CEO and co-founder of Goldman Sachs-backed crypto finance firm Circle has aforesaid that the regulative hurdle faced by crypto assets these days is mainly due to the lack of clarity from the U.S. securities regulator over a way to how define crypto assets.
Jeremy Allaire added his remarks in an AMA ‘reddit thread‘ he initiated on 10 Jan along side Circle’s co-founder Sean Neville and other representatives from the firm.
In response to an issue over Circle’s efforts to coach regulators like the SEC [Securities and Exchange Commission] about the crypto ecosystem moreover as specific challenges the corporate faces, Allaire added:
“The biggest and most immediate regulative hurdle we face is the lack of specific steering from the SEC on a way to classify crypto assets. We believe several are clearly currencies and commodities, and there has to be a lot more specificity on what are actually securities. This could unlock tons of market activity, and additionally clearly alter the expansion of a marketplace for crypto-based securities.”
In response to other regulation-focused queries, Allaire added that Circle’s belief that tax treatment ought to be differentiated for crypto-to-crypto transactions — noting that France has inched above other countries in following a statutory change to this end.
As reported earlier, France’s prospective bill to ease [crypto-crypto] taxation has notably recently received a reversal in parliament.
Other topics that gained traction on the thread were discussions of privacy-focused altcoins like Monero [XMR], with several redditors keen to urge insights into Circle’s approach to handling scrutiny from regulators and enforcement into so-dubbed opaque blockchains.
Robert Bench, chief compliance officer and head regulatory counsel for Circle, outlined that while no specific legislation has nevertheless been drafted within the U.S. in regard to privacy coins, Circle might take use of such assets under consideration for its customers’ risk assessments.
Noting that confronting privacy and AML [anti-money-laundering] compliance is high on regulators’ agenda, he stated that he “wouldn’t underestimate the flexibility of good industry and govt. participants to search out solutions to ‘supply transparency‘ on these coins [in the future].”
As reported , Allaire has recently foretold that Bitcoin [BTC] can eventually be valued at a good deal more than its present worth, however stopped short of Bitcoin maximalism, stating:
“I don’t assume it’s winner-take-all. We’ve got the phrase ‘the tokenization of everything,’ and we think crypto tokens are about to represent almost all kinds of monetary assets within the upcoming days. There’ll be millions of them in years.”