Crypto is part tech, part strong belief. Rules are changing fast. This makes people think hard about what crypto stands for. It also brings new ideas, new ways to use this tech.
- Personal freedom and decentralization are key values in crypto, with individuals seeking control over their finances and data. New rules should be designed to protect these values.
- Decentralization is a core tenet, with the goal of shifting power away from centralized entities and towards users. This can be achieved through clear regulations.
- Regulation can foster innovation by providing clarity and building trust, while also ensuring user safety and preventing misuse.
We talked to some sharp people about this. They know crypto well. They want rules that make sense. They will speak at Consensus 2025. It is a big event. They will be at the People’s Regulatory Roundtable on May 14. It starts at 10 a.m. on the Spotlight Stage. Ivo Entchev will lead the talk. Want to ask a question? Send it to opinion@coindesk.com.
What matters most in crypto? How do we keep those ideas safe when new rules come? We asked them.
Kayvan Sadeghi thinks personal freedom is key. Being your own boss with your money and data. Privacy and not having one person or company in charge (decentralization) help with this. Control in one place lets others watch you. It lets them have too much power.
He says we should show how new tech does what old laws wanted, but better. Laws try to stop people from misusing money they hold for others. But humans can be greedy. Problems come back. Rules for banks and brokers help. But tech can remove the human middleman. This stops the problem at the start.
Think about drunk driving. More laws and checks help a bit. But self-driving cars could stop it completely. New tech has bumps in the road. Risks look different. But we keep the core ideas safe by showing how tech fixes old problems the law already cares about.
Connor Spelliscy sees blockchain giving users clear views, trust, and safety. This happens if rules help it grow. Rules should push for decentralization. This gives users more power over their money and digital stuff. It means they lean less on big companies.
Beyond money, decentralized networks can run social media where you own your data. They can power groups that compete with Big Tech. They can build digital ID tools. These tools help users hide from smart computer programs online.
He believes talking about ‘control’ is the best way to define decentralization in law. If a project passes a test for control, meaning no single group has too much power over its token (the digital coin it uses), it should face fewer rules. His group wrote a paper on this. They talked to many people in crypto to get it right.
Lewis Cohen looks at the people in crypto. The users and builders. They like freedom and decentralization, yes. But it is more than that. For him, working with this group matters most. They are different people. They work hard to build new things. They want a new “Internet of Value.”
He reminds us crypto tools were built by regular people. Not big companies. People gave their time and ideas. They wanted to make the world more linked, more open to everyone.
Michelle Ann Gitlitz says decentralization is her top value. Spreading power out means real digital ownership. It means you can send money or data freely. When power is in one place, rules are needed. These rules must fit the tech. To get rules right, lawmakers must learn how blockchain works. This helps them write rules that keep users’ money safe. It also helps stop money crimes.
She has worked in crypto for ten years. She saw new things like stablecoins grow without clear rules. Good rules help more people use new crypto products. They give builders clear paths. They build trust for users. More crypto projects care about following rules now. This is different from ten years ago.
This opens up chances for companies that build tools to help others follow rules (RegTech). Her company, Change Agents, uses smart computer programs to make this easier. Old banks use old systems. They have data spread everywhere. Rules are different in different places. This makes things hard for them.
Crypto platforms can make following rules easier. Blockchain keeps clear records. It can check things automatically. Records cannot be changed. Crypto platforms are built to connect easily with other tools. Crypto companies can check their rules using their transaction data. They do not have to gather data by hand from many places. This saves time. It stops mistakes. Crypto companies can cut costs on following rules. They can also give better info to rule-makers. This gives them an edge.
David Adlerstein has been a company lawyer for over 20 years. He believes strongly in free markets. People should own things. They should be able to sell them. Business people should test ideas. Adults should make deals freely. These ideas are old in U.S. law. They are also crypto ideas.
Crypto is new. But needing rules for new tech is not new. Airplanes were new once. Rules came for pilot training and safety. Now you can fly almost anywhere. The same can happen with crypto. Rules can allow new software businesses. They can stop money crises and funding for bad groups. It is possible to do both.
New Doors Opening?
Does regulation help new crypto businesses and products? We asked the group.
Kayvan thinks smart rules can help businesses that rely on groups of people working together. New tech makes it easier for small teams to make things. They can share them. They can compete with big companies. Good rules can help these small groups get money. More regular people can join the crypto world. They can gain from being part of these online groups.
Connor says it is hard to say for sure right now. Big banks and companies are looking more at blockchain. This is because rules seem clearer now. Bills about how crypto markets work and about stablecoins are being discussed. But until these bills pass, many good crypto projects will struggle to grow big. He hopes to see more projects in areas like decentralized AI (smart computer programs not run by one company), digital ID, and social media.
He also wants clear rules for new types of groups like DAOs (Decentralized Autonomous Organizations). These groups are run by code and community votes, not a CEO. Clear rules would help them try new things. A new law in Wyoming helps DAOs already. That is a good step.
Lewis says new ideas always find a way. Rules, when they work right, help new ideas grow safely. But rules usually come after people start using new things. They do not lead the way.
He compares it to cars. People built early cars. They drove on dirt paths meant for horses. Then the government built roads. They painted lines. This limited drivers a bit. But it made driving safer. It made it much faster. Car companies kept making better cars. They drove on those roads. The private sector led the way in making cars better.
Rules meant to push one type of tech over another usually do not work well. They mess up the market. People who build new things will keep building. Rule-makers should watch and adapt to these new things. They should not try to control what gets built.
Michelle has seen new things like stablecoins pop up even without clear rules. Stablecoins are crypto coins meant to hold a steady value, like a dollar. Clear rules help more people trust and use new crypto products. This is because builders know the rules. Users feel safer. She sees more crypto projects trying to follow rules now. This is a big change from ten years ago.
This creates a big chance for companies that build tools to help others follow rules (RegTech). Her company helps make this easier using smart computer programs. Old banks have old systems. Their data is messy. Rules are different everywhere. It is hard for them.
Crypto platforms are built to help with rules. Blockchain keeps clear records. It can check things automatically. Records cannot be changed. Crypto platforms are built to connect easily. They can check rules using their transaction data. They do not have to gather data by hand. This saves time. It stops mistakes. Crypto companies can spend less on following rules. They can give better info to rule-makers. This gives them an edge.
David finds many crypto stories interesting. Bitcoin has been around over 16 years. That is old for tech. It holds value well. But he is really excited about stablecoins and tokenizing real things. Like turning a house or a piece of art into a digital token. He thinks people do not fully get how big it is to connect money to a global computer that can run any program.
Money is vital for business. Fast payments that cost little. People without bank accounts using digital dollars. This is just the start. Stablecoins are popular now. New U.S. rules will help more people use them. Getting stablecoin rules right is key. Rules should stop runs on these coins (when everyone tries to cash out at once). They should help stop bad guys using them. They should help different stablecoins work together.
