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ReadersSpeak

Is it time to regulate crypto?

onica Eaton, founder of Chargebacks911,
a provider of chargeback prevention and
remediation technology, reached out to
M discuss recent developments in the crypto
sphere and the pressing need to regulate digital cur-
rencies.
As reported by Investor's Business Daily (https://bit.
ly/3Zxr9N4), cryptocurrency markets tumbled Fri., Feb
10, 2023, and Bitcoin's price dropped to a three-week
lows, plummeting to $21,650 overnight from it's Thurs.,
Feb. 9 high above $22,700, Eaton noted.

Following the spectacular collapse of FTX (see https://
bit.ly/3y7oNsu), the value of its token FTT, which was the
fourth-largest crypto exchange by volume as of Nov.
9, 2022, plummeted, taking other coins down with it
including Bitcoin and Ethereum, she stated, adding that
according to the Federal Trade Commission, more than
46,000 consumers reported losing more than $1 billion
in crypto to scams between Jan. 1, 2021, and March 31,
2022 (see https://bit.ly/3IJRv7N).

"It seems likely that the FTX bankruptcy, and the
alleged crimes associated with the exchange, will
give government regulators a reason to tighten the
rules around crypto companies," Eaton said. She
further pointed out that in a Feb. 14, 2023 Senate
Banking Committee hearing, (https://bit.ly/3mkZi4k),
testimonies from financial and law experts indicated
the necessity for a Self-Regulatory Organization, while
discussing the need for the Securities and Exchange
Commission to collaborate with the Commodity
Futures Trading Commission to regulate digital assets.
There were also arguments on the implementation of
innovation for consumer protection, she added.

"According to consumer advice given by the Federal
Exchange Commission, cryptocurrency payments are
non-reversible," Eaton said. "There's no centralized
party or authority, meaning once you pay with crypto,
you can only get your money back if the merchant
chooses to send it back. Security and stability must
be achieved before the general public and financial
institutions begin to see crypto payments as a preferred
medium of exchange."
Tightening the rules

What do you think is the best way to make crypto
payments stable and safe enough for business and
consumer transactions? Share your views on this at
greensheet@greensheet.com.

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