Folks very quickly forget that regulations are written in blood.
You know what other kinds of regulations are onerous? Everything aviation related. Every corner of aviation. And yet we're not clamoring to deregulate aviation because the consequences are so clear and self-evident.
Regulations are generally there for a reason. If they aren't, they need to be amended, we don't need to make our own money, except for blackjack and hookers.
These people likely do not know of the lives destroyed by the wildcat banking era of the mid-1800's in the United States, which is what DeFi seems to become.
People don't think of the failing power of international sanctions.
The consequences of a fully de-regulated financial system will likely lead to more armed conflicts. That said, I agree that the political system is broken, but that's a problem of democracy.
The historical consensus behind this idea is not there. Here's [1] a good example of some scholarly dissent. I'm pretty sure the truth is more complicated than advocates of the "Wildcat Banks evil" idea keep parroting.
Not all regulations are written in blood, and not all regulations have their intended effect.
Aviation is a great example of this. Yes aviation in most of the developed world continues to be extremely safe and the regulations are largely written in blood, off the backs of many failed aviation experiments. But regulations _are_ stifling aircraft design and the FAA is trying to desperately figure out how to not calcify the industry without endangering people. Anything but your largest passenger movers are all either from the 1960s or just reruns of these '60s designs. Despite huge advances in sensor fidelity, reliability, and electronics process changes, the cost to certify a new aircraft design is so high that most aircraft makers don't bother and just coast on old designs that have already been approved and are mostly just grandfathered in designs. It's taking decades for leaded aviation fuel to be phased out because of the difficulty in iterating on engine designs due to above regulations. We could have been much farther along in aircraft energy efficiency, maybe even electrification, if these regulations weren't as onerous. (One could even make a case, though probably unsubstantiated, that had regulations not had this impact that aviation would be cleaner and would lead to lower pollution-based mortality, so a regulation that's _ensuring_ blood.) Experimental aviation and sport aviation regulations in the US are a direct response to this slowdown in innovation and I hope they pave the way for more lightweight regulatory out-valves in aviation.
Ham radio is another great example of a medium that is dying due to regulations. There's large restrictions on digital modes and encryption on multiple ham bands. Because of the internet then, Ham doesn't really offer anyone anything that they can't do on the internet, so most people these days just don't care. The regulations themselves are in place to make sure the spectrum allocated to amateurs isn't abused; allow encryption and commercial vendors will use Ham bands for their own private operations, and allowing too many digital modes could (but doesn't necessarily) increase the noise floor. That doesn't mean that regulation doesn't have a strangling effect on the medium as a whole.
It's important to remember that as technology improves, regulations may have to be rethought. I'm fully onboard with the idea that regulations need to work hand-in-hand with the market to produce desirable outcomes, but to deify regulations like this is much too coarse a filter for a complicated, nuanced issue like finance. It provides a nice fight with clearly delineated sides when you pit "regulation good" people against "regulation bad" people, but the truth is that regulations are complicated and IMO should be reevaluated in the face of change.
Correct that was the whole point of my post. Regulations need to be constantly rethought. The positions of "regulation good" or "regulation bad" are just too simple to be practical.
You know what other kinds of regulations are onerous? Everything aviation related. Every corner of aviation. And yet we're not clamoring to deregulate aviation because the consequences are so clear and self-evident.
Regulations are generally there for a reason. If they aren't, they need to be amended, we don't need to make our own money, except for blackjack and hookers.