The newly appointed CEO of Grayscale Investments, Michael Sonnenshein, convinced of the ignorance of regulators for cryptocurrencies, donated $ 1 million to CoinCenter, a nonprofit that educates policymakers about how this ecosystem works.
Grayscale is donating $ 1 million to training regulators
It will not escape anyone that politicians speak (almost) with one voice when it comes to talking about Bitcoin, demonizing it and systematically associating it with money laundering and terrorist financing. The entire history of the first cryptocurrency is riddled with institutional head starters of this type, and the most pathetic thing is that twelve years after its appearance, and despite all the quantitative studies that prove exactly the opposite, both continue to utter the same nonsense. We think of our inevitable Secretary of the Economy and Finance, the President of the European Central Bank, or the new US Treasury Secretary when we are content to refer to the last few sequences of an official speech conveying these false claims.
In the face of a finding that is both worrying and stressful, the crypto industry is concerned about upcoming regulations. If the legal framework is built by officials who do not understand it, it could affect and hinder the growth of the sector. It is also about thwarting the perilous slope that looms large in laws enacted in complete ignorance by training the authorities with innovative paradigms in the complexity of this universe. In the words of Michael Sonnenshein in his Bloomberg interview, education is « the big missing link in crypto ».
Believing the topic mattered, one of his first roles as CEO was to donate $ 1 million to CoinCenter. A leading organization focused on legal and regulatory issues faced by cryptocurrencies. In particular, it helps regulators gain an enlightened knowledge of the subject by assisting them with specific recommendations related to the regulatory approach.
Kraken, the pioneer donor
The Kraken Exchange, one of the oldest players in the industry, led the way in 2018 with a corresponding donation. Openly in his line, the Grayscale CEO invites other prominent figures in the field to contribute. He asked the CEO of Binance, Changpeng Zhao (CZ), the Winklevoss brothers from Gemini, Michael Saylor from MicroStrategy, Brian Armstrong from Coinbase, Jeremy Allaire from Circle or even Jack Dorsey from Square. The main argument is that CoinCenter was instrumental in stopping the Financial Crimes Enforcement Network (FinCEN) project regarding self-hosted wallets.
Most recently, the Coin Center played a key role in correcting issues with FinCEN’s proposed rule-making that would have had serious negative consequences for self-hosted wallet users and the entire digital currency industry.
For the CEO of CoinCenter, this is indeed a shining example of the usefulness of their organization.
We want to ensure that there is a voice in Washington for open and unlicensed cryptocurrency networks, which are public goods from which everyone benefits. The funds we raise are critical to helping our team do everything they can to ensure that the ecosystem continues to mature and grow. « »
Increased regulation that needs expert light
We know that the current context is a strengthening of the regulation of cryptocurrencies. We also know that the regulator’s routine of beating up Bitcoin isn’t just ignorance or laziness. It is, of course, also a deliberate intention: to suppress the irresistible advance in money creation that is eluding states. Even if institutional thinking has advanced and proponents of the world order are now convinced of the merits of digital currencies, we can always expect the worst.
Because if you no longer deprive yourself of the list of advantages: simplification of the payment infrastructure, cost reduction, financial integration … your world should sleep better. Each country is developing a model of the national currency 2.0 at its own pace. In other words, a digital packaging for a centralized and regulated currency, hereinafter referred to as CBDC (Central Bank Digital Currency), which will experience more or less the same deviations as the traditional banking system.
Bitcoin therefore remains the nuisance of regulators, and its growing capitalization can only worry them more. Just like the institutional passion it evokes. Only after leaving positions of power can they recognize their unique characteristics (scarcity and decentralization), based on the recent interventions of two former ministers.