Avery Ching at the CFTC. It's more than just an appointment. It’s a potential inflection point. We were there for the crypto Wild West days, the boom, the bust, and now… perhaps, just perhaps, we’re seeing adolescence.

Is Crypto Finally Growing Up?

Ching’s appointment to the Digital Assets Markets Subcommittee signals a larger change. For years the crypto / regulator relationship has seemed contentious. It’s sort of like a teenage kid versus their parents – nonstop fighting over curfews, house rules, and who really knows what’s best for whom. Now, actually having someone with roots in the heart of Web3 in the room where it’s happening? That's a game changer.

It's not just about Aptos. It's about the entire industry. The CFTC, grappling with staffing changes and potential leadership shifts (with Summer Mersinger heading to the Blockchain Association and Brian Quintenz possibly returning), needs expertise. From there, they need to engage with what this technology can do, what the use cases are, and what is possible through digital assets. … and who better than someone who is literally creating the future of Web3 to share that vision with you.

Don't get too excited. This isn't a victory lap. It's a cautious step forward.

Collaboration Or Co-option: Which Is It?

There’s a big difference between collaboration and co-option. So, is Ching’s appointment a sign of the Biden administration’s sincere move to understand and embrace crypto? Or is it just a ploy for regulators to get deep expertise and seed the space? That's the million-dollar question.

Here's where the historical context matters. We’ve witnessed this unfold in other sectors. Imagine what it was like in the early internet days. Tough for regulators to understand at first, they eventually started exercising their authority. Will crypto follow the same path?

We need to give kudos to other members of the subcommittee, such as Gil Mandelzis of Capitolis and Samina Anwar of Cargill. These are established players in traditional finance. Will their perspectives overshadow the Web3 viewpoint? Her voice will only be heard if she is given the tools to reject the chorus of opposition organized by the status quo.

Frankly, some skepticism is healthy. Remember the emotion of anger/outrage? We’ve all experienced the pain when regulators appear to misread or unjustly lambast the crypto sphere. We now must do all we can to make sure this appointment results in appropriate, informed regulation and not a stifling stranglehold.

Regulation's Double-Edged Sword

Regulation is a double-edged sword. On the one hand, this may offer much-needed clarity, legitimacy, and protections to consumers and investors. When taken too far, it can pose a serious threat to innovation. This can force industry offshore and in the end, hurt the very industry it seeks to safeguard.

  • Benefits of Clear Regulation:
    • Increased Institutional Investment
    • Reduced Risk of Fraud
    • Greater Consumer Confidence
  • Risks of Over-Regulation:
    • Stifled Innovation
    • Talent & Capital Flight
    • Centralized Control

The key is finding the right balance. And that’s where Ching’s role is so important. If he cares about innovation, that’s what he needs to do—advocate for a balanced regulatory framework that encourages innovation and protects consumers. He will have to articulate the complexities of blockchain technology and what decentralization can achieve.

Consider the huge utility and practical value in this. Clear regulations can unlock massive potential. They restore certainty to institutions so they can invest with confidence. These measures spur innovation and help spread the benefits of crypto to a broader group of people. Bad regulations? If that weren’t bad enough, they can kill the industry before it has a chance to get started.

The potential return of Brian Quintenz to lead the CFTC, coupled with a growing "crypto caucus" in Congress, suggests a potentially more favorable environment for digital assets. We’ll believe it when we see realistic moves to regulate initiative, not window-dressing announcements.

In all seriousness, Avery Ching’s appointment to the CFTC really is a sign. Whether that indicates genuine maturation, or merely the planetary plastic equivalent of a power play, is for all of us to find out. It requires us, the crypto community, to better inform ourselves, organize, engage, and be vocal. That’s why we need to make regulators pay for their failure. Let’s make sure that the future of crypto continues to prosper on those same principles of innovation and accountability. The stakes are too high on our precious public lands for anything less.