Joshua Ashley Klayman, head of Morrison & Foerster’s Blockchain & Smart Contracts Group, addressed the concerns around the SEC’s new regulations on cryptocurrency in the Bank Innovation article “Which Regulator is Next after SEC Eyes ICOs?”
“There’s a lot of concerns [around] if the SEC guidance is going to drive ICOs and innovation out of the U.S.,” she said. “It’s not. The report is basically establishing this is not the Wild West, and if you want to get involved in this space, then there will be regulating.”
Daniel R. Kahan agreed, and believes the regulations could encourage large financial institutions to become involved, thus spurring further ICO innovation. Furthermore, countries like Singapore and Switzerland are likely to enact regulations of their own.
“It’s not like Singapore wants to be the Wild West,” he said. “In fact, they are even more protective of investor rights than the U.S. It’s only a matter of time that they come around.”
On the issue of tokens not tied to financial returns, partner Alfredo B.D. Silva believes they, too, could be subject to certain regulations.
“These app tokens are more like airline miles than securities,” he said. “So just because a token isn’t a security, doesn’t mean that it’s free from complying with consumer protection laws, laws related raffles and lotteries, task implications or for that matter the Commodity Futures Trading Commission (CFTC).”
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