Crypto Deregulation: A Recipe for More victims, Not Hackers
deregulation in the crypto space isn’t creating more hackers; it’s creating more victims. As the U.S. eases oversight, inexperienced users flood the market, unprotected and unaware of the risks. This expands the attack surface, making the system vulnerable.
Weak guardrails lead to systemic vulnerabilities affecting finance, defense, and digital identity. AI-driven finance adds to the risk. Autonomous agents managing funds and trades can be hijacked on a massive scale.
Good-faith builders are left unsupported, competing against those who cut corners. Without consistent security standards, the ecosystem becomes fragmented. Each company builds in isolation, making up its own rules.
Recent high-profile breaches, like the $1.5 billion Bybit hack, highlight the need for reform. these attacks often exploit weak process design, not weak code. Phishing scams and deepfakes are on the rise, targeting both retail users and institutions.
As AI agents manage wallets and execute trades, the risk grows. Without embedded safeguards, these autonomous systems could cause catastrophic damage. Builders can’t secure the industry alone; a coordinated response is needed.
To secure digital finance, we need a public-private partnership. This should fund open-source security infrastructure, standardize exploit disclosure programs, and support identity frameworks. Security must be a growth driver, not a cost center.
Deregulation alone is not a strategy. Hackers are already exploiting fragmented infrastructure. The only way to build a resilient crypto economy is to prioritize security before scale. Without it, every step forward is another risk waiting to be exploited.
