After almost a decade since Bitcoin was created, the SEC announced last week the creation of a new, senior position to coordinate the agency's cryptocurrency and ICO efforts.
As usual, the government showed up late to the party. But at least they showed up.
The good news is that the person chosen by the SEC to fill that position is quite sharp.
She has an engineering background, obtained her law degree from Georgetown, and, most importantly, she understands crypto.
The bad news… or at least the expectation that a lot of die-hard crypto fanatics have… is that increased government oversight will be negative for crypto prices.
Over the weekend, for instance, almost every major cryptocurrency fell, in part because the government launched an investigation into cryptocurrency price manipulation.
But in all likellihood, reports of cryptocurrencies' death have been greatly exaggerated.
Governments almost always regulate technology– automobiles, radio, television, the Internet.
And while regulations often create unnecessary costs and inconveniences, they haven't stopped the overall rise of these important technologies.
Crypto will likely be the same. It's too mainstream to kill off, and the SEC needs to show the world that it embraces innovation.
Plus, there are too many mega-corporations that have been investing heavily in their own blockchains and distributed ledger technology (DLT), and those companies have far too much political clout to be shut down by the SEC.
(DLT is the umbrella term to describe all the various technologies which distribute transaction information and records to various participants. Blockchain is one type of DLT.)