Removing regulatory constraints can actually accelerate economic growth while keeping inflation in check—at least that's the thesis gaining traction among policymakers. The logic is straightforward: less bureaucratic friction means businesses can scale faster, innovate without hesitation, and deploy capital more efficiently. When regulatory barriers fall, companies redirect resources from compliance overhead into R&D and operations instead. This boost in productivity translates to real output growth—more goods, more services, more economic activity per dollar spent. The inflation concern? It doesn't necessarily follow. Higher productivity actually helps contain price pressures because supply expansion keeps pace with demand. For crypto markets, this dynamic matters enormously. A regulatory environment that stops micromanaging blockchain activity could unleash similar productivity gains in Web3 infrastructure, allowing protocols and platforms to scale without dilutive token issuance or operational drag.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
15 Likes
Reward
15
4
Repost
Share
Comment
0/400
AirdropHunterZhang
· 4h ago
Relaxed regulation can lead to growth without inflation? Man, I've heard that argument too many times, and it's always the same...
Speaking of crypto, if they really loosen up, it might signal another round of rug pulls. I need to stay alert.
The free-riding era is long gone; now we have to watch whether projects are alive or not.
For every bit of regulatory easing, tokens get diluted threefold. I've calculated this too many times.
The idea of improving productivity sounds wonderful, but isn't that what the crypto world always claims? Wake up.
However... if compliance costs can truly be reduced, the protocol side can indeed save a lot on electricity bills. I admit that.
View OriginalReply0
GasGoblin
· 4h ago
NGL, this set of theories sounds too idealistic. Will reality really be that smooth?
Deregulation ≠ automatic growth; it still depends on who is executing.
Relaxing crypto regulations can indeed get things done, but will it turn into another wild celebration...
Can productivity improvements curb inflation? I feel like I'm hearing a fairy tale.
Regulatory relaxation has two sides; the real challenge is balancing innovation versus chaos.
This logic feels like it's missing something, too linear... actual implementation will definitely be more complex.
View OriginalReply0
liquidation_watcher
· 4h ago
Does loosening regulation suppress inflation? I feel like this logic is a bit far-fetched.
---
Web3 is well explained, but who would believe it? Let's wait until policy shifts actually happen.
---
Increase in productivity = no inflation? That premise requires quite a bit of optimism to believe.
---
Wait, are you talking about the US approach or the global one? Policy space varies greatly between countries.
---
The crypto circle will definitely get excited again with this argument, but I've heard both bullish and bearish views already.
---
Talking all fancy, but the core issue is whether the government is willing to relinquish power.
View OriginalReply0
blockBoy
· 4h ago
Wow, this set of theories sounds really appealing, but what about reality?
Can regulation easing control inflation? Dream on...
DeFi projects have long been expanding in a loose environment, and the result? Still a mess.
Productivity is skyrocketing, but wallets aren't getting fat.
Can supply keep up with demand? Laughing out loud, this bull market is the best counterexample.
If Web3 were unregulated, tokens and related matters would be even crazier.
Just talking about improving efficiency, but who will protect retail investors?
It feels like policymakers are just making big promises again.
Removing regulatory constraints can actually accelerate economic growth while keeping inflation in check—at least that's the thesis gaining traction among policymakers. The logic is straightforward: less bureaucratic friction means businesses can scale faster, innovate without hesitation, and deploy capital more efficiently. When regulatory barriers fall, companies redirect resources from compliance overhead into R&D and operations instead. This boost in productivity translates to real output growth—more goods, more services, more economic activity per dollar spent. The inflation concern? It doesn't necessarily follow. Higher productivity actually helps contain price pressures because supply expansion keeps pace with demand. For crypto markets, this dynamic matters enormously. A regulatory environment that stops micromanaging blockchain activity could unleash similar productivity gains in Web3 infrastructure, allowing protocols and platforms to scale without dilutive token issuance or operational drag.