I'm aware of FATCA. It's my understanding SEC uses SWIFT as leverage over foreign banks, and threatens to restrict usage if not compliant.
Cryptocurrencies obviate the established monetary transfer system. Not to mention exchanges don't have to deal with banks to begin with. The only exchanges I could see getting targeted are those exchanging fiat currency to crypto.
Also, how could any government even think of moving on decentralized exchanges? Target the coders?
Here I will give you an example of how governments work, and you can tell me if I am wrong. I will use the example of an infamous illegal substance which comes from a natural plant, which is banned throughout most of the modern world called cocaine.
In China there is a a famous idiom "Kill the chicken to scare the monkey", which is what governments do all the time with selective enforcement.
Replace the word "cocaine" with "token which is a security" in the above example, and you have exactly what will happen to a select few once regulatory frameworks are put into place. Some will get away, some will be fined, some will lose everything and go to jail. Funding drugs, crime, terrorism and money laundering will be the chants repeated by regulators, whether true or not. This playbook has been used since the beginning of organized society, "for the children" and "we need to protect you from yourself".
In reality there are lobbyists with big dollars headed to regulator revolving doors to get this unregulated space under regulation and on a global scale. Don't believe me? Why is opium illegal yet pharmaceutical opioid abuse is a major problem in America? Big pharma lobbyists or "for the children", you tell me.
I couldn't have said it better. In any case, Anarchy is not ideal.
I agree with what you're saying in how the US government can and will use intimidation and will act on, or coerce other governments to act on foreign companies and individuals. However, if even one jurisdiction refuses SEC demands, which is increasingly likely as BRICS nations pivot from SWIFT, and allows an unregulated exchange, what now? WikiLeaks is still kicking and Julian Assange isn't in jail (supposedly), and we all know to what ends the US has gone to plug those leaks.
My other point also remains, how can a government, or coalition of governments take on a decentralized system without it being an exercise in futility?
The proverbial monkeys are still torrenting en masse, despite the killing of and threats to kill more proverbial chickens. Given .gov success at taking down torrent sites, ahem ThePirateBay, and prevention of peer to peer file sharing, what success will they have at taking down decentralized cryptocurrency exchanges?
Your comparison to Torrents is interesting. But keep in mind Torrents only threaten the existing model of selling content that the entertainment industry enjoys. Torrent use does not threaten the very thing that gives governments power, which is the monopoly they have in the issuance of FIAT. Do you really think they will sit this one out on the sidelines?
I don't think they'll sit back, I just don't see how they can successfully reign in cryptocurrency exchange regulation.
We may be able to change their policy by affecting public opinion throw educating campaigns , espicially as we have stable tokens (like bitusd ) that cant be a bubble
We also can buy policies by supporting politicians who are pro innovation