! | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Sneak Peek Video | Learn More Right Now!! | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Sneak Peek Video | Learn More Right Now!! | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Sneak Peek Video | Learn More Right Now!! | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Sneak Peek Video | Learn More Right Now!! | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Sneak Peek Video | Learn More Right Now!! | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Sneak Peek Video | Learn More Right Now!! | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Sneak Peek Video | Learn More Right Now!! | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Sneak Peek Video | Learn More Right Now!! | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Early Sneak Peak (Coming This Month!!) | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Early Sneak Peak (Coming This Month!!) | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoCurrencySee Post

Someone scammed over $50k through Crypto among other exchange apps. Is it possible to track this person down? Or chargeback the Coinbase transactions?

r/CryptoMoonShotsSee Post

Verify Lens Early Sneak Peak (Coming This Month!!) | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoCurrencySee Post

USA to sign executive order directing agencies to study cryptocurrencies and a central bank digital currency (CBDC)

r/CryptoMoonShotsSee Post

Verify Lens Sneak Peek Video | Learn More Right Now!! | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Sneak Peek Video | Learn More Right Now!! | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Sneak Peek Video | Learn More Right Now!! | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Coming Soon | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY) | Newest Verify View Video Is Posted

r/CryptoMoonShotsSee Post

Verify Lens Early Sneak Peek | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY) | AMA Tomorrow at 4pm UTC - Don't Miss Out

r/CryptoMoonShotsSee Post

Verify Lens Early Sneak Peak & New YouTube and TikTok Videos | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Early Sneak Peak & New YouTube and TikTok Videos | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoMoonShotsSee Post

Verify AMA On Twitter Today (10:00 PM GMT/UTC) | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/BitcoinSee Post

Do you have to provide an SSN for a crypto account?

r/CryptoMoonShotsSee Post

Verify Lens Early Sneak Peak | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Early Sneak Peak | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoCurrencySee Post

My story with eToro CopyTrader and why I would avoid doing any business with them

r/CryptoMoonShotsSee Post

Verify Lens Early Sneak Peak | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoCurrencySee Post

FTC Warns of Romance Scams Luring People Into Bogus Cryptocurrency Investments

r/CryptoCurrencySee Post

FTC Warns of Romance Scams Luring People Into Bogus Cryptocurrency Investments

r/CryptoMoonShotsSee Post

Verify Lens Early Sneak Peak | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Early Sneak Peak | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoMoonShotsSee Post

Verify Lens Early Sneak Peak | Unique & Needed Use Case With Huge Potential | Enormous Growth Potential With Small Market Cap | Invest Now Before Lens Releases To The Public (VRFY)

r/CryptoMoonShotsSee Post

🔥 Verify Is Paying BNB Dividends to Holders!!! 🔥 Unique & Needed Use Case With Huge Potential 💎 Enormous Growth Potential With Small Market Cap!! 💎 You Won't Find A Use Case Like This That Also Rewards Holders 🚀 Don't Miss Out!!

r/CryptoMoonShotsSee Post

🔥 Verify Is Having A Competition With Big Rewards Starting Now!!! 🔥 Unique & Needed Use Case With Huge Potential 💎 Enormous Growth Potential With Small Market Cap!! 💎 Don't Miss Out!!

r/CryptoCurrencySee Post

“Scammers use social media platforms to promote bogus investment opportunities, and even to connect with people directly as supposed friends to encourage them to invest,” said the FTC.

r/CryptoMoonShotsSee Post

🔥 Verify Is Having A Competition With Big Rewards Starting Now!!! 🔥 Unique & Needed Use Case With Huge Potential 💎 Enormous Growth Potential With Small Market Cap!! 💎 Don't Miss Out!!

r/CryptoMoonShotsSee Post

🚨 What Is Verify Token? 🚨 If You Don't Know, You Should Read This Now 🔥 Verify Is Paying BNB Dividends to Holders!!! 🔥 Unique & Needed Use Case 💎 Small Market Cap 💎 You Won't Find A Use Case Like This That Also Rewards Holders 🚀 Long Roadmap 🚀

r/CryptoMoonShotsSee Post

🚨 What Is Verify Token? 🚨 If You Don't Know, You Should Read This Now 🔥 Verify Is Paying BNB Dividends to Holders!!! 🔥 Unique & Needed Use Case 💎 Small Market Cap 💎 You Won't Find A Use Case Like This That Also Rewards Holders 🚀 Long Roadmap 🚀

