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jeekiii t1_j8wkg5w wrote

I wish regulator acted a bit before stuff like this happens.

As an example: everyone knows Tether does not have the reserve for their pretend 1-1 peg with usd yet no one is doing anything, just waiting for when tens of billions will be wiped off the markets.

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Gravelroad__ t1_j8wv3gi wrote

The regulatory environment is still a little tricky. I was involved in a very early fraud case - contractor for a coin that lied about having the required broker-dealer license - and the SEC folks asked as many questions about functionality as they did the fraud aspect. Hard to have experts in these fields in general, especially given the speed of dev and how much more lucrative private sectors are

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TenderfootGungi t1_j8x5i5z wrote

How would you regulate this and still allow innovation to happen? People voluntarily put their money at risk. I believe they are taking a wait to see what happens before deciding what regulation is appropriate.

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jeekiii t1_j8y9phf wrote

You can do it a posteriori, but like it's time to actually enforce "we are backed by real dollards" as something either true (by actually investigating) or make sure no one is making crazy claims like that.

Like you know when SBF says he's "just" an exchange but spends crazy amounts of money... mayybe check what's going on?

Maybe, you know, actually enforce all these fancy anti-fraud laws.

The crypto space is filled with rugpulls and people are getting away with these. Yes people who invest in these are dumb but how is it possible that so many scams are happening all the time yet no one in the government is moving.

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TSL4me t1_j91ehp4 wrote

The problem is most financial products are not backed by the hard currency that they claim. Etfs are worse then crypto scams, shares are mostly non existent. If there was a crackdown most 401ks would be wiped out.

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