Let crypto burn
I think a lot of people are responding to just the headline. For me a key part is, as the article says, making the new regulations &quot;ones that limit exposure of traditional leveraged intermediaries to the crypto world&quot;. But I also think we need to make sure the existing substantial barriers for unsophisticated individuals investigating in dangerous products cover the crypto world.<p>Pure &quot;caveat emptor&quot; works in a low-trust society. But it&#x27;s wildly inefficient, which is why rich countries are high-trust societies enabled through regulation. E.g., the reason you can safely eat at most restaurants is a web of food safety laws and health department restaurants. People who are used to that are in for stomach-clutching surprises when they travel to low-regulation, low-trust areas.<p>So for me letting crypto burn includes real barriers to scammers hoovering up the life savings of the naive. The simplest thing would be to extend the &quot;accredited investor&quot; standard, such that anybody who wants to play the digital ponies either needs to be rich enough to afford the losses or prove sufficient sophistication that they really know what they&#x27;re doing.<p>(And the answer to &quot;but why&quot; is twofold. One, society has to pick up the tab for people who run out of money. And two, the more money criminals have the more crime they can do, so we all have an interest in keeping the level of scams low.)