- Posted by TokenDashboard
- On November 6, 2018
In the world of cryptocurrency, one of the most pressing questions for executives and investors is how regulatory authorities will treat digital assets. The lack of regulations does not bring anything good for consumers and entrepreneurs, so the goal is to provide the best laws for both sides.
CoinAgenda Global Bitcoin and Digital Currency Investors Conference were held in Las Vegas on October 24 this year and gathered crypto investors and entrepreneurs such as Bruce Fenton.
Mr. Bruce Fenton is an experienced economic advisor and the founder of Atlantic Financial, the former Executive Director and a current board member of the Bitcoin Foundation. At this conference, he stated that security tokens don’t need extra regulation from the SEC, because they have always been legal.
No Need for Extra Regulation
CoinAgenda event focused on initial coin offerings (ICOs), digital currency funds, family offices, startups, and security tokens. SEC has created a distinction between security and utility tokens, so entrepreneurs have enough space to figure out how to comply with the extra regulation involved in launching a security token.
Fenton said that these types of regulations such as KYC/AML are simply made up by “jackasses” to make people jump through hoops. He added that there is no reason for any other regulation because, since their launching, security tokens have been operating legally. They have always been legal because they’re no different from any other kind of security. He told the audience that there is no such thing as illegal security because people used to trade securities under a tree in the 1930s.
Bruce also stated that the system of trading securities dates back to 1602, without all extra rules and laws. As long as companies follow the rules on how securities should be issued, they should be able to freely issue security tokens, Fenton said.
Blockchain has a bright future
Bruce Fenton believes that blockchain technology can improve many industries and predicts a bright future despite regulation problems. Referring to the platforms as Youtube have created for content, Fenton told the audience at CoinAgenda conference that security tokens can create long-tails for capital markets. He compared that process to the way Youtube allows smaller creators to gain audiences that generate over time, with the hope that blockchain can help local businesses gain funding.
Fenton also added that with security tokens people can buy equity in their local sandwich shop and because of that, a small business can have a better chance at securing longer-term income.