15/05/2018: Biggest Stories in the Cryptosphere
By BlockEx
- EU and US Lawmakers Encourage “Sandbox” Approach to Blockchain Regulation
The issue of blockchain regulation has been a hot topic at Consensus 2018. EU and US lawmakers had a panel discussion on the matter. U.S. House Representative David Schweikert said that the lack of regulatory clarity in the US, which he described as a “fog”, may actually be beneficial, as premature regulation could stifle innovation. Meanwhile Eva Kaili, MEP, decried many in the European Parliament’s lack of knowledge on blockchain, and discussed how hard it would be to educate them all. They agreed that regulatory sandboxes could offer the best approach for blockchain innovation in the current climate. Kaili remained optimistic that “in the next few years we’ll have harmonization, sandboxes and regulation.”
2. Will Self-Governance Clean Up the Regulatory “Mess”?
Another solution suggested to the regulatory grey area that blockchain innovations find themselves in is self-governance. Gary DeWaal, a legal expert who focuses on financial services, referred to the current state of regulation as “an absolute mess.” He also cast doubt on regulators like the CTFC to regulate this area, noting budget cuts. He said the Self-Regulatory Organisations (SRO) could create regulations that work, that can then be adopted by regulators. By encouraging compliance to the rules of SROs, it can help protect the industry from falling foul of the law.
3. US Must Regulate Blockchain Enterprises, Or Risk Losing Them
Meanwhile, another panel at Consensus 2018 said that the lack of regulatory clarity in the US may see blockchain startups seeking friendlier shores. Countries such as Malta have tried to create crypto-friendly regulations to tempt companies to do just this. ARK Invest’s CEO and CIO Catherine Wood complained that “We’re going to see regulation mainly by prosecution.” However, Future/Perfect Ventures founder and managing partner Jalak Jobanputra said that agencies like SEC and CTFC could only do so much, and technological solutions would be needed too.
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