The CEO and co-founder of Circle, a crypto finance company backed by Goldman Sachs stated that absence of clarity from the United States securities regulator on the way to define different crypto assets is the biggest regulatory challenge facing crypto today.
Jeremy Allaire gave his comments following his initiation of an AMA Reddit thread on Jan. 10 alongside Sean Neville, the Circle co-founder and other representatives from the industry.
While asked about the efforts Circle has put in enlightening regulators such as the Securities and Exchange Commission (SEC) about the crypto industry and also particular problems the company is battling with, Allaire responded that:
“The biggest and most immediate regulatory hurdle we face is the lack of specific guidance from the SEC on how to classify various crypto assets. We believe many are clearly currencies and commodities, and there needs to be more specificity on what are really securities. This can unlock a lot of market activity, and also clearly enable the growth of a market for crypto-based securities.”
Also, as Allaire was responding to other questions that are focused on regulation, he made mention that according to Circle, it will be better for tax treatment to be differentiated for crypto-to-crypto transactions stressing that France has gone far ahead of other nations in seeking a statutory amendment on this regard.
According to the report, the prospective bill passed by France to simplify crypto-crypto taxation has of recent notably hit an obstacle in parliament.
The chief compliance officer and head regulatory counsel for Circle, Robert Bench explained that the use of privacy coins may be taken into account by Circle for its customers’ risk assessments considering the fact that there had been no particular regulation designed yet in the U.S. in regards to the privacy coins.
Stating that handling the compliance of privacy and anti-money-laundering (AML) is utmost on the agenda of the regulators, he continued that he “wouldn’t underestimate the ability of smart industry and government participants to find solutions to provide transparency on these coins [in the future].”
Recently, Allaire has reportedly made predictions that Bitcoin (BTC) will at the end be valued a great deal more than it is presently, however, didn’t comment on Bitcoin maximalism, saying:
“I do not think it’s winner-take-all. We have the phrase ‘the tokenization of everything,’ and we think cryptographic tokens are going to represent every form of financial asset in the world. There will be millions of them in years.”