The co-founder and CEO of the crypto finance firm Circle which is backed by Goldman Sachs has said that the biggest regulatory obstruction faced by the crypto industry in today’s time is the lack of clarity from the securities regulator of the United States of America about how to define the different global cryptocurrencies.
Jeremy Allaire has commented his thoughts with in an AMA reddit thread which was initiated by him on 10th January ’19 with co-founder of Circle, Sean Neville and other important officials of the firm.
While answering a question over the efforts of Circle to educate regulators, for example the Securities and Exchange Commission [SEC] about the crypto industry and regarding the certain difficulties faced by the firm, Jeremy Allaire said,
“The biggest and most immediate regulatory hurdle we face is the lack of specific guidance from the SEC on how to classify various crypto assets. We believe many are clearly currencies and commodities, and there needs to be more specificity on what are really securities. This can unlock a lot of market activity, and also clearly enable the growth of a market for crypto-based securities.”
In response to other regulation-focused questions, Allaire said,
“Circle believes that tax treatment should be differentiated for crypto-to-crypto transactions.”
The other topic which got significant importance were privacy related talks of specific crypto assets such as Monero [XMR]. The chief compliance officer and head regulatory counsel for Circle, Robert Bench made it clear that there was no specific legislation which has been drafted in the United States of America for the privacy of coins. Circle might be using crypto assets into account for the risk assessments of customers.
Taking into consideration the tackling of privacy and anti-money laundering [AML] compliance being on a high in the agenda of the regulators, Robert Bench said,
“I wouldn’t underestimate the ability of smart industry and government participants to find solutions to provide transparency on these coins [in the future].”
Jeremy Allaire has said that Bitcoin [BTC] will be worth a big deal more than now. He commented,
“I do not think it’s winner-take-all. We have the phrase ‘the tokenization of everything,’ and we think cryptographic tokens are going to represent every form of financial asset in the world. There will be millions of them in years.”