According to William Mougayar, the financial regulators have no fundamental understanding of cryptocurrencies.
Author of the book “The Business Blockchain” and Ethereum Foundation advisor, William Mougayar, said that the SEC lacks the fundamental knowledge of cryptocurrencies during an interview with CNBC on the 18th of May.
Lack of Fundamental Understanding
During his interview with CNBC, Mougayar said that the Securities and Exchange Commission doesn’t have the fundamental understanding of cryptocurrencies and this is obvious from their attempt to apply the same rules for securities on cryptocurrencies.
In his words:
“The SEC still doesn’t understand what cryptocurrencies are. They haven’t fully educated themselves. They should focus on educating themselves instead of the public. Presently, they are just struggling with it and they see cryptocurrencies as securities. In reality, however, not everything is a security.”
In response to a question about the SEC’s aim for classifying cryptocurrencies as securities, Mougayar said:
“The only reason why they want to classify cryptocurrencies as securities is so that they can regulate it. That’s the box the SEC plays in. They want to force a square peg through a round hole.”
When asked if he agreed with the comment of the CEO of Twitter about Bitcoin becoming the new native currency online, he said that he agreed that Bitcoin will be a native currency but it would not be the only one.
He also said that Ether will eventually overtake Bitcoin because of its diverse economic system. He said that cryptocurrencies haven’t reached their full potential and are currently underused in terms of the application to real-world cases. He believes that they would reach their potential when they are used to solve real problems and not just used as speculatory instruments.
He noted that up to 53% of the transactions carried out on the Ethereum network are on smart contracts. That’s to say Ethereum is more than a currency and this is why many venture companies are paying more attention to Ethereum.