Consumer protection or consumer benefits – CATO Institute

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Dana Syracuse, one of the draftsmen of the Bitlicense, made an interesting point at the recent CATO Institute conference on blockchain that focusing on “consumer protection can cause lawmakers to overlook consumer benefits, especially benefits to worldwide consumers priced out of traditional financial services.

The backdrop of this remark came after policy concerns during the event around stifling innovation in the US due to Money Service Business licensing rules requiring state-by-state level registration for cryptocurrency businesses; leading to the conclusion that innovators may decide to move their business elsewhere.

Margaret Liu from the Conference of State Bank Supervisors agreed that many regulations were out-dated and “ill-suited for new technologies and business models“. More details on the event are here, note in particular Commission Giancarlo’s epic speech.