r/CryptoMoonShotsSee Post

🚀 HackRead Partners With Verify To Strengthen Security For All 🚀 Verify Is Excited To Work Alongside The Leading Voice In Their Field 🔥 Plus BNB Dividends For Holding VRFY 🔥 Small Market Cap 💎 Don’t Miss Out!! 💎

r/CryptoCurrenciesSee Post

A discussion of the benefits of and costs of cryptocurrency regulation in the US

r/CryptoCurrencySee Post

A discussion of the benefits of and costs of cryptocurrency regulation in the US

r/CryptoMoonShotsSee Post

🚀 HackRead Partners With Verify To Strengthen Security For All 🚀 Verify Is Excited To Work Alongside The Leading Voice In Their Field 🔥 Plus BNB Dividends For Holding VRFY 🔥 Small Market Cap 💎 Don’t Miss Out!! 💎

r/CryptoMoonShotsSee Post

🚀 HackRead Partners With Verify To Strengthen Security For All 🚀 Verify Is Excited To Work Alongside The Leading Voice In Their Field 🔥 Plus BNB Dividends For Holding VRFY 🔥 Small Market Cap 💎 Don’t Miss Out!! 💎

r/CryptoMoonShotsSee Post

🚀 HackRead Partners With Verify To Strengthen Security For All 🚀 Verify Is Excited To Work Alongside The Leading Voice In Their Field 🔥 Plus BNB Dividends For Holding VRFY 🔥 Small Market Cap 💎 Don’t Miss Out!! 💎

r/CryptoCurrencySee Post

Meta's VR division is reportedly under investigation by the FTC

r/CryptoMoonShotsSee Post

🔥 Verify Is Paying BNB Dividends to Holders!!! 🔥 Unique & Needed Use Case With Huge Potential 💎 Enormous Growth Potential With Small Market Cap!! 💎 You Won't Find A Use Case Like This That Also Rewards Holders 🚀 Don't Miss Out!!

r/CryptoCurrencySee Post

Beware! US FTC releases new crypto scam alert

r/CryptoMoonShotsSee Post

🔥 Verify Is Paying BNB Dividends to Holders!!! 🔥 Unique & Needed Use Case With Huge Potential 💎 Enormous Growth Potential With Small Market Cap!! 💎 You Won't Find A Use Case Like This That Also Rewards Holders 🚀 Don't Miss Out!!

r/CryptoCurrencySee Post

Watch Out for This New Crypto Scam, the FTC Warns. Here’s How to Protect Your Investments

r/CryptoCurrencySee Post

A New Scam Directs Victims To Crypto ATMs To Send Money, Warns FTC

r/CryptoCurrencySee Post

Urgent cryptocurrency warning for ALL investors – don't ignore FTC alert

r/CryptoMoonShotsSee Post

🔥 Verify Is Paying BNB Dividends to Holders!!! 🔥 Unique & Needed Use Case With Huge Potential 💎 Enormous Growth Potential With Small Market Cap!! 💎 You Won't Find A Use Case Like This That Also Rewards Holders 🚀 Don't Miss Out!!

r/CryptoCurrencySee Post

People often talk about the potential of DAOs in business cases like acquisitions. If a DAO acquired a business, how would it effectively run it?

Mentions

Busted by the FTC

Mentions:#FTC

FTC vs SEC to see who can win the most cases fastest. Winner gets to regulate.

Mentions:#FTC

The same thing happened to me . Lately scammers find their way into wallets and make unauthorized transaction out of your wallet. I did nothing but sent btc, it showed that it was successful and when I refreshed it all my coins were gone., it was empty. I went ahead and contacted the support team for assistance, but they were unable to assist. So i realized that someone have hacked and redirected my crypto So I filed with the local police station, the FBI, and the FTC but still to no avail . My attorney then advised me to report the case to recoverlostcoin @ cyberservices. com, an expert service against cybercrime which he trusts. I did that and immediately found help. They were able to recover 90% of my bitcoins approximately $36K . Don't hesitate to report now so they can verify , someone might have made an authorized transaction redirecting funds from your wallet.

Mentions:#FTC

This same thing happened to me last year! And the same refusal to provide a reason. I even left a nasty review about it and filed a FTC complaint. I'll be watching out for Gemini class action notices.

Mentions:#FTC

I am in a similar situation (have been waiting for my money to be returned since 15/07). I have just messaged [ftc.sc](https://ftc.sc) (I googled that KuCoin is registered in Seychelles - their "support" conveniently ignored my question re. this) complaining about them. If you guys have any other suggestions which authority could help (maybe some authority overseeing them as a CEX or maybe the customer protection authority in the EU) I would appreciate your suggestions. If you have any experience with FTC, this would also be helpful to know.

