- “When [regulators]come out with regulation, it’s going to open the floodgates for new money to come into crypto,” says crypto trader Ran Neu-Ner.
- Some crypto traders say regulating cryptocurrency could help clean up the market for digital coins, preventing future manipulation.
- Founder and CEO of investment firm BKCM Brian Kelly told CNBC on “Power Lunch” Thursday that the DOJ’s probe is not necessarily a bad thing.
Regulating cryptocurrencies is a good thing and it might even help advance the digital currency market, crypto trader Ran Neu-Ner told CNBC on Thursday.
While Neu-Ner said there will be crackdowns during this process, he encourages it.
“I hope that they can catch the people [conducting fraudulent activities], because we have to weed out the bad actors,” said Neu-Ner, who is the founder of OnChain Capital and an early investor in bitcoin.
“If we have bad actors, it’s going to create a lack of trust in this asset class,” he said. “If we want to make this a real asset class, with real people, then let’s weed out the bad actors. But the first step is, let’s legislate first; let’s regulate first. So we know what the playing field looks like.”
This week, the U.S. Department of Justice (DOJ) launched an investigation into whether traders have been manipulating the prices of bitcoin and other cryptocurrencies — part of increased regulatory scrutiny in the sector.
Earlier this month, the U.S. Securities and Exchange Commission launched HoweyCoins.com, a phony website designed to teach investors what fraudulent ICOs, or initial coin offerings, might look like. The North American Securities Administrators Association’s “Operation Crypto-Sweep,” a look into 70 possible crypto schemes, also began in May.
“They’ll be able to clean [cryptocurrency exchanges]up a little bit,” said Kelly, whose firm focuses on digital currencies.