Reddit Posts
[ EOTH is an exciting RPG open-world game set in a vast universe filled with adventure and mystery. ]
GQ Magazine to Launch Its First NFT Collection Linked to Real-World Rewards
GQ Magazine to Launch Its First NFT Collection Linked to Real-World Rewards — Holders will have access to a magazine subscription, merchandise and live events
Serious discussion about the current state of the blockchain.
OUTER RING - New mmo - Tech Demo Ready - Beta ready to JUN/JUL
Mentions
For any open questions check here they are still scammers and thieves, don’t exchange there , I’m warning everyone check the link below: https://www.reddit.com/r/ChangeNOW_io/s/E21RC6GQ01
> Digital gold is 100x better Except that Bitcoin lacks one critical [use case](https://www.google.com/search?q=gold+grills&sca_esv=3c0cd88929cc7700&rlz=1CDGOYI_enUS839US840&hl=en-US&udm=2&biw=428&bih=859&sxsrf=ACQVn08iwy_GQ52pL9w9E5UbRRjYnsvGYA%3A1710167533494&ei=7RXvZavqHcGgur8Pl-SYsAc&oq=gold+grills&gs_lp=EhNtb2JpbGUtZ3dzLXdpei1zZXJwIgtnb2xkIGdyaWxsczIEECMYJzIFEAAYgAQyChAAGIAEGIoFGEMyBRAAGIAEMgUQABiABEiOGFCsD1izEnAAeACQAQCYAWOgAZADqgEBNbgBA8gBAPgBAZgCBaACvwPCAgYQABgIGB7CAgYQABgHGB7CAgcQABiABBgNmAMAiAYBkgcDNC4xoAeqEA&sclient=mobile-gws-wiz-serp) over physical gold.
Did you just copy a tweet to Reddit without crediting the autor for the upvotes? https://twitter.com/stackhodler/status/1716491491890155814?t=1NCCGi4YH54Pq6RhAtr1GQ&s=19
You have to follow the narrative, but wich one? I really think that after metaverse, video games (good ones) with crypto could be the next thing. I have been watching GQ (Outer Ring) lately. Anyone knows some interesting project?
After diligently mining a coin for over a year it jumped up to a decent price where I got about 60k from it. Obviously this is an insane amount for someone in debt at the time. I paid off my debts and bought myself a jeep that I had always wanted! This was in 21 and I bought the jeep early 22. [Image](https://scontent-den4-1.xx.fbcdn.net/v/t45.5328-4/260895009_4793102297400409_5119585457410415745_n.jpg?_nc_cat=110&ccb=1-7&_nc_sid=1a0e84&_nc_ohc=0kBWk4Fw2FUAX_H7MXP&_nc_ht=scontent-den4-1.xx&oh=00_AfDetf2rDAr-Qidngi-7aS_eFnETPomN3Poi1UCbYPd2GQ&oe=64BFD46A)
Why would you even use the Keystone app? Why not use a reputable open source one, like Electrum, Specter, Sparrow or Nunchuk. Apart of that the first two of your question depend on the software you use and for Electrum e. g. for both questions it's a "yes". Regarding the cobo or keystone hack or leak, I've never heard anything about that. Here's a nice hw wallet comparison: https://docs.google.com/spreadsheets/d/134GQ4nvOpAFNKO5w0ZvbNGmfczj1PF18AI0BJwzVXx8/htmlview#gid=0
https://youtu.be/ScrGGW0GQ80
It did for a bit but after you do some research I feel a lot more confident. Here is a Pretty helpful video with the ceo that I enjoyed. https://youtu.be/lErosS6M1GQ
GQ. it's a governance token for 4 games and maybe more in the future.
He had to make up for this somehow “According to interviews with Matt Damon, the movie role that he turned down that would have earned him the most money was the lead role in James Cameron's "Avatar." In an interview with GQ magazine in 2011, Damon stated that he was offered a 10% stake in the movie, which went on to become the highest-grossing film of all time, earning over $2.7 billion worldwide. Damon ultimately decided to turn down the role due to scheduling conflicts with other projects.”
He had to make up for this somehow “According to interviews with Matt Damon, the movie role that he turned down that would have earned him the most money was the lead role in James Cameron's "Avatar." In an interview with GQ magazine in 2011, Damon stated that he was offered a 10% stake in the movie, which went on to become the highest-grossing film of all time, earning over $2.7 billion worldwide. Damon ultimately decided to turn down the role due to scheduling conflicts with other projects.”
As an L2, CTSI is quite undervalued, though understandable as blockchain OS isn't on mainnet yet. UFI, LMDA, GQ are some lesser know projects I strongly believe will have good runs when the bull comes judging from their current developments.
GQ magazine is trying hard to get some subscription. Good luck, I am in favor of decentralized free press.
It’s coming back. SBF will be freed, his gf will be voted as GQ’s hottest of 2023, and FTT will go to the moon baby 🚀🚀🚀🚀🚀🚀🚀🌕🌕🌕🌕🌗🌗
Here is a [Nitter link](https://nitter.net/cryptolawus/status/1598405601096527872?s=61&t=kv9MrUnZ7T56C2NFh_M8GQ) for the Twitter thread linked above. Nitter is better for privacy and does not nag you for a login. More information can be found [here](https://nitter.net/about). --- *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/CryptoCurrency) if you have any questions or concerns.*
https://twitter.com/cryptolawus/status/1598405601096527872?s=61&t=kv9MrUnZ7T56C2NFh_M8GQ According to this tweet, there aren’t any clear rules on just how crypto can be registered as securities as insisted by SEC? Anyone knows what’s going on?
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
is there a running list? visa executives reddit pointing the direction. F1 racing Mercedes? Mr GQ Brady WEF. World economic forum
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
just read? https://i.imgur.com/GQ62oW1.png
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** 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.
TVL in Arbitrum has been holding relatively well [compared to other chains](https://twitter.com/shamim066/status/1584164733472870400?s=46&t=TAU3C3gU0Wfeb53Gndq4GQ)