Proof of State is the Wednesday edition of Fortune Crypto where Leo Schwartz delivers insider insight on policy and regulation.
With the crypto industry facing a deluge of regulatory backlash, the common refrain among U.S. entrepreneurs is that aggressive action will push them offshores, where they can freely frolic in the sandboxes of more hospitable regimes, like the Bahamas or Dubai. This tired rhetoric often elicits eye rolls—traditional bankers have been using the argument for years, after all—but Monday’s stunning salvo from the CFTC against Binance illustrates what it really means to let crypto operate outside of the control of U.S. regulators.
