“Like the World of Warcraft, crypto, in my view, does nothing to support the real economy, so legitimizing it is simply going to drain creative resources from productive activities,” economist Stephen Cecchetti said.
While the collapse of cryptocurrency exchange FTX has spurred many U.S. lawmakers to call for new regulations on the crypto industry, one economist offered a different take on Tuesday.
“I think of a lot of this stuff as being like a video game, and so if I look at an analog, the World of Warcraft has 120 million players, and it has an economy inside of it. Fortunately, no federal financial regulator has responsibility for overseeing the World of Warcraft. And while there’s money involved, I don’t think any of us would call on them to supervise online massive multiplayer games.
Third, the Brandeis professor argued that “new light-touch rules for the crypto world would fuel the migration of financial activity from traditional finance to the less regulated but newly legitimized crypto world.” Finally, Cecchetti expressed worries about banks KBE, +0.50% diving into virtual currencies BTCUSD, -0.41%.
Peter Conti-Brown, a financial historian, legal expert and professor at the University of Pennsylvania’s Wharton School, opposed Cecchetti in Tuesday’s debate, arguing that federal regulators have a lot more work to do with crypto.
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