Billionaire Bill Ackman has warned that the crypto industry needs to self-police or risk being shut down. He added that regulators need more resources to police the bad actors in the crypto space and it will likely take years to catch up.
Bill Ackman on crypto regulation and the need for industry to self-police
Billionaire Bill Ackman shared his thoughts on a variety of crypto-related topics, including crypto regulation, in a series of tweets on Saturday.
Ackman is the CEO and portfolio manager of Pershing Square Capital Management, a registered investment adviser with the US Securities and Exchange Commission (SEC). His current net worth is around $3.5 billion.
Regarding regulation of cryptocurrencies, he said: “I’m not sure we need new rules. A lot of the fraud going on is old-fashioned pump-and-dump schemes, and failures of custodians to protect client assets.”
The executive continued: “I suspect that existing anti-fraud and other laws already govern these offences. We just need more enforcement.” Ackman said:
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. So the crypto industry needs to self-police and evict the bad actors or risk being shut down.
The collapse of FTX, a major cryptocurrency exchange, earlier this month had many calling for stricter crypto regulation.
Some people have emphasized that the FTX crash is not a crypto failure, including Mark Cuban and Robert Kiyosaki. US Congressman Tom Emmer believes this is a failure of the SEC, chairman Gary Gensler, FTX co-founder Sam Bankman-Fried, and centralized finance.
Ackman went on to describe, “Crypto remains the Wild West as the same protections of registered security offerings do not exist,” and elaborated:
Therefore, the character, reputation and track record of the management teams and sponsors of crypto-based businesses are extremely critical in choosing which projects to support.
Last week, the billionaire said: “Crypto is here to stay and with proper oversight and regulation, it has the potential to greatly benefit society and grow the global economy.” He added: “Therefore, all legitimate participants in the crypto-ecosystem should be highly incentivized to expose and eliminate fraudulent actors, as they greatly increase the risk of regulatory intervention that will diminish the positive potential impact of crypto for generations.” put back.”
What do you think of the comments made by billionaire Bill Ackman? Let us know in the comments section below.
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