Former US Treasury Secretary Stated on Crypto Regulations

Former U.S. Treasury Secretary and World Bank Chief Economist Larry Summers believes that cryptocurrency would do better if properly regulated, rather than seen as a libertarian haven.

Strong Regulation Will Benefit Crypto, According to Summers

Lawrence Summers, who served as Secretary of the Treasury in the Clinton administration and director of the White House National Economic Council in the Obama administration, talked about crypto regulation in an interview with Bloomberg Friday. A former chief economist at the World Bank, Summers is currently the Honorary President of Harvard University.

Asked why regulators around the world are “deeply skeptical” about cryptocurrencies, such as when China is ending crypto-related activities, Summer said; He began by stating that the word “crypto” expresses the “desire for secrecy regarding large financial sums”;“When large sums of money are secretly exchanged; There is a risk of money laundering, the risk of supporting various criminal activities, and the risk of exploiting innocent people.” He commented and continued:

“The truth is, if we didn’t regulate airline safety, we wouldn’t have a viable aircraft industry. If we didn’t regulate automobile safety, we wouldn’t have the transportation system we have now.”

The former IMF chief economist stated that the blockchain-based payments industry would perform better if properly regulated, rather than trying to be a kind of libertarian haven; He states that the crypto community should also acknowledge this and work collaboratively with governments.

According to Summers, who thinks that this innovation will be one of the most important innovations of this period, the realization of such regulations; It means an acknowledgment that industries have become so important that they need to be regulated:

“They need to have a regulatory framework. They need this not only to protect their consumers, but also to protect themselves.”

Lastly, Summers, who also advocated the SEC and the necessity of the regulatory framework; “Although people sometimes dislike the rules, the New York Stock Exchange wouldn’t be the center of the world stock market if we didn’t have a strong SEC,” he commented.

source site