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It's a delicate balance, but Ethereum co-founder, Joseph Lubin, believes that the cryptocurrency market should include regulators. indispensable for not smothering innovation.
Lubin, who heads ConsenSys, welcomes regulators into the cryptocurrency space both in the United States and in other parts of the world. He made the comments to Bloomberg at the Viva Tech summit in Paris. Perhaps his remarks have added some relief to the market, as the main cryptocurrencies are currently trading green again.
"It's really helpful for regulators in this space to look at some of the complicated practices in much less regulated situations, so whether it's cryptocurrency, and cryptocurrencies – in my opinion – should remain free because they have huge use cases, or if it's tokens representing securities or other assets, and how that's based on the law of securities, see the regulators, "said Lubin.
If Lubin does not care about the regulations, it is safe to say that the balance of the cryptocurrency community should not be either. The important thing to note is that regulators also do not seem to turn a blind eye to innovation, which may explain why they have not responded to the market with a general policy or ban like China. Policy makers are also looking for a balance, and it may be a function of blockchain veterans like Lubin to make the vision of decentralization clearer.
Consumer vs. Voucher security
Regulators still need to provide a clear definition of what constitutes a security token and what is not. Maybe they should ask Lubin if they have not already done so. For the market to work as intended, it is necessary to distinguish between security tokens and those that are not. Despite the fact that US SEC chairman Jay Clayton said he had not yet seen a token that is not a guarantee, he might not be looking for the right features.
Lubin said that with respect to regulation, he has tweaked the securities laws. He said that they are able to issue both security and utility tokens.
"We are seeking very clear definitions and helping regulators around the world to understand that these networking models are benefiting from membership tokens or tokens representing the consumption of scarce resources. And as long as these projects sell tokens to token buyers who use the token and that they do not sell in large quantities to speculators or hope to earn money by the actions of others, that is a proper definition of a consumer token, "said Lubin, who added that" is absolutely what the ether is "and described it as a" crypto fuel. "
Volatility of the market
While programmers like Vitalik Buterin and Lubin made it clear that their attention was not focused on trading, the ConsenSys chief did not hesitate to answer questions about the US probe in a possible manipulation prices. Lubin pointed out other explanations for the spectacular fluctuations in the price of bitcoin.
"It could be simply because the total value of these monetary bases is small and it is a very young technology and a lot of news is coming out.But the traders are sophisticated and the traders will do what they want. They can do, "he told Bloomberg
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Decentralized World
Blockchain conferences unfold quickly and furiously this year, with the next, called the Blockchain for Social Impact Coalition Conference scheduled for June 1 in Washington, DC
Featured image from Flickr / @ thelastminute.
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