The Goldman Sachs funded Circle CEO, Jeremy Allaire, says the crypto space needs to get ready because “shit is about to get real.” We quote in full:
“The rise of crypto has brought policy and regulatory issues to the forefront and are going to become massively important very quickly. The departing administration and the incoming Democratic forces are both eager to leave their mark.
The stakes are very high for society and the economy; the far-left wants to paint crypto as an anti-big tech and consumer protection issue, the far-right wants to paint crypto as a national security threat; the libertarians and moderates see the human economic potential.
Big banks want to limit it, tech entrepreneurs and silicon valley want to foster the innovation and disruption it heralds for the world.
Nearly all of these groups don’t have a full understanding of each other, and in that fact lies a huge risk of poorly considered policy and regulatory choices.
Biden promises to govern from the middle, focus on rebuilding infrastructure, strengthening America’s role in the world.
In the next 4 years, it’s THE time for decisive action on embracing public blockchains and crypto as the future of our economy.
The analogies to 1996 are significant — many in congress and existing regulators thought one should get an FCC license to have a website.
Hawks sought to ban free use encryption tech (crypto) as a military tech. Open access to a global network was met with hysterics.
Back then, monopoly media, communications and tech firms (ATT, TimeWarner, Microsoft) opposed the open internet, seeking to protect and build on their centralized platforms.
The advocates of an open internet, open access and free and fair competition, even with massive uncertainty of the scale and use-cases, led to breakthrough legislation – The Telecommunications Act of 1996.
Net Neutrality was born, open protocols, open source software, and the decentralized internet was allowed to grow and flourish in America and globally.
The big monopoly players saw their business models disrupted, and we saw 100x improvements in so many dimensions of how the world works.
Those of us who joined crypto because we believe that it could do for the economic system what the early internet did for information and communications need to be ready, because the shit is about to get real.
There’s a real chance to work with the left-middle and right-middle to forge a path, and make open access and use crypto and blockchain a core part of America’s growth strategy for the next decade.”
It is difficult to group the far left into one view because just recently an influential book called Cryptocommunism made an insightful case why this space is appealing to the far left.
If by the left he is referring to proponents of the Modern Monetary Theory (MMT), that’s a radical departure on the nature of money and a large scale implementation of the most regressive tax of all, that through funding the government through inflation, a tax by and large solely paid by workers for they live paycheck to paycheck and so can’t protect themselves from the movements of money supply.
MMT proponents therefore are a different sort that don’t quite fall within left or right because as it happens one of the richest man on earth is its biggest proponent.
Why would a billionaire back this theory? Because it allows him to continue benefiting from cheap money while also not having to pay the fair share of tax because government spending is funded by money printing which translates to by a total tax on all things including bread and for all people including those starving.
Any congresswoman or man therefore claiming they are far left while supporting this theory betrays either complete ignorance or full corruption because on a principled basis they are excusing Bezo’s ex-wife from paying tax while practically taxing those starving while buying bread.
Where the right that is now departing from power is concerned, their true nature is revealed by the fact banker’s lawyer, Jay Clayton, was appointed to head the Securities and Exchanges Commission.
Donald Trump was bailed out by banks in the 90s with a $1 billion loan, and he returned the favor.
The principled right supports cryptos because they facilitate a free market while the principled left supports cryptos because they facilitate communal governance.
In this space therefore they both find union in the ability to implement their ideas through code without coercion, thus making this space a battleground of implemented ideas and experiment where may the best win.
That makes it a new frontier, a new land, for the principled ones in any event. Where the corrupt are concerned, may they eat cake as they have been eating since 2009, losing since the genesis block.
In addition, Europe would like little more than an America shooting itself in the foot, with their embrace of blockchain tech and their far more reasonable proposed regulatory frameworks being one reason why Europe is rising significantly in soft power.
It is Europe that now inspires many and aspires, with the American civil service revealing itself as sclerotic as Niall Ferguson called it.
So maybe Allaire doesn’t know it, but shit gotten real a long time ago where America is concerned, with that being partially why it is Zug that has a crypto valley and not the United States.
Where Silicon Valley is concerned, however, it would be a mistake to think the monopolistic Facebook coin has anything to do with this space.
That’s a political matter due to its scale and the potential to gain instant adoption, very unlike the style of this crypto space which has gradually moved to upgrade our capabilities on a voluntary and willing basis for any participants.
Therefore conflating the two is to intentionally confuse as how the elected approach Libra is more a matter for Facebook than cryptos provided the elected make the proper differentiation between monopolies issuing custodian stable coins, competitive startups and companies doing so, and the code itself doing so algorithmically.
While where regulating the bitcoin network itself is concerned, including what are called SPV wallets, such arrogance would be too amusing to those that eat bread.
As such, shit is not about to get real in our view. Instead, it has been real for more than a decade and this space has won at every single turn and will continue to do so because it has allies at the highest and most unexpected places.