The Department of Justice investigation is already dividing the crypto enthusiasts into two camps. One camp, which is favorably on the anarcho-capitalist side, abhors any governmental investigations.
But on the other hand, the seasoned crypto investors are coming to support this move one by one. We have already covered the stance of Wall Street Crypto watcher Fundstrat Global. Thomas Lee, the head of Fundstrat, has already welcomed the investigation.
Despite their somewhat condescending tone (calling for the ‘adult supervision’ of the crypto market), this camp claims that the involvement of authorities carries long-term benefits.
This will provide legitimacy and structural integrity to these transactions. Now looks like other players are jumping in. Wall Street investor Mike Novogratz has also expressed his support. Novogratz is planning to open a new digital bank which will operate completely on cryptocurrencies.
The stance was shared by the crypto billionaire Winklevoss twins. Winklevoss twins have already made news with their announcement of the Gemini exchange. Their platform has already made deals with the New York financial regulators.
The aim of all these big players seems to be attracting more and more traditional investors in this new field. This can be achieved if the traditional investors trust the market.
One way to make them trust is the involvement of the same regulators who also manage the traditional corners of the financial markets.
This will probably increase their interaction with the crypto market and create a long run base for their involvement in the market. The game seems strategic but can turn in another direction. The crypto market is built on the decentralized notion of financial governance.
The attitude of federal agencies and regulators is diagonally opposite to the attitude on which crypto market operates.
The centralization is the building block of the federal regulation. If the regulators went with their traditional approach, the investors may not feel very welcoming to them after all.