Geofencing Crypto Assets Out Of The US Is Bad Policy
I wrote this tweetstorm on Friday when I read the blog post about Poloniex’s decision to geofence certain assets away from US customers, driven by the SEC’s recently published framework for digital assets.Geofencing Crypto Assets Out Of The US Is Bad Policy
Unfortunately so true. That combined with the bifurcation in the android ecosystem which will now inevitably happen we really shot ourselves in the foot.
The US is being disadvantaged on two fronts:1/ US companies aren’t able to flex their muscles totally as they will always be wondering “what’s the SEC thinking”.2/ US consumers are being deprived from investment and participation opportunities (out of fear from the SEC, companies aren’t allowing US consumers to participate in token offerings)And you can add Canada to most of these scenarios.
I have always enjoyed reading you. Regulation always seems like an impediment, especially from the company’s and entrepreneur’s perspective. But regulations in the end are to protect the end user. In the event that they contribute to or create healthy markets they ultimately can benefit all market players. Although STO’s May replace IPO’s, the self regulation of this marketplace would totally self destruct, and rather quickly, if not moderated by the government in regards to guiding principles and oversight/enforcement. The greater fools theory is not sustainable here.
Thank you Alex.Of course we agree that regulation is in place to protect consumers. But currently, the regulators want to force-fit everything into the existing securities framework, instead of working on some innovative interpretation that would still preserve this protection, while at the same allowing companies to innovate with token models. Actually, I posted something new on this, today:http://startupmanagement.or…Btw-, I didn’t comment on self-regulation. It’s not ideal, I agree.
Getting adversarial with the SEC is not going to work. Just ask Elon Musk! I loved your post and am going to comment on that separately. Here’s the good news about regulators. As NASDAQ and IBM and JP Morgan and other big financial players embrace the blockchain etc., they are going to sway the FEC and the little companies are going to ride on their coattails to regulatory success.Here’s a more productive task than the little guy fighting the SEC: Have investors band together to self-regulate the industry so that the SEC has a more favorable impression of the market. When you say “not ideal”, would you agree that that phrase is a gross understatement.Look what we can do first as an industry to earn the trust of outsiders. That is the mature and effective course of action.
Whatever – another sky is falling doomsday scenario if the SEC doesn’t sidestep their primary regulatory obligations – I can see the huge exodus of female tech talent moving to Korea now !
What serious, comprehensive proposals are coming from the industry? This is definitely a disaster in the making for the US, but the SEC seems to be doing what they can with a really tough situation. Maybe there is more happening than I see, but industry-driven leadership seems to be missing. And relying on congress to figure it out seems like an even worse idea, as is evidenced by the Token Taxonomy Act.
And this lack of leadership starts with the investors, as they have the resources (but apparently not the individual or collective will) to make it happen.
This feels like an opportunity for someone.
This is not ‘policy’. This is panic.