Why regulation is essential to currency

The problem with "code is law"

The idea behind many cryptocurrencies is that the code itself is the law—no outside regulation, no accountability. This “code is law” mentality might sound clean and fair on the surface, but in practice, it leads to chaos. Here's why:

Why pure anarchy undermines markets

• Markets rely on trust and rules

• If you don’t know whether the people or institutions you're dealing with are honest, that’s a serious problem

• Just one convincing bad actor can destroy not only a single institution but ripple through the entire market

• Innocent people lose money—not just the scammers

The need for market oversight

• Without transparency, markets can’t stay stable

• That’s why we need centralized oversight to make sure rules are followed

• If no one is held accountable, then bad behavior goes unchecked

Crypto's wild west mentality

• In a system where anonymous people trade with other anonymous people with no consequences, there’s no protection

• This leads to a wild west–style environment where people are tempted to take the money and disappear

• The incentive structure is broken—it’s built to reward dishonesty

Conclusion

The idea that code can replace regulation sounds appealing, but it falls apart in the real world. Without rules and accountability, markets collapse—and everyone pays the price.