Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
Editorials & Other Articles
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Robert Reich: "NO to CRYPTO"
Link: https://robertreich.substack.com/p/no-to-crypto
I’m sorry to say that several Democratic senators appear willing to support the CLARITY Act—a sweeping pro-crypto bill that will be voted on next week. All they’re demanding is that Republicans agree to a few cosmetic changes such as a slight toughening of ethics rules, a modest expansion of law-enforcement authority, and a tad-bit strengthening of financial regulators.
All worthwhile improvements, but they don’t cure the bill’s fundamental defects. Let me get right to the point. Congress should not enact legislation that further legitimizes and expands an industry whose promised public benefits are zilch while its costs and risks are increasing by the day.
There’s simply no legitimate use for crypto. Its only practical uses are tax evasion, money laundering, fraud, speculation, and crime.
...snip... The CLARITY Act would narrow the authority of the Securities and Exchange Commission over digital assets and give authority over crypto to the Commodity Futures Trading Commission.
This means investors will be shafted and the public will be left in the dark because of the lack of disclosures, the absence of fiduciary obligations, and the deficiency of investor safeguards. All these would apply under federal securities law; but none of these exist under laws governing futures contracts.
In other words, the CLARITY Act would give crypto even more cover. It would make crypto even more opaque. It would allow even more tax evasion, more money laundering, more fraud, more speculation, more ripoffs, and more crime....
It’s well worth your time to phone your senators and representative and tell them NO to the “Clarity Act.” The congressional switchboard is (202) 224-3121. You can call this number to be directly connected to the office of your specific senators or representative. The vote is next week. Please phone now.
- more at link -
All worthwhile improvements, but they don’t cure the bill’s fundamental defects. Let me get right to the point. Congress should not enact legislation that further legitimizes and expands an industry whose promised public benefits are zilch while its costs and risks are increasing by the day.
There’s simply no legitimate use for crypto. Its only practical uses are tax evasion, money laundering, fraud, speculation, and crime.
...snip... The CLARITY Act would narrow the authority of the Securities and Exchange Commission over digital assets and give authority over crypto to the Commodity Futures Trading Commission.
This means investors will be shafted and the public will be left in the dark because of the lack of disclosures, the absence of fiduciary obligations, and the deficiency of investor safeguards. All these would apply under federal securities law; but none of these exist under laws governing futures contracts.
In other words, the CLARITY Act would give crypto even more cover. It would make crypto even more opaque. It would allow even more tax evasion, more money laundering, more fraud, more speculation, more ripoffs, and more crime....
It’s well worth your time to phone your senators and representative and tell them NO to the “Clarity Act.” The congressional switchboard is (202) 224-3121. You can call this number to be directly connected to the office of your specific senators or representative. The vote is next week. Please phone now.
Well said, Robert Reich! Crypto-currency is not backed by Uncle Sam or any other government.
Using it is a foolish risk, of course. But if enough people trade REAL US dollars for FAKE crypto money, it could destroy our monetary system. The US Treasury would not be there to save us.
Please read the rest on Robert Reich's substack. (OP link)