A former advisor to President Biden argues that education should take precedence over tight regulation in the crypto ecosystem.
“What I preach for is regulation that protects and prevents but does not cripple and destroy [innovation],” the analyst stated in an interview.
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Crypto Industry Pushes for Education Over Strict Rules After FTX Collapse
The crypto industry is calling for investor education over harsh regulations as it recovers from the FTX exchange crash.
The collapse locked away $8.9 billion in user funds.
Moe Vela, a former advisor to President Biden, in an interview, believes teaching people about crypto risk management is key.
He says a well-informed investor is a powerful investor.
Source: YouTube
In the interview, Vela said “Education is the fundamental key to empowerment… We will not have equality in any form until we have economic parity.
We’re not going to have economic parity until we teach people to be, instead of unsophisticated at anything, sophisticated, and that comes through education.”
Vela’s comments come after FTX promised “billions in compensation” to users who lost access to their funds.
This follows a wave of regulatory action aimed at protecting investors.
However, Vela argues that stricter rules could restrain innovation.
Instead, he proposes educating people to become “sophisticated” crypto users.
Vela’s experience with asset-backed cryptocurrencies reinforces his belief in risk education for both traditional and crypto investors.
Vela Advocates for Smart Regulations in the Crypto Industry
According to Vela, the crypto industry is becoming an important part of our future. Because of this, regulations that allow for innovation are a top priority.
In the interview, Vela asks, “How do we create regulations that empower, protect, and educate people? But do not slow down the growth of this sector?
This industry is here to stay. It is an integral part of our global future. So, let’s encourage smart growth and safe growth.”
Vela believes regulations should help educate and protect people in crypto.
But they should not prevent the crypto industry from growing and innovating, since it is becoming a key part of the global future.
Recall that, in June 2023, the U.S. SEC filed a lawsuit against major crypto exchanges Coinbase and Binance for alleged security law violations.
Binance, along with its former founder Changpeng Zhao, was accused of misusing billions of customer funds in the lawsuit.
However, there was no evidence found to support these assertions.
This harsh regulatory action against Binance contrasts with the approach Vela is standing for.
Vela stated: “What I preach for is regulation that protects and prevents but does not cripple and destroy [innovation].”
