I remembered why I never bothered with reading mainstream information on the crypto space for quite some time - it is simply filled with too many negative reports. After noticing the rally thinking I could catch a break, I saw news reports of another major crypto Bank in the U.S shutting down.

Signature Bank was closed on March 12 by the New York Department of Financial Services.

Actually, forced to close best fits the description. It seems regulators are gradually coming down hard on crypto projects and crypto friendly institutions. They have apparently seen enough, after the major disasters that occurred last year in the space, and with the recent Silvergate incident. While protecting customer deposits is as valid an excuse one will get for regulatory intervention, I wonder if a clampdown solves or escalates the problems.

The level of regulatory interventions are only going to increase as things take shape and the space matures. I did think we were since past the era where regulators will actively try and shut down the crypto space but it seems that celebration was premature. At the very least, there does seem to be greater effort geared at discrediting the space now more than ever.

We can't be too relaxed it seems in terms of how far we have progressed. Proof of value will not necessarily speak in the face of vested interest once there is no audience. It is imperative that crypto continues to earn the trust of the audience that does pay attention to it and invest heavily. While the debate of whether regulations are needed varies in opinions from person to person, there is little argument concerning the intentions of regulators.

Power is Power

There may be some regulators genuinely intrigued by the crypto space and the potential it wields, but it is safe to say that every regulator who has interest in the space wants absolute control. You can't blame anyone either, such has been the concept for centuries now and the bad actors merely solidified the messianic complex of regulators in the crypto space.

I do think regulations are necessary to an extent, particularly in flushing out bad eggs and helping to improve legitimacy, but am simply not carried away by this mindset. For crypto to continue to deliver its vision of giving more power to the hands of individuals to control their financial interests, there will need to be caution in this symbiosis with regulators and other interests.