Mentions:#CEX#FTC

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

They also need to ask youtube about the continuous crypto scam live streams too. I get at least two a day in my "recommended" list. Where are the lawyers capable of bringing suit against youtube for **recommending** scams to people even after they are reported? Where is the FTC and SEC prosecuting these real crimes?

Mentions:#FTC

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

tldr; The FTC filed a lawsuit against Meta Platforms to block its planned purchase of Within, the VR game developer behind Supernatural and Beat Saber. The FTC alleges that Meta is attempting to stifle VR fitness competition from independent studios by purchasing the studio behind the leading VR fitness app in the space, rather than developing its own rival program. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

Mentions:#FTC#VR#DYOR

> The FTC has long taken issue with Facebook's business practices As have a lot of people. Facebook sucks.

Mentions:#FTC

tldr; "Meta would be one step closer to its ultimate goal of owning the entire 'Metaverse,'" the FTC's complaint says. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

Mentions:#FTC#DYOR

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

tldr; Relationship coach Sarrah Rose was scammed out of $50,000 in cryptocurrency by a man she met on a dating app. "He was having me move my money into an unregulated wallet that I wouldn't be able to get back," she said. Last year, victims lost $139 million in similar crypto-romance scams, according to FTC. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

Mentions:#FTC#DYOR

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

By the year 2030, Crypto will be regulated and managed by the FTC and its lackluster performance due to the Elimination of Dirty Money will render it virtually worthless.

Mentions:#FTC

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

It is common knowledge that FTC/Alameda, Binance and Bitfinex/Tether. Maybe the newsworthy thing is that Coinbase is probably also doing it as one of the more trustworthy exchanges?

Mentions:#FTC

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

I blame this on the FED and Congress that oversee the SEC and FTC. Fuck them. They are the ones to blame for most of this. Oil companies as well.

Mentions:#FED#FTC

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

I think the fact they were staking in ETH liquidity pools to make their interest payments is enough of a red flag to make anyone think twice. I pulled everything out when they first got hit with a cease and desist last year by the FTC for their interest product.

Mentions:#ETH#FTC

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

Not just that, its being treated favorably by the FTC and SEC, never in my wildest dreams would we see such little resistance. They are giving bitcoin property/commodity status, and they are asking for proper disclosures from shitcoin projects, this is as good as any of us could have asked for.

Mentions:#FTC

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

FTC passed on Celsius due to a 2B hole but opened a 500 million dollar line of credit to voyager. I don’t feel like they’d have given that line of credit a week ago just to let them tank this week

