John Reed Stark, former Chief of Internet Enforcement of SEC, explained it best on 60 minutes:
Crypto is a scourge, it is not something you want in your society. It has no utility. It is pure speculation. There is no balance sheet to crypto, there is no financial statements. There is no audit inspection, examination, net capital requirements, no licensure of individuals involved, and there is no transparency into it. That creates real systemic risks, not just risks for investors.
But the other part people don't talk about enough is the dire externalities that are enabled by crypto. Every single crime you can think of, is easier to do now because of crypto. Especially ransomware, human sex trafficking, sanctions evasion, money laundering. North Korea is financing their nuclear program using crypto.
Crypto companies accounted for almost half of corporate donations in the 2024 election cycle, with some contributing tens of millions of dollars to help Trump win a second term in office. Trump previously called Bitcoin 'a scam against the dollar', but after crypto industry plowed tens of millions into the election, Trump is now for it.
Not true. Crypto has utility, albeit niche. What I ideally want to see is crypto used for small purchases and donations. This is area where traditional money failed miserably.
>the dire externalities that are enabled by crypto. Every single crime you can think of, is easier to do now because of crypto.
replace crypto with railroad in the 19th century. Or even just Internet in the 90-ies. Or AI in 20 years.
Those technologies offered actual utility, that's the difference.
Money also offers utility. Money that you can't transfer because the government thinks you're a drug mule does not. Crypto allows you to transfer money, even if the government thinks you're a drug mule.