Ethereum Co-Founder Lubin: Cryptocurrencies Should Stay ‘Unfettered” from Regulations
It’s a tricky balance, but Ethereum Co-Founder Joseph Lubin believes the cryptocurrency market should embrace regulators though he also points out it’s vital not to stifle innovation.
Lubin, who is at the helm of 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 Paris’ Viva Tech summit. Perhaps his remarks added some relief to the market, as the leading cryptocurrencies are currently trading in the green again.
If Lubin isn’t worried about regulation, it’s pretty safe to say that the balance of the cryptocurrency community shouldn’t be, either. The important thing to note is that regulators don’t appear to be turning a blind eye to innovation, either, which may explain why they haven’t responded to the market with some blanket policy or ban like China. Policymakers too are looking to strike a balance, and perhaps that’s a function of blockchain veterans like Lubin making the vision of decentralization clear.
Consumer Token vs. Security
Regulators have yet to provide a clear-cut definition of what comprises a security token and what does not. Perhaps they should ask Lubin if they haven’t already. In order for the market to operate as it was intended, there needs to be a distinction between what are security tokens and what is not. Despite the fact that US SEC Chairman Jay Clayton said he has yet to see a token that’s not a security, he may just not be looking for the right characteristics.
Lubin said that as far as regulation is concerned, he’s honed in on securities laws. He said they are able to issue both security and utility tokens.
While programmers like Vitalik Buterin and Lubin have made it clear that their attention is not on trading, the ConsenSys chief didn’t shy away from questions about the US probe into possible price manipulation. Lubin pointed to other explanations for the dramatic swings in the bitcoin price.
The blockchain conferences are unfolding fast and furious this year, with the next one, dubbed the Blockchain for Social Impact Coalition Conference scheduled for June 1 in Washington, D.C.
Featured image from Flickr/@thelastminute.