The Crypto Miranda Warning

2 months ago 35

CRYPTO REGULATION

Robert Hirsch

The Capital

A free version of this essay about an easy regulatory shortcut for crypto that should work for everyone is available here.

an image of a cop reading a miranda warning to a bitcoin icon in a car
Image created in chatGPT with prompt “a cop reading a Miranda warning to a bitcoin icon in a car”

In the evolving world of cryptocurrencies, the conversation around regulation often shifts between overreach and under-enforcement. While governments rush to impose rules on digital assets, I propose a simpler, more effective solution: the Crypto Miranda Warning. Something that crypto companies can state to their current and future customers so they understand what they are getting involved with, just like a cop reads your Miranda statement so you understand your rights in that situation.

Just as other industries have created disclaimers to protect consumers and reduce regulatory burdens, crypto needs a clear, concise statement that informs users of the risks without stifling innovation.

In traditional finance, one of the most prominent disclaimers is found on almost every investment-related document: “Not FDIC insured. May lose value. No bank guarantee.” This warning serves as a boundary between government-insured financial institutions and risk-based investment products…

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