The new emerging economic model is trust-less, borderless and transparent - yet the old systems want to remain in complete control.

I previously wrote about the NEED for restructuring called ‘Reformatting the Financial Structure through Blockchain’

In this article I’ll write of the higher risk of regulatory failure than success (particularly in North America other areas can benefit). I’ll list some concerns and my reasons why. But first I want to thank everyone for their views and likes.

As before this is not financial advice only a personal perspective.

Reason 1: The panel consists of primarily white and white male individuals.

• The world is represented by people of many different backgrounds. Blockchain/cryptocurrencies is representation of everyone’s currency. A regulatory solution from of small pool of the population is inherently biased.

Reason 2: Most of the panelist have affluent net worth.

• People with wealth are often the last ones with any insight on the risk or opportunities (or lack thereof) that affect the working class or working poor. Their perspectives are too narrow, or too far removed from actual realities.

Reason 3: A vast majority have no understanding of blockchain/cryptocurrencies. Some have no interest but rather spread fear (it about scams, it’s all fraud, no value etc).

• How can someone create policy if their minds are closed?

Reason 4: Due to little or no transparency many regulatory rules support self-interest projects and nepotism.

• You don’t need to search far or long for information about a governmental official(s) using their position to benefit themselves, family/friends, or a company.

Reason 5: The panel is a small pool of individuals left to design compliance for the majority.

• Think of this problem mathematically. If it was financial equation, we would flag it as an imbalance. This is no different. If Cryptocurrency rulings are meant to ‘protect’ the masses this should be a concern.

Reason 6: The kicker, this current process seems to be SEC vs Cryptocurrency instead of SEC’s research to re-invent with cryptocurrency.

Before I continue, let me be clear. The Blockchain and Cryptocurrency space needs to be cleaned up. No doubt. However, the method in which this happens shouldn’t come at cost to the individual and without the sense of ‘reasonability’. Society has been down the road of broken financial model for far too long on too many occasions. History is your evidence and guide to do your own research and see. Strong arm tactics will result in history repeating itself and as a society we would have gained nothing.

The current financial structure has been existing on thin ice for decades. There has never been a ‘recovery’, only more and more buffers, hedges, fractionalization etc. A recovery in my opinion, is when the larger population of a given region has 70% positive value (call it net-worth if it’s easier) that’s not tied to debt. The reality is it’s the other way around. We rinse and repeat the same ole same ole like a broken record. Just changing the players/controllers ever so often.

When the internet was introduced call it web 1.0, it was mind blogging. It WAS revolutionary. Because for the first time the masses, had choices (that were borderless), controls, opportunities, community outside predefined construct created by financial institutions, corporations, governments. And yes, there were many risks, scams you name it. But it didn’t stop the concept from existing - until. As the internet was just breaking through, since it wasn’t everywhere, the slow roll out allowed legislation, government ‘intervention’ to be introduced essentially diluting the progress. Choices, freedoms, opportunities have been stripped away and more manipulation, border control, backdoor surveillance, and data tracking (ie. Facebook) became the replacement for web 2.0. In the name of ‘protection’. Every time I read or hear that statement, it raises a red flag, because 9/10 it’s about protection for the few.

Then enters the nascence of web 3.0 (blockchain), the start in continuing where web 1.0 left off. To remodel, not only the reconnection of communities of similar interest, create new economic models of opportunities without bias but of course, the biggest chance to correct the current financial structure. In fact, as I mentioned it should be about reformatting it. Believe or not Henry Ford thought of the idea of society less reliant on banks years ago!! How we keep missing these opportunities is beyond me, the only reasons -self-interest & control.

Henry Ford - Energy Currency 

To correct and advance the SEC needs;

• to have a more diversified and broaden panel to be more reflective of the society they represent.
• needs to be more transparent, forthcoming on how they establish regulations and compliance protocols.
• the Federal government needs to apply oversight to assure SECs do not overstep as well as be just as transparent. A body needs to keep a watchful eye on the SEC.
• to be adaptive and flexible with any policies regarding cryptocurrencies.
• review and update policies to make it illegal to participate if there’s suggestion of lobbyist platforms or self-interest groups aiming to steer outcomes of a decision.
• support new investment opportunities by providing guidelines on what to watch out for instead of an outright ban – the new emerging economic model is borderless. The SEC should not be end all be all. They should be there to guide the NEW model.
• Create establish tiers if needed ex: areas of that require less restrictions to areas that may require more regulation.
• not attempt to ‘track’ everything – freedoms must be retained.

And ultimately the development of global regulatory guidelines. Because blockchain is global (24/7 365 days), peer to peer, and transparent.

For Developers (DeFi/GamFi-etc) build accordingly.

• Clean up your act.
• Prepare to be vetted. Even though blockchain is trust-less, humans are the ones creating the code and we are flawed with the ability to intentionally or unintentionally code with bias.
• Prepare to be analyzed.
• Prepare to validate your platform.

I know many would say what I listed is already in place. I would say not enough. This is a new precedent, and not one to be reversed, because the change has already happened. The population is using cryptocurrencies and it’s continuing to move forward. The access to new markets need to remain open to everyone. Access to economic opportunities once reserved to a select few are now available to the many – proceeding closer to a level of equalization.

Scary and for most unnerving, especially if you benefited from the current broken financial model. However, nonetheless the time is now to be progressive rather than degressive.

Put in another perspective success requires the ability to keenly recognize design flaws in any system. Often a person/ or a group taking on such an endeavour is known as pioneer. A recent Netflix movie I just watched called ‘On the Basis of Sex’ about Ruth Bader Ginsberg illustrates this remarkable women’s determination to change archaic policies ingrained into society as a ‘norm’. Regardless of your viewpoint of RBG, change the context and you will immediately see the similarities. Blockchain and Cryptocurrencies have two pioneers (Caitlin Long and Andreas Antonopoulos). Agree or disagree they have moved the sector forward, but they can’t do it alone.

In closing, there is a line from ‘On the Basis of Sex’ – ‘…protecting the rich against the predations of the poor’. If a system has been designed to maintain levels of poverty, while at the same time create obstacles that make it harder to break away from its shackles, it’s a system worth tearing down.

I have witnessed firsthand (myself included) how beneficial blockchain cryptocurrencies have become for the average person. This is excluding the sensational reports of outlandish gains and sales that the media and the public gravitate towards. I am speaking about the global working class, students, parents etc. The ability to simply pay bills, buy household items like a fridge, pay down debt or pay it off. I lived long enough to tell you this was never achievable before. AND it unequivocally wouldn’t have been achievable without blockchain or cryptocurrencies.

How many would return to using a landline phone as the only method of communication, data transfer, business interaction? None, it would be problematic, costly, and very cumbersome. But that’s what’s at risk with upcoming regulations. Take another example, educators battling to teach new students on coding, by discussing organization, file structure. It’s an innocent, yet astute article about change and adaption. Many do not remember or even have experienced the early days of code with directories, folders, subfolders (filing cabinets etc). This simple filing structure concept has changed. We ALL need to adapt.