- Former CFTC commissioner explains why the crypto industry is not pleased with the SEC.
- Quinten believes the crypto industry needs rules that fit its technology and promotes reaching its full potential.
- Not any regulation is bad for crypto, the right legislation will promote integrity, said Quinten.
Brian Quinten, former Commodity Futures Trading Commission (CFTC) commissioner speaking in an interview at Mainnet 2022 expounded reasons as to why the crypto industry is not pleased with regulations set by the Security Exchange Commission (SEC).
The commissioner who now works as an advisory partner on the crypto team at venture capital firm Andreessen Horowitz revealed that the regulations made by the SEC do not serve the purpose.
Elaborating more on this, Quinten said:
I think what the crypto ecosystem wants is rules that fit its technology, that is fit for purpose, that allow for the innovation actually to reach its full potential. You’re not getting that out of the SEC
Notably, Quinten compared his contribution to the industry as a commissioner to what is happening at present.
During Quinten’s tenure at the CFTC, he said that he oversaw the listing of Bitcoin futures contracts in the U.S. and the creation of tokenized commodities, among other crypto-specific developments, whereas now, he raises concerns about calling crypto security.
According to Quinten what worries him most is that when crypto falls in the category of security it would mean that there’s a central issuer, which would be required to send proxy statements to everyone that holds a given token.
Moreover, he stated:
If the SEC was serious, it could do things that allowed for a kind of securities-like regulatory structure to exist, without threatening the entire ecosystem.
Focussing on the rigidness of the SEC in terms of how it dealt with the crypto industry, Quinten said that the only way to rectify the problem is by educating elected officials on the potential benefits of a better-regulated crypto space since the congress has the power to bring about a new framework.
However, he debunked the notion that many had; any form of regulation was bad for crypto. Furthermore, he said that if they have well-tailored, appropriately-calibrated legislation, the ultimate result could be profitable liquid markets with very strong integrity.
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