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Comment by neilv | Hacker News Reader

At the same time, Coindesk.com front page includes this:

https://www.coindesk.com/layer2/2022/11/30/a-self-regulatory...

> A Self-Regulatory Organization Is the Best Way to Advance Crypto While Protecting the Public

> The financial industry, collectively, has greater domain expertise than can be expected of regulators. This reality invites transparent, fully accountable, self-regulation.

I'd think anyone could see that it's virtually all scams atop schemes atop scams, and find grounds to shut it all down.

Of course people who would like to run these scams and schemes would like to self-regulate it.

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Can you imagine anyone proposing this for the ordinary financial sector? The hardcore libertarians would approve, but nobody else would take such a proposal seriously.

While I'm pretty skeptical a SRO would work for crypto, as mentioned in the article, SROs like FINRA are one of the main sources of regulation in the ordinary financial sector.

Usually industries try to self-regulate at first. Sometimes they do an acceptable job, and sometimes they get regulated by outside agencies.

Money's been regulated since the beginning of time.

And when/where it wasn't, we usually called the place a failed state.

Actually SIPC is exactly that and is probably what the crypto industry wants to model themselves after.

In case anyone is curious: https://en.wikipedia.org/wiki/Financial_Industry_Regulatory_...

> The Financial Industry Regulatory Authority (FINRA) is a private American corporation that acts as a self-regulatory organization (SRO) that regulates member brokerage firms and exchange markets.

The regulators didn't catch Madoff.

SBF's greatest punishment will not be jail. It will be that he can't show his face in public for fear of running into someone who lost money.

Noone will want to do business with him anymore because of reputational risk.

Ftx most likely had deposits from some really cleaver hackers with real anger management issues. Any parcel he opens could be a bomb.

Prediction: The next mega entrepreneur in the crypto space will be extremely transparent.

SBF's greatest punishment won't be jail because it looks like he won't go to jail.

I don't know about you, but I'd much rather have a garbage reputation than go to jail for a long time.

Yeah, it will be just like Adam Neumann at WeWork ... he'll never raise money again ...

Very apt username you have!

I wonder at what point will the investors in these funds start to complain

(I mean, except for the "Vision Fund" or other BS like that).

But Sequoia's reputation probably took a dump from the latest episode

Maybe its nothing, but a lot of those crypto billionaires recently died shortly after one another:

Vyacheslav Taran, 53: died in helicopter crash

Mircea Popescu, 41: drowned in the ocean

Tiantian Kullander, 30: died in his sleep

Nikolai Mushegian, 29: found dead on a Puerto Rico beach

> The regulators didn't catch Madoff.

In some sense, sure they did. He went to jail. And his investors got back 80 cents on the dollar.

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