Crypto czar thinks startups should ask for permission, not forgiveness
While the cryptocurrency community continues to grow, there is clearly a global issue regarding the overall volatility of cryptocurrency markets that has prevented institutional money from flowing in, which many believe to be the catalyst for the next bull run. Some people have pointed out that stablecoins might be able to solve this issue, since they are pegged to actual assets and/or currencies.
As a result, many have put forth the theory that a stablecoin craze might be arriving, since initial coin offerings (ICOs) have been underperforming recently. The Securities Exchange Commission (SEC) of the United States has been tightlipped about cryptocurrency regulation, but apparently, even stablecoins might come with their own concerns, according to SEC advisor for digital assets Valerie Szczepanik. She also elaborated that she believes blockchain startups should be more concerned about being “in step” with regulation, even if there is yet to be a clear framework.
The statement was made at the South By Southwest (SXSW) conference in Austin, which is an annual conglomerate of media in general, including high-profile entertainers, media influencers, actors, comedians, musicians, and much more. The “festival” has been active for over three decades and always occurs in March in Austin, Texas. Szcepanik was particularly concerned about the expectation of profit.
Specifically, she stated, when elaborating about the expectation of a profit, whether “holding a profit or guaranteeing a profit,” that this could “raise issues under securities laws,” Decrypt reported. She seemed to indicate that crypto startups should ask for permission rather than forgiveness from the SEC.
There continues to be a divide between the SEC and various blockchain startups. Hester Peirce, nicknamed the “crypto mom” because of her pro-crypto stance with regards to a crypto exchange traded fund (ETF) last year, has stated that the government in general moves slowly, and that “‘fast’ is a relative term”, in an interview with Breakermag.
Although she might have pointed out the issues with stablecoins in particular, that did not mean that Valerie Szczepanik was pessimistic about the entire sector. Szczepanik is the United States first advisor for digital assets, which has earned her several nicknames, including “Crypto Czar” and “Cryptocurrency Chief.” She seemed to repeatedly state that startups should be working closer together with the SEC, stating that “it will take people walking with the regulators” for the “hope to smell the crypto spring in the air.” For those who might be unaware of the reference, many have referred to the current state of the cryptocurrency markets as a “Crypto Winter,” since cryptocurrencies like Bitcoin Core (BTC) have plummeted from their all-time highs.
Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as SegWitCoin BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins. Altcoins, which value privacy, anonymity, and distance from government intervention, are referenced as dark coins.
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