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How Should the Government Regulate Crypto, Blockchain?

Since the industry is still evolving, it’s hard for anyone to grasp where to set rules.

As the government scrambles trying to create new regulation for crypto and blockchain, many experts and key players in the industry are left wondering: why?

How is the government expected to know how to regulate a rapidly-growing industry that they know nothing about? These are the sentiments expressed by entrepreneurs John Lee Dumas and Yaron Brook.

Brook begged the question, how is anyone supposed to believe that the government knows the proper guidance for blockchain or crypto when they’re not experts in the field? The people who actually know the industry, Brook said, are the ones “living it” every day.

“The market will take care of these things, right? The market will figure out who are the good guys and who are the bad guys?” Brook said. “The last thing in the world is you want a bunch of central planners who have sophisticated models who think they're smarter than anybody else and who are not. But even if they were, figuring out who are the good guys and who are the bad guys, they're not gonna get it right.”

Brook said the beauty of blockchain and crypto is that it’s unregulated, allowing wealth creation and entrepreneurs to try new things. Entrepreneurs don’t want to be regulated or put in a “SCC box,” Brook said, adding they want to dream and create ideas that solve real problems.

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Brook cited an example of how Steve Jobs created the iPhone. Before that, no one ever thought twice about having a smartphone, but now, most people rely on their iPhones every single day.

“That's the beauty of entrepreneurs. They create a world that most of us can't imagine exist. I know very little about blockchain and crypto, but I'm excited about living in a world in which these companies are successful and I will learn how to use their products, and they will solve problems that I don't even know I have today,” Brook said.

Dumas agreed with that sentiment but argued that Henry Ford creating the automobile is a better example of an entrepreneur creating a product people couldn’t fathom.

Watch the full panel: