Over the last few years, the United States has witnessed a flurry of private tokens entering its crypto market. Most of these private tokens are publicly traded without express approval from the market’s regulators. In some cases, companies are now selling blocks of digital assets to promoters, after which the public purchases them at a much higher price. According to Charlie Munger, the public needs to understand how that single action has helped the promoter.
Will the United States gain from banning crypto?
These events in the crypto market have been described as a wild capitalist move condemned by the bigwigs of the United States. However, all these events have been allowed to go on because there has been excess regulation. Digital assets are not qualified to act as legal tender, securities, or commodities. In the proper sense, they represent a gambling contract that tips everything in favor of the house.
However, the case is different for the United States as it has a traditional body that regulates gambling for each state. This means that the US needs to create a law that eliminates this. One of the two things that could spur the action of the US is the recent ban on crypto meted out by China. According to the country, digital assets would cause more harm than good if this action is not taken.
Munger wants the US government to ban crypto
Another interesting example that could help the United States in its decision is England’s decision in 1977 after the high-flying promotion plan got busted. After the promotional program got busted, the English parliament suspended all trade in new stocks and allowed the ban to remain in place for over 100 years. After the decision, England was able to contribute a massive quota to its movement towards civilization in terms of revolution and enlightenment.
This brings us to the question of what the United States should do after it bans cryptocurrencies? The first thing is to send a Thank you letter to the Chinese government for their courage in banning digital assets. Meanwhile, there has been uproar worldwide about the decision of China to ban crypto across the country. While others, like Charlie Munger, believe that the move is good, others do not buy the idea.