The U.S. Securities and Exchange Commission has approved Ether and Bitcoin ETFs, and the U.S. House has passed FIT-21 with bipartisan support. These developments are seen as progress in the effort to regulate and reduce risks in the crypto market.
One key concept that could make crypto safer than the existing financial system is “self-custody.” This means individuals can control their own assets and data during transactions without relying on intermediaries like banks or exchanges.
While many people may associate crypto with headline-grabbing disasters, such as the collapse of FTX or the conviction of Binance’s CEO on money laundering charges, these incidents are more about human behavior than the nature of crypto itself.
During the 2019-2020 bull market, developers focused on creating user-friendly crypto applications often sacrificed self-custody by trusting centralized exchanges. This led to disasters for companies, investors, and customers.
The collapse of Synapse Financial Technologies, a non-crypto company providing bank-like services, exemplifies the importance of trust and custody in financial transactions. This company is now facing potential bankruptcy, leaving many depositors at risk of losing millions.
The strength of crypto lies in its ability to enable developers to build faster and leaner applications, while also ensuring data security and custody of funds. Crypto-powered apps now offer user-friendly interfaces with self-custody features, reducing the risks associated with centralized entities.
As crypto infrastructure matures, developers and entrepreneurs are excited about the potential for digital assets to become safer, faster, and easier to use. The goal is for crypto to become a seamless part of the mainstream financial system and everyday life, offering a secure and efficient alternative to traditional methods.
