As bitcoin becomes more mainstream, the need for regulation will rise, despite the concerns that it could stifle innovation. The key issue is how to strike the right balance between protecting consumers and investors, while allowing innovation to continue. In the past, regulation has been difficult, as it can be hard to apply existing regulation to bitcoin, and new regulation can come up against a wall of resistance.
However, it is clear that the bitcoin community requires some form of regulation, and it is imperative that this balances the needs of consumers and investors with the needs of the bitcoin community.
