American actor Ben McKenzie and co-author of “Easy Money: Cryptocurrency, Casino Capitalism and the Golden Age of Fraud” believes cryptocurrencies should be recognized as securities.
Ben Mckenzie, known for his prominent role in the movie “Lonely Hearts,” said the lack of regulation of cryptocurrencies risks significant losses for investors.
McKenzie is confident: if cryptocurrencies are categorized as securities, it will only increase security for investors and protect them from fraud.
McKenzie also emphasized that the cryptocurrency industry is characterized by fiat trading.
The actor argues that the “pseudonymity of blockchain” allows people to create multiple accounts, making it harder to identify their owners.
Therefore, market participants use this tactic to artificially inflate asset prices or create the illusion of increased market activity.
McKenzie even mentioned a certain article that stated that 70% of fictitious cryptocurrency trading is accounted for by unregulated venues specifically.
According to the writer, things wouldn’t get so bad if cryptocurrency companies were regulated on par with financial institutions, as they would be subject to stricter investor protection rules.
Jeffrey Sprecher, CEO of NYSE Intercontinental Exchange Inc (ICE), the operator of the NYSE’s stock exchange, has the same viewpoint.
He believes that regulating cryptocurrencies similar to securities will reduce digital asset fraud.