Ethereum Foundation Advisor-SEC Don’t Possess Basic Understanding about Crypto’s Core NatureMay 26, 2018
In an interview with CNBC in May 18, William Mougayar, advisor to Ethereum Foundation and author of “The Business Blockchain, said that regulators don’t possess foundational understanding on cryptocurrencies. Talking with CNBC, he explained that in trying to control digital currencies, United States Securities and Exchange Commission or SEC lacks understanding of the core nature of industry trying to integrate an approach which is one size fits all.
“The SEC is as yet endeavoring to teach themselves, not simply educate the general population. Right now they are as yet pondering with it and the box they actually play in is that they witness all these digital money or cryptocurency as security. However, as a general rule, not all things are security. They need everything to play in that box.
Responding to an inquiry concerning whether the SEC needs to keep digital currencies as security, particularly so they can control it, Mougayar responded. He stated that this is precisely their container, they play in. They view everything as a security and they are attempting to fit one square peg to a round gap, yet not all things are security at this moment.
As to CEO Jack Dorsey’s current proclamation that Bitcoin will be the local currency of internet, Mougayar revealed that he considers Bitcoin or BTC one of the local monetary standards, however ” according to him, it won’t be the just the only one as there are still others.
Mougayar expressed that Ethereum or ETH will unquestionably overtake BTC in light of the fact that it has the biggest system of new businesses or start-ups and developers, funding, and a wide range of support circumventing it.
Mougayar additionally clarified that as of now, cyptocurrencies tend to be underused in their ability as utilities with genuine use cases, where they will serve real needs and purposes and not just speculatory instruments. He brought up that 53 % of Ethereum exchanges are now on real smart contracts. As indicated by Mougayar this demonstrates it is not only as currency but also as a utility.
Just recently, Office of Investor Education and Advocacy at SEC launched a fake Initial Coin Offering or (ICO) site, the objective of which is to expand consciousness of the common warning signs of scam Initial Coin Offerings and to also promote better investor education and training. As indicated by the SEC Chairman Jay Clayton, regulators fully support adoption of latest technological advancements, yet it likewise encourages those investors to teach themselves and comprehend what deceitful offers really look like.