Video Of The Week: The State (or Stalemate) of Regulation?
Given all of the discussion of SEC regulation of the crypto sector on this blog over the last week or two, I thought I’d post a video of a discussion of the topic at last month’s Token Summit in NYC.
Very pertinent topic, of course. It was one of my favorite panels from the event, and the discussion was well rounded, especially about the role of the SEC, and whether / why / when are tokens securities.
There will be regulation in the Facebook-Google sector before long….
One thing about crypto conferences you can count on, it’s the lack of transparency and opinion.This isn’t a panel , it’s a plane of those who have bet their careers on a crypto currency/ crypto assets/crypto securities.Switzerland GDP is 5% of that if the US and hasn’t grown since 2011.The US doesn’t look to Switzerland for regulatory or economic advice.A bet on crypto as a currency is a bet against the US $ – a bet against the your neighbors retirement plan – a bet against your states pension plan – a bet on blood on the street.
.While the panel seems to offer a consensus that ICOs are or should be construed as securities, it is worth noting that the US SEC is way more progressive than other important jurisdictions.India, as an example, is contemplating banning all aspects — criminalizing — of crypto in their recently introduced ” “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019” draft law.India is 20% of the world’s population. China and its Great Firewall of China Tiannamen Square style regulation is not far behind, but for other reasons (censorship).India’s proposed law is driven by frustration with tax evasion, money laundering, and the funding of crime.I wrote about that today: http://themusingsofthebigre…This Indian law provides for ten years of hospitality in a prison of India’s choice for anyone who might “mine, generate, hold, sell, transfer, dispose of, issue or deal in cryptocurrencies.”In India, the entire audience of AVC.com could share a cell. So, thank your lucky stars.Seems like doing an S-1 is a small price to pay to be able to issue tokens in the US.The other thing that was important was the discussion as to the existing framework for exchanges, custody, transfer — all thing that are fully worked out in the securities world.The discussion was amongst folks who have actually dealt with the SEC and go beyond the zealots and brick throwers who suggest ICOs should be unregulated.I was appalled to learn that law firms had venture arms that were investing in client sponsored projects. Conflict of interest, anyone?JLMwww.themusingsofthebigredca…
This period is essential to occur and get worse before this stuff hits the mainstream.I remember the outrange when the first S&P contracts were floated. It was considered treason
Thanks for sharing this video, FredNancy Wojtas was making the best points at this panel and she’s right on; it’s time to open eyes and to acknowledge the obvious: a) Not all tokens are securities. Each and every civilized country in the world already accepted that (and Swiss guy on the panel was a bit too polite on how we look from the outside)B) Howey test is archaic and cannot be used in the era of Blockchain. We will see the KIK-vs-CES arguments on this matter soon, and it seems like KIK is coming well prepared;c) US citizens must be allowed to make their own investment decisions, big or small, like they are happily allowed to buy lottery tickets d) It’s time to turn the trend of best crypto projects moving outside of US, this might become irreversible soon. Remember the 1993 US decision on non-regulating the Internet? That smart move helped companies like Google, Amazon, Facebook and Netflix to emerge in America. This time around we see the opposite mindset and it’s dangerous..