Mentions:#FTC

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

#Regulation Pro-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #Regulation - Pro Arguments (Part 1/2) > > - *Disclaimer: reusing my previous argument [from here](https://np.reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hevkdyv/)* > - While I wrote an [entry for the Con Thread](https://np.reddit.com/r/CointestOfficial/comments/r6w0hm/general_concepts_round_regulation_conarguments/hofamky/) outlining some negative aspects of crypto regulation, I'm not fundamentally opposed to crypto regulation. > > - In fact, I think *commonsense*, *impartial* government oversight can be beneficial > > - I want to live in a society where regulation protects citizens from exploitation, pollution, unsafe products, surveillance etc. > > - I think the answer for crypto falls somewhere between the '[do nothing](https://www.cnbc.com/2021/09/28/tesla-ceo-elon-musk-says-us-government-should-avoid-regulating-crypto.html)' approach and the '[omg it's super dangerous regulate it into the ground](https://www.warren.senate.gov/newsroom/press-releases/at-hearing-warren-delivers-remarks-on-digital-currency)' opinion. Regulation does not need to be [the 'death' of crypto](https://www.cnbc.com/2021/09/15/ray-dalio-says-if-bitcoin-is-really-successful-regulators-will-kill-it.html) but rather some growing pains on the road to mass adoption. > > - **TLDR**: > > - Like Brian Brooks (former Acting Comptroller of the Currency, Coinbase General Counsel and Binance US CEO), I agree that the most beneficial regulation would focus on enforcing "[rules for compensating losses and instituting cybersecurity standards](https://decrypt.co/81020/brian-brooks-not-everything-crypto-needs-be-regulated)." > - I hope to see more regulation aimed at protecting consumers from fraud and manipulation, like the [recently proposed U.S. Virtual Currency Market and Regulatory Competitiveness Act and the Virtual Currency Consumer Protection Act](https://soto.house.gov/media/press-releases/soto-introduces-bipartisan-bills-encourage-consumer-protection-and-regulatory). Or the [EU's recently proposed legislation](https://www.consilium.europa.eu\/media/53105/st14067-en21.pdf), as discussed by /u\/BelgianPolitics [here](https://np.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/). > - For a deeper dive, [Coinbase](https://assets.ctfassets.net/c5bd0wqjc7v0/7FhSemtQvq4P4yS7sJCKMj/a98939d651d7ee24a56a897e2d37ef30/coinbase-digital-asset-policy-proposal.pdf) and [Andreessen Horowitz](https://a16z.com/wp-content/uploads/2021/10/How-to-Win-the-Future-1.pdf) put out frameworks for regulation that expand on these points. > > > ##Protect the little guy > > - It's no secret that crypto has long been been plagued by scams > > - Between October 2020 - March 2021, [FTC data showed that crypto scams spiked](https://www.ftc.gov/news-events/press-releases/2021/05/ftc-data-shows-huge-spike-cryptocurrency-investment-scams) 10x in terms of value lost and 12x in terms of complaints received, vs the same period the previous year. Consumers lost $80M in crypto investment scams, with a median reported loss of $1,900. > > - Another study reported at least [355 instances of cryptocurrency scams over a period of 7 months](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf). > > - "[99% of major fraud volume in the second half of 2020 stemmed from ‘rug pulls’ and other exit scams in a pattern eerily reminiscent of the 2017 ICO craze](https://decrypt.co/55787/defi-rug-pulls-were-cryptos-top-fraud-scheme-in-2020-ciphertrace)”. > > - But investors should be smart, DYOR and not FOMO - isn't it your own fault if you YOLO'd into dickbutt.finance and got rugpulled? Why should the government step in? > > - Sure. But there's also a lot of unregulated manipulation in the space that gives exposure and legitimacy to scams. > > - Celebrities and influencers have been [getting paid to promote shitcoins](https://markets.businessinsider.com/news/currencies/kim-kardashian-crypto-ethereum-max-cryptocurrency-regulator-fca-scam-risks-2021-9) since [the 2017 ICO craze](https://www.theverge.com/tldr/2018/7/22/17510130/cryptocurrencies-celebrities-scam-paris-hilton-steven-seagal-akon-mayweather\)): > > >"These posts may have been the first time their millions of followers heard of an ICO. Floyd Mayweather ... told his more than thirteen million followers on Facebook that they should buy “Centra token.” ([Camila Russo, *The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum*](https://www.google.com/books/edition/The_Infinite_Machine/raysDwAAQBAJ?hl=en&gbpv=1&dq=Camila+Russo.+%E2%80%9CThe+Infinite+Machine.%E2%80%9D&printsec=frontcover)) > > - Centra token did not end well, with the founder getting [8 years in jail for fraud](https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/). Meanwhile Mayweather continues to profit off of scams like [EthereumMax, which Kim Kardashian also promoted](https://www.cnbc.com/2021/06/15/kim-kardashian-west-charli-damelio-jake-paul-posting-paid-crypto-ads.html). > > - Legacy financial markets have[ oversight from regulators](https://en.wikipedia.org/wiki/Federal_Trade_Commission#Bureau_of_Consumer_Protection) to protect investors from ponzi schemes and pump and dump manipulation. > > - But the burden often falls on consumers to [report such scams to the SEC](https://www.investing.com/news/cryptocurrency-news/kim-kardashian-has-been-reported-to-the-sec-for-profiting-from-the-ethereummax-scam-2615451) or FTC. > > - When regulators and politicians *do* mention consumer protection and 'people getting hurt' in crypto markets, it's usually through [the lens of volatility](https://fortune.com/2021/09/27/sec-chair-gary-gensler-crypto-spac-regulations). But when it comes to manipulation and scams, regulators pass responsibility onto the little guy rather than enforce systemic oversight of market manipulation: > > - The SEC for example [made a fake ICO landing page](https://www.howeycoins.com/index.html) aimed at educating investors. Thanks guys, all in HoweyCoin. > > - Meanwhile, "*there is virtually no action from regulators or law enforcement agencies to counter these cryptocurrency pump-and-dump schemes* ... *the only regulatory recognition of these schemes is a notice from the US Commodities and Futures Trading Commission (CFTC) [(link)](https://www.cftc.gov/sites/default/files/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf) advising the public to be wary of pump-and-dump manipulation on cryptocurrency exchanges and announcing a reward for whistleblowers who report manipulators.*" [(source)](https://ifrogs.org/PDF/marketMicrostructure_2020/Dhawan_Putnins_2020.pdf) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

Mentions:#FTC#DYOR

I bet FTC isn’t on the list, isn’t that right Mr.Friedman?

Mentions:#FTC