The Crypto Crash Was Caused by Fraudsters—and Regulators | Opinion
— Fraudstersand, Highly volatile tech stock, Morgan stanley, Policymakers, Peak, Inevitable, Caused, Keeps bad actors, Notion — since proven incorrect —, Bubble — 1 min read
The crash that shaved more than $1 trillion of value from the digital-asset industry in the past few weeks was entirely foreseeable, says Caitlin Long. Policymakers should use this opportunity to build a solid regulatory framework that promotes responsible innovation and keeps bad actors at bay. Long: The crash is healthy. It is shaking out many scammers and fraudsters. Sadly, it is also hurting millions of mom-and-pop investors, but vital lessons are emerging. Policymakers must use the time afforded by the crash to prosecute fraudsters and to implement a regulatory regime that fuels responsible innovation, Long says. The fast-money crowd caused bitcoin to trade more like a highly volatile tech stock than an insurance policy against financial system instability, he says. Source