Clarification from Regulators Can Help Crypto Community
Though tightening of regulations of cryptocurrency market drags sentiment at least in the near-term, regulatory clarity could lead to attraction. This is the gist of the conference on Distributed Markets that took place in Chicago a few days back. The meet attracted experts from financial and blockchain technology to shed light on the available opportunities. They have also highlighted the potential changes that the digital currency sector is currently facing. Another significant aspect is that regulations are not regarded as an unfavorable catalyst to lift sentiments.
The objective of the conference is to educate the participants of the conference on integration of blockchain technology with their businesses. This would increase not only overall efficiency but also provides cost-effectiveness to the businesses, bitcoin magazine reported. A hackathon and a Blockchain Academy workshop were available to offer a chance to study blockchain macro cases to developers.
The organizer believes that it could demonstrate the developers’ skills. Significantly, the biggest issues that are haunting the regulator is how to classify virtual assets and tokens to streamline the sector. There is still ambiguity on the roles played by the Commodities Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
While CFTC’s jurisdiction covers bitcoin and listed bitcoin futures on regulated interest exchanges, SEC is regulating all securities and derivatives. The latter is now keen on bringing initial coin offerings (ICOs) into its fold. That meant it is subject to vigorous tactics with significant potentials of dragging their values. The securities regulator also sought to know how enterprise has issued tokens and involved in marketing them.
CMT Digital’s Colleen Sullivan, who was a speaker, reacted quickly to address the issue. She told the audience that every security should be traded on registered exchanges in the Americas. She pointed out that the securities regulator weighed in on digital currencies in July last year. At that point in time, it released an investigative report claiming that some digital coins fell under the securities category. Though there are more than 1,500 cryptocurrencies, none of them are traded in the way SEC standards prescribed.
On the other hand, Blockchain counsel Gray Sasser believes that the cryptocurrency industry is surrounded by ambiguity. He said that though he has been participating in a number of panels, his first answer to most of the questions is that he does not know. He said it in a lighter vein. However, he thinks that the SEC is clear in indicating where digital tokens should fall. But they failed to offer distributors the right path.
The influx of Institutional Capital
In her conclusion, Sullivan was clear about two things. One is that the cryptocurrency market needs solid regulation. The second is that she sees the entry of institutional capital into the digital coin market. This should finally lead to a renowned broker’s presence in the sector. As a result, it would provide stability and efficiency.
She explained further that “I think as the regulatory environment becomes more clear in the next 12 months, we’re going to see a lot more capital. Right now, most changes in the industry have applied to retail.” That is an indication that the regulated market would attract more capital.…