​The media is currently in a frenzy over crypto policy, with two major U.S. newspapers publishing exaggerated and misguided opinions on the subject. In a recent column, New York Times writer Paul Krugman, known for his skepticism towards the impact of technology on the economy, dismissed crypto as “technobabble and libertarian derp.” He also claimed that crypto does not solve any problems that cannot be solved more easily and cheaply through other means. The Washington Post editorial board also joined in, penning a poorly-supported love letter to SEC Chair Gary Gensler, stating that crypto is a volatile asset with no intrinsic value and is primarily used for illicit activities. And now, another opinion piece in The New York Times warns readers not to be fooled by crypto.

With the upcoming election and the potential impact on crypto and America, it is crucial to correct misinformation about crypto. As Senator Daniel Patrick Moynihan famously said, “You are entitled to your opinion, but you are not entitled to your own facts.” Here are some important facts to consider:

First and foremost, only a small percentage of crypto is used for illicit activities, much less than what is seen in traditional finance. According to the United Nations, illicit activities in traditional finance could account for up to 5% of global GDP. In comparison, analytics firm Chainalysis reports that money laundering in crypto accounts for less than 0.5% of all transaction flows and is decreasing over time. While any amount of illicit activity is concerning, singling out crypto as the main culprit is both inaccurate and overplayed.

Furthermore, crypto has many legitimate uses. Stablecoins, which are pegged to the dollar, have a total market capitalization of over $160 billion and are used for payments. Crypto is also being used for election prediction markets, such as Polymarket, which even New York Times reporters monitor for insights. It is also being utilized for real-time trading through decentralized finance and for billions of dollars in remittances between the U.S. and Mexico.

Claims that Chair Gensler is a fair and impartial regulator focused on passing regulations for crypto are also misleading. In reality, Chair Gensler has actively opposed efforts to pass legislation on crypto, despite previously stating in 2021 that he needed more authority to regulate the industry. It is clear that his actions do not align with his supposed intentions.

In conclusion, it is important to fact-check and correct misinformation about crypto, especially during such a crucial time for the industry and the country. As the saying goes, “Don’t believe everything you read.” 

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