I am skeptical of regulators ability to prevent fraud. The key word there is “prevent”. They are pretty good at catching those who egregiously break the rules. But it is rare that a regulator can create and enforce regulations that prevent bad actors from committing a criminal act. For a while I have recognized that the move to digital assets is a chance for regulators to get ahead of the adoption curve since digital assets are programmable money. But it is just not in the nature of regulators here in the US to be forward thinking. The Department of Justice’s report on “Cryptocurrency Enforcement Framework” is an example of that. The report is full of information explaining terms challenges, but no where do I find much that is forward looking. They are dealing with today rather than the future.
China on the other hand is already market-testing their own “digital yuan” by giving 3,400 merchants the infrastructure to accept digital yuan, and now China’s Central Bank (People’s Bank of China) has airdropped a few hundred digital yuan to tens of thousands of citizens in a live market analysis.
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