Crypto Industry Titans Address Concerns, Future Opportunities Amid SEC Onslaught

Zinger Key Points
  • "We approach the current regulatory issues with caution and seriousness, Gracy Chen says.
  • Regulators must embrace technology and provide guidance on how to deal in digital assets, Jai Waterman says.

Coinbase COIN and Binance BNB/USD are being sued for dealing in unregistered securities.

The lawsuits, brought on by the U.S. Securities and Exchange Commission (SEC), add tension to an already highly scrutinized market.
Against this backdrop, industry heavyweights have weighed in on the unfolding scenario.

Also Read: OKX Ignites A Financial Inferno: Torches $258M In Tokens

Gracy Chen, Managing Director of Bitget, acknowledges the challenges posed by the recent regulatory crackdown but remains optimistic.

"We approach the current regulatory issues with caution and seriousness, but crises also bring opportunities, and this market is always full of changes," she said.

Chen also noted that favorable policies are emerging in places like Hong Kong, Dubai, and Singapore.

Blockstation CEO Jai Waterman emphasized the importance of integrating stock exchanges with digital assets in the U.S.

"Having Stock Exchanges integrated with digital assets will allow all participants to plug in, have a central limit order book where all the brokers trade digital securities and digital assets is key," Waterman said.

He also stressed the need for regulators to embrace technology and provide guidance for participants to deal in digital assets.

"The regulatory framework is actually pretty clear, as far as I'm concerned, the Securities Act would cover most digital assets because most activities with cryptocurrencies are digital securities," Waterman explained, calling for training and education for regulators to understand the risks associated with digital assets.

Amboss CEO Jesse Shrader also shared his take on the SEC's allegations against Coinbase's staking program.

“What's clear is that staking as service, Ethereum ETH/USD in general, and the proof of stake model is at best risky from a regulatory standpoint,” Shrader remarked.

He mentioned Bitcoin's BTC/USD being designated as a commodity by the CFTC and highlighted the potential of the Lightning Network as a self-sustaining financial ecosystem.

“The Lightning Network is quickly becoming a self-sustaining financial ecosystem because it solves a real payments problem while creating yield opportunities,” he added.

Arcade co-founder Robert Masiello called for clarity in the U.S. stance on cryptocurrencies.

“I think the U.S. needs to decide publicly if it’s anti-crypto or not. If it is, then it’s obvious that US companies and developers will go elsewhere globally. That’s a large tax-paying base that will go somewhere else,” Masiello opined.

He also emphasized the relevance of the U.S. dollar as a gateway into the global economic system.

Read Next: Crypto Can't Dodge The Law With Fancy Talk, Says SEC's Gary Gensler

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