Note: our purpose is not to endorse or oppose any political candidate or affiliation. We simply wrote this story to inform and inspire readers to take action, regardless of their political views.
President Joe Biden just announced a new executive order to regulate cryptocurrencies, citing concerns over the war between Ukraine and Russia.
The order, which Biden is expected to sign this week, would “mark the first step toward regulating how digital currency is traded.”
A Threat to the Success of Web3
Web3 technologies largely have their decentralized structure to thank for their successes. Actually, a lack of government regulations is largely to thank for the success of the Internet and web-based technologies. Cryptocurrencies are also highly successful largely because of the ease and security of trading and transferring them.
So, it’s concerning when we hear that the federal government wants to control this – regardless of which side supports it. Both sides have tried to pass unnecessary regulations on emerging technologies in the past, and it’s always been up to the people to stop them.
Why stop them? Because those regulations often cause more harm than good. I won’t list examples for the sake of remaining politically impartial. Suffice it to say that they’re pretty easy to find.
It’s worth noting that the order “had been in the works long before the war.” The federal government has been vying for an excuse to regulate Web 3 for some time. And those proposals have come from both sides.
This isn’t just about nit-picky regulations on specific transactions. The EO introduces “the possibility of a new central bank digital currency.” This completely undermines the decentralized structure that has made blockchain technologies so successful.
Additionally, transactions in most virtual worlds occur smoothly over the blockchain in real time. How might this be forced to change if new (and, frankly, unnecessary) regulations control cryptocurrency transactions? Time will tell, but it’s unlikely to result in a positive change.
More Regulations can Reduce Accessibility
Virtually anyone can create their own piece of the metaverse. This includes cryptocurrencies, virtual worlds, and mixed-reality experiences.
Regulations often prove costly. They also require a thorough understanding of legal jargon. Many of the designers, developers, and performers finding success in the metaverse lack the resources for compliance. So, only those with the money and legal teams needed to comply will have a chance to succeed.
Now is the Time to Hinder Web3 Regulations
Staying informed and in touch is our best chance at beating unnecessary Web3 regulations. We can all take a few minutes to contact our senators and representatives. Doing this in the metaverse’s early days will help set a precedent against future regulations.