Senator Dave McCormick is making headlines with his new Bitcoin purchase. He invested $505,000 to $1.1 million into the Bitwise Bitcoin ETF, creating a huge amount of hype. He’s a majority member of the Senate Banking Committee, which is continuing to shape crypto regulation with his introduced GENIUS Act providing for stablecoin regulation. While he sings praises for digital assets, a question lingers: is this genuine support for Web3's promise, or just Wall Street infiltrating the digital frontier?

Wall Street's Trojan Horse?

Web3 promised a revolution. Decentralization, democratized access, power to the creators – these seem worlds apart from Wall Street’s long and storied history of exclusivity and control. Now, picture this: McCormick, a former hedge fund CEO, investing heavily in Bitcoin while simultaneously shaping crypto regulations. It's like inviting the fox to guard the henhouse, isn't it?

Take the GENIUS Act, for instance, which would address stablecoins by mandating they be fully backed by U.S. dollars. Though some believe this added regulation brings authority, others view it as an effort to ensure established financial sectors’ continued supremacy. Is this really about consumer protection, or about trying to herd crypto into a more traditional, regulated paradigm? Too frequently, regulation becomes an anchor that hobbles innovation. It’s often a rigged game that favors incumbent players, creating a poor environment for promising new ideas to grow and succeed.

Now, let’s take a step back and consider the overall context, particularly with regard to Southeast Asia. Or an aspiring young artist in Indonesia who simply can’t afford to get by. Then they find a lifeline in NFTs and blockchain-based platforms. Their open-source nature allows for unprecedentedly direct access to global markets, outside of traditional industry gatekeepers.

Southeast Asia's Creative Future at Stake?

What’s more concerning is what goes on when regulations, swayed by the likes of McCormick, begin to clamp down. Will these artists get lost in inexpensive but labyrinthine compliance requirements? Will the big banks or some other financial players come in to consolidate power and control? This might reproduce the very power dynamics that Web3 sought to overcome.

Anya, a digital artist based in Manila, has produced art for brands and small businesses, funding her passion through her work on NFTs. “Web3 has provided an opportunity that I was never afforded,” she stated. I’m concerned about these provisions. How will they really help me, and won’t they just make it even more difficult for me to compete against the big guys? That's the fear, isn't it? The anxiety that this incredible new technology will get captured, while dynamic new creative economies in emerging markets surge ahead.

The fact is, there’s no more room for error. The stakes could not be higher. We’re discussing the upside of economic emancipation vs the downside of neo-colonialism, digital edition.

So, what's the answer? Are we going to go ahead and demonize McCormick—and everyone else who simply wants to connect Wall Street and Web3? I don't think so. The wonderment of the blockchain’s potential is real. We need to be vigilant. We need to demand transparency and accountability.

Decentralization's Last Stand?

We want to see crypto regulation that upholds debtor and creditor protections, protects decentralization and community governance, and serves the needs of these new markets. Imagine a regulatory framework that:

So don’t take Wall Street at their word. Let’s shine a light on the people who are really creating Web3 – those serious artists, developers, and engaged community members who are creating a more equitable and decentralized world.

  • Encourages innovation, not stifles it.
  • Empowers artists and creators, not exploits them.
  • Promotes financial inclusion, not exclusion.

Perhaps, instead of the GENIUS Act, we need a "Community Empowerment and Artist Support" (CEAS) Act, focusing on education, access, and fair competition within the Web3 space.

Now McCormick’s Bitcoin bet can be used to make positive changes. Most importantly, it serves as a bridge to deliver the legitimacy and institutional investment the crypto world so desperately desires. Only if we—the Web3 community—hold him and others like him accountable. Definitely—but only if we don’t allow Wall Street to continue to rewrite the rules of the game. The future of Web3 depends on it. It depends on you.

McCormick's Bitcoin bet could be a catalyst for positive change, a way to bring much-needed legitimacy and investment to the crypto world. But only if we, the Web3 community, hold him and others accountable. Only if we refuse to let Wall Street rewrite the rules of the game. The future of Web3 depends on it. It depends on you.