Cryptocurrencies Will Modernize The Entire Capitalist System – Crypto News

Calling crypto “Web 3.0”, the third layer of the internet that enables permissionless asset ownership on the Web, “undermines” crypto’s true significance, which is a complete overhaul of the capitalist system, according to Mert Mumtaz, CEO of remote procedure call (RPC) node provider Helius. 

Mumtaz said that crypto supercharges all the necessary ingredients for capitalism to function properly, including the free flow of information in a decentralized way, immutable property rights, incentive alignment, transparency, and “frictionless” capital flows. Mumtaz added:

“Crypto’s endgame will be that it fundamentally evolves the most impactful human invention of all time: capitalism. We said crypto was Web 3.0, but that undermines it — it is actually capitalism 2.0.”

In September, the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), two US financial regulatory agencies, released a joint statement teasing the possibility of 24/7 capital markets in the country.

If the agencies succeed in establishing always-on capital markets, the move would mark a significant and seismic departure from the legacy financial system, which is slow to move and closes on nights, weekends, and most holidays.

Related: Tokenization could unlock capital markets growth in Latin America

US regulators signal that 24/7 financial markets are coming

The SEC and CFTC outlined several points that could modernize the existing financial system, including always-on markets, regulatory frameworks for perpetual futures contracts — futures contracts without an expiry date — and regulations for event prediction markets. 

“Certain markets, including foreign exchange, gold, and crypto assets, already trade continuously. Further expanding trading hours could better align US markets with the evolving reality of a global, always-on economy,” the joint SEC and CFTC statement read.

These proposals would further intertwine the traditional financial system with digital assets and migrate the legacy financial system to internet capital markets through digital rails, including the tokenization of real world financial assets on the blockchain.

Tokenized assets can include stocks, fiat currencies in the form of stablecoins, private credit, bonds, art, collectibles, and even real-estate.

In July, the Solana Foundation, the organization that oversees the development of the Solana blockchain network, revealed a roadmap to develop internet capital markets through 2027.

The roadmap came amid several blockchain companies and traditional financial firms announcing tokenized products, including mixed brokerage platform Robinhood, which introduced tokenized stock trading in July for European users.

Magazine: Can Robinhood or Kraken’s tokenized stocks ever be truly decentralized?