Ethereum’s Co-Founder Joseph Lubin insists that cryptocurrencies should embrace financial regulators pointing out that it is vital not to halt innovation. Lubin welcomes the idea of regulation in the cryptocurrency ecosystem. He made this suggestion during the Paris Viva Tech Summit, and it appears his statements had an impact in crypto markets as digital currency prices have started to rally again.
If Lubin doesn’t see anything wrong with regulation, it is safe to say the cryptocurrency community shouldn’t be worried as well. The critical thing to note is that the control of the digital currency industry doesn’t appear to hinder innovation, which explains why they haven’t set some blanket policy in the market or ban like is the case in China. Policymakers want to strike a balance.
Consumer Token vs. Security
Regulators haven’t provided a precise definition of what a security token is and isn’t. Perhaps they should find from Lubin or other digital currency experts regarding what qualifies as security. In order for the digital currency market to operate as intended, there should be a difference between what security tokens are and what they are not. Note that despite the fact that Jay Clayton, Chairman of the SEC said he hadn’t seen a digital token that is not a security, he might just not be searching for the right characteristics of what is security.
Lubin said as far as regulation goes on, he is honed in on the securities law. He said they should be able to issue security and utility digital tokens.
While experts like Lubin and Vitalik Buterin have insisted that their attention isn’t on trading, the former didn’t shy away from answering questions about the probe into price manipulation by the authorities. Lubin cited other explanations for the swings in the price of Bitcoin.
Blockchain conferences are unfolding quickly and furiously this year, with the next conference, dubbed Blockchain for Social Impact Coalition. This event will be held in Washington and is scheduled for June 1.