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We speak with Astra Protocol Advisor and former acting White House Chief of Staff Mick Mulvaney about how a regulatory framework for cryptocurrency and digital assets can help solve industry challenges. Mulvaney also talks about the competing priorities on crypto regulation in the U.S., and what investors may want to understand about the current state of the crypto and digital asset markets.
What are some of the biggest challenges facing crypto and digital assets today?
One word: credibility. I think the industry is doing an acceptable job in pushing back against the impression that blockchain (mostly crypto) is somehow part of the dark web, with ties to all sorts of nefarious bad actors. But it faces a different challenge: proving that it is a reliable industry. From Mt. Gox years ago to FTX to Silvergate today, the impression is that the entire world of crypto (and by implication, blockchain) is unstable. The crypto/blockchain world needs to prove it is a maturing industry, and not just some flash-in-the-pan that is mostly designed to fleece unwitting retail investors.
How will a regulatory framework help solve these challenges?
Clarity is critical. If the players in this space could be comfortable that they know the rules of the road, it would encourage investment and innovation. Indeed, the industry has literally been begging for some regulation for almost a decade now, for precisely that reason. While overly burdensome and restrictive regulations would be a problem, anything reasonable would be a move in the right direction.
How is the U.S. doing in the global race on digital currency?
Miserably.
What are some of the competing priorities on crypto regulation in the U.S.?
The competing priorities are typical for most emerging technologies: consumer protection, market integrity and transparency on one side; innovation, investment and growth on the other. That is not unique to the space.
How are you assessing the current state of the crypto and digital asset markets? What should investors keep in mind?
I expect there to be a bipartisan piece of legislation passed during this term of Congress (roughly the next 20 months). I expect that it will be slightly more restrictive than the industry would want, mostly because of the impact of high-profile problems such as FTX and Silvergate. That said, the restrictions will not go as far as many crypto critics would want, and certainly will not go so far as to effectively ban the industry (as some lawmakers have said they would prefer). Ultimately I think this will be beneficial for the industry, and will be part of the natural evolution of this technology from fringe/cutting edge/“Wild Wild West” to something more established and mature. Put another way, the industry will become more mainstream. And it is the business that will enable that transition – and this is where Astra comes to mind – will be integral parts of that.
I truly do believe that a decade from now, average people all over the world will be using blockchain without realizing it. The companies that enable that will be the next FANG-type businesses.
This interview originally appeared in our TradeTalks newsletter. Sign up here to access exclusive market analysis by a new industry expert each week. We also spotlight must-see TradeTalks videos from the past week.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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