WASHINGTON, D.C.—Benjamin Schiffrin, Director of Securities Policy for Better Markets, issued the following statement in connection with Better Markets’ new Fact Sheet, “We Must Regulate Crypto As It Exists Today”:
“Tomorrow marks the 17th anniversary of Satoshi Nakamoto’s white paper introducing the world to Bitcoin. Since the white paper’s release, proponents have touted cryptocurrencies as the future of money. Yet crypto today bears almost no resemblance to Nakamoto’s vision.
“Nakamoto wanted a way for people to make payments without going through a financial institution. Although it is possible for Bitcoin to be used in this manner, this is not how Bitcoin is primarily used today, except for its use by criminals. Instead, Bitcoin’s main legitimate use is as a speculative investment. Other cryptocurrencies are almost exclusively used as a speculative investment. Perhaps most revealing, financial institutions pervade the crypto ecosystem. Crypto, in today’s world, is not a revolutionary form of payment but just another volatile asset that is part of the traditional financial system.
- Almost nobody uses crypto as a method of payment. A recent Fed survey found that only two percent of adults used crypto to buy something or make a payment in 2024.
- Outside of criminal activity, crypto appears to be used almost purely for speculation.
- Crypto is now intertwined with traditional financial institutions, as exemplified by the recent “strategic partnership” between JPMorganChase and Coinbase.
“Regardless of how Nakamoto envisioned Bitcoin, we must regulate crypto as it exists today—as an investment that should be subject to the same rules as other financial assets.”
The fact sheet is available online 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.
