The way to clean up the crypto space is not necessarily more rules, but instead better enforcement of existing rules, believes the American billionaire hedge fund manager Bill Ackman. But even then, the job will likely take regulators years, he said.
The legendary investor’s views on crypto regulation was shared in a lengthy Twitter thread over the weekend, where Ackman also made it clear that regulators may actually never be able to fully catch up with what goes on in crypto.
“Regulators need more resources to police the bad actors. Unfortunately, it will likely take years for the regulators to catch up, and they may never get there,” Ackman, who founded and still heads the hedge fund Pershing Square, wrote in one of his tweets.
He added that because of this, self-regulation and self-policing within the crypto industry will be necessary to avoid a total regulatory crackdown.
According to Ackman, most of the fraud that is currently taking place in the crypto industry – such as pump and dumps – are in fact covered by current regulations. As such, what is needed is not more regulation, but just more enforcement.
“With respect to regulation, I am not sure we need new rules. Much of the fraud that is taking place is old-fashioned pump and dump schemes, and failures of custodians to protect customer assets,” Ackman said, while adding:
“I suspect that existing anti-fraud and other laws already govern these violations.”
Describing the current state of the crypto industry, Ackman pointed out that crypto “remains the Wild West,” much due to a lack of investor protection. As a result, “the character, reputation and track record of the management teams and sponsors of crypto-based businesses are extremely critical in choosing whichRead more on cryptonews.com