RT @ErikVoorhees@twitter.com: SEC commissioner on CNBC today: "If you want to know what our markets would look like with no securities regulation, the answer is the ICO market.” So... fast growing and full of cutting edge innovation, where adults are able to make decisions with their own money? Sounds awful
https://twitter.com/ErikVoorhees/status/991034194221383681
@ploum
But also full on shameless scams and market manipulations. To think that the absence if regulation is the main, or only, factor driving innovation in the blockchain/cryptocurrency world seems shortsighted and ideological.
@pbuyle : how to prevent scam? I think that educating people is better than "protecting" them.
@pbuyle : you mean "smart enough to fool anyone but the arbitrary people who have the power to protect you and who promised that they will not fool you"?
The smarter scam are perfectly legal and even owned by the state. (even the lotery…)
@ploum
Since you change subject. I 'm curious to see the facts supporting this claim. Have you any numbers comparing state owned lotteries and gambling vs. privately held ones and other scam operations? Otherwise it is just a cheap anti-government claim.
@ploum
And while we are at it, it is interesting you decided to throw in gambling when we were discussing capital investments with a focus on blockchain and regulations.
@ploum
"arbitrary people who have the power"? Are you trying to confirm that your claim that the lack of regulation is the root of prosperity and innovation in the blockchain/crypto-currencies world and your dismissal of ICOs scams and market manipulations are the product of an ideological anarcho-capitalist bias?
@pbuyle : I don't say it's the root of everything. I just say that regulations (in thtsat very specific case) are not there to protect us but to protect those who write the regulation.
@ploum
Even in this specific case, it's not like SEC regulations prevented huge investments and thriving innovation in fintech. I would love to see an actual analysis of ROI and other key metrics in ICO vs. regulated markets.
@pbuyle : it's not like SEC regulation prevented scammers in other area than cryptocurrencies. Scam have always been there (and will always be). In fact, SEC heavily encouraged some scams (subprimes).
Having someone arbitrary deciding what is good for you or not has never been the solution.
@ploum
Again, instead of pushing an ideology with assertions presented as facts, use the opportunity that ICOs and cryptocurrencies are. There is researches to do to validate, or not, your hypothesis with facts. Data for comparison analysis is available.
I'm not saying that regulations are The solution. But I'm not buying it that they are bad and that the ICOs market demonstrate it.
@ploum
Also, for some at least, the subprimes crisis was a almost a direct results of deregulation and the SEC not doing its actual job. So not an issue with regulations per se. But quite the contrary.
@ploum Reducing regulations to "protecting people" and opposing it to education is an ideological bias. Regulations does not necessarily means coercing people into doing what others thinks is good for them.
For instance, requiring investment service providers to provide accurate and comprehensive information (incl. the clear and balanced risks analysis) to wannabe investors. This is both regulation and eduction and helps against scam.
@ploum Yes, education is part of the solution. Hoewever, you will always end up with bad actors smart enough to fool almost everyone. Education alone will never be enough.