In ways various and sundry, blockchain technology is quietly thriving, even as regulators everywhere tighten their grip on the Wild West of cryptocurrencies.
Why it matters: In the wake of FTX’s collapse and a gradual rebound from the crypto winter’s darkest days, the formerly freewheeling market is in transition as regulators grapple with how to protect investors.
According to some experts, the flourishing sector is a symbol of how the public is slowly disentangling the blockchain from crypto.
What they're saying: “It’s a technology that adds a ton of security and is tamper proof,” Manohar said, pointing to a growing list of governments relying on blockchain, even as they crack down on crypto trading.
Zoom out: Countries like India, Saudi Arabia and Colombia are tinkering with blockchain applications, while California made it the cornerstone of recent efforts to revamp the state’s Department of Motor Vehicles.
Yes, but: Some fear heavy-handed enforcement in the wake of FTX’s implosion and the subsequent shakeout in crypto could have a retrograde impact on blockchain’s development.
This week, the Chamber of Digital Commerce called on Washington to adopt a comprehensive framework for digital assets.
Crypto is just beginning to emerge from a phase Manohar jokingly describes as the vice-filled “porn and gambling” era that defined the early internet. Conflating crypto’s negatives with the technology that underpins it is a risk to the blockchain’s development, he argues, especially in an already weak environment for fundraising.
The bottom line: “Regulators shouldn’t throw the baby out with the bathwater,” Manohar said.