New York is flirting with Bitcoin. Bill A7788 is currently advancing through the state legislature. If passed, it would be the first such law enabling state agencies to accept cryptocurrencies for all manner of payments—from taxes to traffic violations. While the siren song of financial freedom is alluring, we need to ask ourselves: are we ready to tango with this digital beast? And what will it cost us?

The allure of Bitcoin is undeniable. It holds a vision of a future where you can escape centralized banks and other financial intermediaries. In this new reality, borders are irrelevant, and you’re empowered with more flexibility and influence over your future financial success. That’s a seductive story line, too—resonating as it does with the American mythos of rugged self-reliance and personal freedom. Now, picture being able to pay your property taxes using Bitcoin—directly to the state treasury, without any bankers in the middle or fees. It sounds revolutionary, right?

We should not overreact to the hype. This “freedom” doesn’t come free. Those strings are laced through with volatility, complexity and a very real chance of financial disaster. As in any such technology, awe at the innovation must not prevent a proper consideration of the risks.

Attorney General Letitia James has rightly sounded the alarm, and it is time to heed her call. Her worries surrounding US national security and the future de-dollarization are right to raise alarm. This makes the rise of cryptocurrencies an unprecedented challenge to the existing global financial order.

Think about it: if Bitcoin becomes widely accepted, even partially replacing the dollar, what happens to our economic leverage on the world stage? What good does it do to enforce sanctions against rogue nations when they can just avoid the enforcement entirely using crypto? James is correct, we are for sure funding enemy states and cartel operations, and that is an abomination.

We’re not discussing an annoying little thing. We’re not just debating an isolated policy change, we’re debating the potential to erode the very foundation of US economic and political clout. It's not just about the price of Bitcoin; it's about the price of freedom and security. This isn’t only a question of dollars and cents − it’s a question of power.

If New York is really set on going forward with this Bitcoin experiment, then strong regulation is essential. We require something deeper than a general promise to “balance innovation and security.” We don’t just need guidance—we need clear, specific measures.

Put aside the exuberance of cryptocurrency for a moment. Imagine the fear of having your entire life savings taken away by a fraudster. Consider the concern about unknowingly providing material support for terrorist activities. Regulation isn’t anti-innovation—it’s how we protect ourselves and our forward-looking society from harm.

Regulation is not a one-time fix. It's an ongoing process. As the crypto landscape is changing, our regulatory framework has to change as well.

Ever heard of the Tulip Mania of 17th century Holland? Great fortunes were made and lost on the speculation of tulip bulbs. Americans maxed out their credit cards, mortgaged their homes, and poured in their life savings, betting on a get rich quick scheme. Sound familiar?

Bitcoin, just as tulips were, can be a speculative bubble. The technology underneath all of this might be truly revolutionary, but that doesn’t mean it’s smart money or isn’t a house of cards. In doing so, we should learn from history and not allow the mistakes of the past be repeated.

  • Strict KYC/AML Compliance: No anonymity. Every transaction must be traceable, and every user must be identified.
  • Licensing Requirements: Crypto exchanges and businesses must be licensed and subject to rigorous oversight.
  • Consumer Protection Safeguards: We need to protect vulnerable populations from scams and market manipulation. Financial literacy programs are essential.
  • Collaboration: State and federal regulators must work together to create a consistent and effective regulatory framework.

I’m not calling for an outright prohibition on cryptocurrencies. I’m an optimist at heart, and I truly believe that innovation and new technologies can help create better lives for everyone. So I’m a bit torn, as on the one hand I do support environmental stewardship and stronger governance to ensure the public interest is protected.

New York's Bitcoin experiment is a gamble. It might reward them richly, or it might explode in their faces. Move quickly and iterate often. Never take the interests of the corporate class before the welfare of our people or bend to the temptations of easy money.

Let's not blindly embrace the future. Let’s make it happen, and do so with imagination, vision, and a large helping of skepticism. It’s time to strike a better balance between the freedom to innovate and the imperative to defend our economy, our security, and our future. The future's uncertain, and that is scary.

Remember the Tulip Mania of the 17th century? Fortunes were made and lost on the speculation of tulip bulbs. People mortgaged their homes and invested their life savings in the hope of getting rich quick. Sound familiar?

Bitcoin, like tulips, has the potential to be a speculative bubble. The underlying technology may be revolutionary, but that doesn't guarantee its long-term success or stability. We need to learn from history and avoid repeating the mistakes of the past.

A Call for Prudence, Not Panic

I'm not advocating for a complete ban on cryptocurrencies. I believe in innovation and the potential for new technologies to improve our lives. But I also believe in responsible governance and the need to protect the public interest.

New York's Bitcoin experiment is a gamble. It could pay off handsomely, or it could backfire spectacularly. The key is to proceed with caution, to learn from our mistakes, and to always prioritize the needs of our citizens over the allure of quick riches.

Let's not blindly embrace the future. Let's shape it with wisdom, foresight, and a healthy dose of skepticism. Let's balance the freedom of innovation with the responsibility of protecting our economy, our security, and our future. The future's uncertain, and that is scary.