Lack Of Regulation Clarity Inhibiting Crypto Market Growth, Says Jeremy Allaire

Jan 12, 2019 at 15:30 Update Date :Jan 12, 2019 at 15:30 UTC

Jeremy Allaire, the CEO of Circle, crypto finance company backed by big finance houses like Goldman Sachs, Bitmain, Baidu, and IDG Capital among others, said that the lack of clarity over the issue of defining various crypto assets by the United States regulatory watchdog, the Securities and Exchanges Commission (SEC).

In an Ask Me Anything thread on Reddit, which he initiated along with Circle co-founder Sean Neville and a few representatives of the firm, Jeremy answered to question by stating that in a market with so many cryptocurrencies and crypto commodities in the market, there was a need for more specifics concerning their securities. He also stated that this could potentially unlock a lot of market activity, in turn prompting the future growth of crypto-based securities market.

Amid further discussions on the topics of regulations, Allaire also stated Circle’s ideology that is of creating a different tax block for crypto-to-crypto transactions- noting that France has edged out fellow nations in considering to bring in a prospective bill, in order to reduce crypto-to-crypto taxation. However, according to recent reports, the bill has been struck with a setback in the French parliament.

Another topic that was brought up on the thread was the discussion of privacy-focused altcoins such as Monero (XMR), with redittors quick to inquire about Circle’s approach to the critical spotlight by regulators and law-enforcement on the opaque nature of operations of blockchains.

Robert Bench, chief compliance officer and head regulatory counsel of Circle, a part of the AMA discussion thread, has said that if the need is, Circle may make use of privacy coins to account for its customer’s risk assessments.

Robert also added that tackling privacy concerns and the issue of money laundering is high on regulator’s agenda and said that he wouldn’t underestimate the ability of smart industry and government participants to find solutions to provide transparency on these coins.

Allaire had last month predicted that Bitcoin (BTC) will rise in value eventually, more than what it’s worth at the moment, but stopped just short of stating Bitcoin dominance, saying:

“I do not think its winner-take-all. We have the phrase ‘the tokenization of everything,’ and we think cryptographic tokens are going to represent every form of financial asset in the world. There will be millions of them in years.”

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