Finance has hailed the arrival of DeRe – Decentralized Regulation – where regulatory bodies can make up the rules exactly as they please.
The benefits of this new system became immediately apparent when the Commodity Futures Trading Commission (CTFC) decided in March that Ether was a commodity and sued Binance for trading it, at the same time that the Securities and Exchange Commission decided that Ether was a security and announced it would investigate Coinbase for trading it… thus doubling regulatory business overnight.
Planet Crypto’s law correspondent, Grant Bale, explained the growing excitement around DeRe.
“The great thing about Decentralized Regulation is that it empowers individual agencies to make up the rules without third party interference. It’s effectively peer-to-peer regulating which circumvents all the bother of having to let a court decide what’s legal. Now any agency can decide that for themselves and it’s no-one’s business what anyone else thinks. Compared to TradRe – Traditional Regulation – it’s faster and much more transparent. Whether that’s transparently anti-crypto in the case of Gary Gensler and the SEC, or transparently to annoy Gary Gensler in the case of the CTFC.”
The innovation offered by DeRe has already started to expand beyond finance into other areas of life, with the news that jaywalking will now be classed as illegal by the LAPD but only “a bit of a risk” by the California Gambling Control Commission. Meanwhile, polygamy will be classed as illegal in all 50 states but classed as “your funeral, dude” by the Institute of Marriage Guidance Counsellors.