Cryptocurrency used to be going to the moon. Now, winter is coming, and surviving the daily dips has been an exercise of restraint and patience. Still, most crypto-billionaires are now just crypto-hundred-millionaires. Naturally, the crypto crash has significantly affected those with an extensive portfolio. Instead of the significant and steady gains, the market got accustomed to, even the most stable currencies plummeted through the floor or even went extinct (RIP Luna).
New York Attorney General Letitia James has stepped in to pile on to the beleaguered (and mostly misunderstood) commodities/securities/currency industry. James urges New York crypto investors to contact her office if they have been deceived or affected by the crypto crash (that's everyone).
Christopher Warren, Managing Partner at Warren Law Group, comments, "Instead of being involved in developing and implementing regulations appropriately tailored to the unique challenges and opportunities presented by blockchain and Web 3, the State of New York wants to establish a moratorium on mining operations. See Bill S 6486D. Despite the dubious success of a moratorium on an intentionally decentralized global technology, it would be far more productive and pragmatic for our legislature to innovate and work with blockchain and Fintech companies, not against them."
Ms. James' call for anyone affected by the crypto meltdown (everyone) or employees of dissolved cryptocurrency platforms to blow the whistle will likely not solve problems, only creating unnecessary government investigations into the thousands of Fintech startups in New York City. There is still a lack of clarity on the government's position on what is being regulated and what is not.
It is the right of cryptocurrency, fintech, and financial securities firms to engage in commerce with clear rules, guidelines, and standards. The State of New York should be working with cryptocurrency companies, not oppressing them or forcing them to relocate out of New York.
The New York Attorney General, SEC, and other regulators are very quick to call for buzzword investigations, despite a complete dearth of guidance, regulation, or even some commonsense legislation, on how cryptocurrencies and blockchain innovations are being implemented. In fact, the two primary federal agencies dealing with these issues, the SEC and CFTC, can't even agree if cryptocurrencies are securities or commodities. The Attorney General's statement implies that she intends to "regulate through enforcement.
In the current environment, proper corporate governance and counsel on securities and blockchain regulation developments are imperative to defend against government overreach.
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