In a recent interview in London, Jeremy Allaire, the CEO of Circle, which is the cryptocurrency startup backed by Goldman Sachs, spoke about how a universal regulations framework is necessary for the cryptocurrency industry to flourish truly. In the Reuters interview, also elaborated about the level and quality of regulation that is needed by the industry to ensure continued exponential growth and said that
“there needs to be normalization at the G20 level of critical crypto-related regulatory matters.”
He also said that the actions recently taken by the France-based Financial Action Task Force (FATF) in order to define specific laws regarding cryptocurrencies, and enforce stricter regulations for crypto exchanges were a great start, but a lot more involvement and dedication regarding that is required and soon. Since a considerable amount of fraud is involved in ICOs and token issuances, he said,
“When it comes to token offerings, how should they be treated? Which token offerings are securities, which are not? The trading venues – are they like spot commodity markets that need to have rules in place around market manipulation?”
The same thing has been reiterated umpteen number of times by the experts and leaders of the industry, all of also believe, that for the crypto market, a global regulation will be the next evolutionary step.
Former chairman of the U.S. Commodity Futures Trading Commission (CFTC), Gary Gensler, recently echoed a similar sentiment to that of Allaire and said that blockchain and DLT technology “has a real chance to be a catalyst for change in the world of finance,” provided that global regulators realize the immediate need to “guard against illicit activity, and…need to protect investors.”
Allaire’s comments come amidst a growing movement from global regulators to begin cracking down on illicit cryptocurrency operations and fraudulent token offerings being offered under deceptive or untruthful claims.
However, it will be a long journey ahead along the road to establishing a universal cohesive regulatory framework for crypto, though the need to start taking severe measure, in that regard is of utmost importance.