Copy of Merkle Video Series Cover image – Gabriel Ryan (1920 × 1080 px) (3)

Busting Myths #4 – “Regulation Will Kill Crypto”

by | Jun 10, 2022

In the fourth instalment of our Busting Myths series; Gabriel Carey of Cadre Capital Partners and Ryan McMillin of Merkle Tree Capital discuss and debunk the myth that regulation will the crypto market.


Gabriel Carey:
Ryan, while some people are interested, many are concerned of the regulation of the crypto industry. We’re seeing the US government doing an inquiry into crypto. Right across the globe, more people using crypto. But as we know, as soon as you get regulations involved, that does have a bearing. What’s your view as to whether this is good or bad for the industry?. And moving onto Bitcoin specifically, it’s just another bubble, like the tulip industry. That’s what many people out there are thinking.

So, like any good bubble, it’s worth jumping on the wagon for a certain period of time, but when the bubble bursts you don’t want to be on board. What’s your view on whether Bitcoin is in a crypto bubble?

Ryan McMillin:

Yeah, great question. We as an industry really welcome regulation. There’s this assumption that regulation will be detrimental to crypto. A few years ago, there was pessimistic commentary around crypto regulation, that if it gets too big, it’ll be banned, but the reality today is quite different.

India was almost certainly going to ban crypto not that long ago, instead legalized it and taxed it. Biden’s recent executive order encourages US regulators to ensure the responsible development of digital assets. Here in Australia Senator Bragg has laid down a regulatory framework to support the crypto industry and protect consumers from malicious operators. Governments around the world are taking an increasingly sanguine view of crypto, recognizing the benefits of fostering a local, vibrant industry via outweigh the risks. Of course, consumer protection will be central to any regulation. It’s really important that we get that minority of bad actors out of the space. In my view, fair and balanced regulation will add by pressure to the market, as institutional investors can now invest with certainty, and innovation will speed up as more capital is allocated to the industry.