Raoul Pal Calls Double Standards In Regulators’ Approach To Crypto
According to macro analyst, Raoul Pal, U.S. regulations on cryptocurrency investing are completely inconsistent with existing laws in other areas, and he delivered a message to the SEC in a recent interview.
Pal who is the CEO of Real Vision, highlighted regulatory double standards in a recent interview, saying that it makes that the regulators allow consumers to risk losing all of their money in Las Vegas, but claim to be protecting the small investors when they make investing in crypto very difficult.
“Consumer safety… the onus has to go on the consumer. You and I can go to Vegas and throw anything on the table and lose it all, everything. We can mortgage the house and do it, no regulations, zero. But heaven forbid if we buy a token, because it might be a scam.
If that’s the issue, then firstly give people warnings. Maybe the exchange is safe, you want to buy this, you have to understand it’s a high-risk asset because it has a low market cap and therefore you should be aware that you could lose everything. That’s okay, risk warnings are fine, but to say you can’t take a risk is crazy.”
The analyst argues that the rule requiring venture capitalists to be ‘accredited investors,’ or have a net worth of at least a million US dollars, is blatantly in favor of big institutions and effectively excludes Millennials from the financial markets.
“This is why Wall Street gets richer all the time, because to get access you have to do it via a financial institution. It’s the same with venture capital… If you have a million dollars, you’re not dumb money and everyone with less is dumb money. That’s insulting to people.
All of this is going to have to change. Accredited investor rules are going to have to change, it’s simply not acceptable to force Millennials, some 86 million of them, out of the marketplace because somebody in Washington says ‘Well, they’re not safe for you guys.’”
Pal made these points after the Minnesota House Republican Tom Emmer told U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler to back off crypto, saying the ‘vast majority’ of coins are not in the SEC’s purview:
“All regulators want more jurisdiction. But I think Gary Gensler’s vision is much broader, and frankly because of it, he’s having a negative impact – and potentially will have a really big negative impact – on retail investors and opportunities out there that entrepreneurs and innovators might provide.”
"You and I can go to Vegas and throw anything on the table and lose it all… no regulation, zero. But heaven forbid if we buy a #token, because it might be a scam…"@RaoulGMI on the "consumer safety" excuse being used by the #SEC. pic.twitter.com/EUoBEVnqfr
