WASHINGTON, D.C.—Amanda Fischer, Policy Director & COO for Better Markets, issued the following statement in connection with Better Markets’ new fact sheet, “We’ve Seen This Movie Before,” which explains how the current regulatory approach to crypto mirrors the conditions that led to the 2008 financial crisis.     

“Summer may be over, but we’re still in sequel season when it comes to crypto. Americans are in desperate need of a new regulatory script—one that won’t embrace the same type of light-touch regulation that led to the entirely-preventable 2008 Crash. Federal and state agencies have the tools in place to stop emerging financial activities from harming the wider economy. It’s time to stand up against crypto lobbyists and their allies in Congress as they attempt to leave sensible rules on the cutting room floor.” 

As described in the fact sheet, “The [industry’s strategy for skirting regulation] is simple: ambitious firms adopt an approach akin to the Thomas Crowne Affair – executing a heist and endeavoring to woo the watchdogs into becoming accomplices. In the crypto version, firms develop non-compliant or questionably-compliant business models that they hope establish enough incumbency, profitability and political power that Congress and regulators are coerced to rewrite existing laws to retroactively bless them…Unfortunately, despite the sweet talk, this movie doesn’t have a happy ending. Regulators, Congress and the public need to learn how to foil this plot, fast, or else families are going to learn How to Lose Their Retirement Savings in 10 Days.” 

The Fact Sheet is available here. 

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.