As Regulatory Scrutiny Increases, Crypto Innovation Becomes Even more Important
Two weeks ago, Terra’s UST and Luna currencies fell apart in a matter of minutes. This shook up the crypto space. The falling price of one of the most popular cryptocurrencies added to the public’s worry, which was already in the red because of the red market. In the days that followed, lawsuits were brought against the project’s co-founders, public outrage grew, and lawmakers around the world stepped up their efforts to regulate the situation.
Since Bitcoin came out in 2009, the idea of regulating crypto has been a good one, but it wasn’t until March that the Biden administration told regulators to work together. In a similar way, lawmakers knew that cryptocurrency existed and that it was important to the world economy, but they didn’t make any laws about it. Sen. Cory Booker said this when he was on CNBC:
“There needs to be a set of rules for this game that make it more predictable, clear, and safe for consumers. We don’t want to stifle a new industry or new ways of doing things so that we miss out on opportunities. “
Even though many crypto fans have come to see regulation as a bad thing, most experts agree that a regulatory framework would be good. But, as Sen. Booker said, it’s hard for lawmakers and regulators to make sure that laws are followed without stopping innovation.
The United States has a long history of being innovative and forward-thinking when it comes to technology. This makes it even more surprising that the country has been slow to respond to the crypto revolution. Over the past few years, investment firms like Andreessen Horowitz and Sequoia Capital have been putting more money into crypto. In fact, Andreessen Horowitz just announced that it is raising a $4.5 billion crypto fund.
Other governments are also taking steps to regulate cryptocurrency. In April, the UK said it planned to “lead the way” when it comes to crypto. This isn’t surprising when you think about how local tech investors like L Marks have been investing in crypto and blockchain startups for a while and helping to launch innovation programs all over the world.
Since its founding in 2014, L Marks, which was the idea of entrepreneur Stuart Marks and innovation expert Daniel Saunders, has been making programs that are meant to drive innovation. These have been held in over 80 countries, such as the UK, Japan, Israel, and the US. Each year, they help more than 10,000 new businesses get started.
Since L Marks has set up the most corporate innovation labs in the UK, he has the skills to help crypto and blockchain startups find their way in an industry without many rules. This is very important because being able to change to meet new rules could mean the difference between life and death for startups and young companies.
Daniel Saunders, the CEO of L Marks and an expert in innovation, says this about the company’s mission: “We made a new way to use startup innovation to meet the needs and challenges of a changing business landscape.”
But since crypto is mostly used by startups and individual investors, innovation programs within a company can be very helpful for R&D and also make a lot of money. Some of the traditional organizations that work with L Mark are BMW, British Airways, Lloyd’s of London, and American Electric Powerjus.
As a result of the crash of the cryptocurrency market and other bad things, like the crash of Tera, regulatory efforts are being stepped up. This means that innovation will be the key to keeping the crypto space alive. A big plus is that lawmakers seem to know how important it is to keep crypto evolving — but they might want to hear what the most knowledgeable people have to say.