Category Archives: Caitlin Long

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Crypto Pioneers Attack SEC over Regulation in Joint Letter

A group of crypto pioneers has laid out concerns about the regulation of cryptocurrencies to the US Securities and Exchanges Commission (SEC), outlining caution that further regulations passed could be detrimental to the industry as a whole.

The news of this letter to the SEC follows another written last week by the US Congress in which they asked for more clarity on cryptocurrency security. Congress also said that they believed that cryptocurrency important for many sectors of the US economy and that the SEC’s view that all cryptos are securities, besides Bitcoin and Ethereum, is leading to an exodus of crypto and blockchain companies and talent from the United States.

This latest letter from the industry itself against intrusive regulation is sure to put added pressure on the SEC to find a solution which is suitable to all. A major warning to the SEC was about the very nature of cryptocurrency which is that it was designed to be held by a third party, rather the individual, and any future regulation would need to keep this in mind.

The letter was a crypto who’s who cosignatory document including dotcom veteran Christopher Allen, Bitcoin core developer Bryan Bishop, financial expert Angus Champion de Crespigny, blockchain attorney Gavin Fearey and Caitlin Long, most recently Morgan Stanley’s managing director.

The letter explained that cryptocurrencies shouldn’t be type-cast due to their unique qualities and as such warned that “fitting them into existing market infrastructure introduces risks to investors that would not otherwise exist”.T he letter also warned against “applying rules to digital assets in ways which do not reflect their strengths”.

Earlier in June, SEC Chairman Jay Clayton clarified that the regulators had no intention of changing their traditional regulatory approach. He said:

“We are not going to do any violence to the traditional definition of a security that has worked for a long time. We’ve been doing this a long time. There’s no need to change the definition.”

Clayton was referencing a Supreme Court ruling from 1946 which defines a security as an investment of money in a common enterprise, in which the investor expects profits from others’ efforts. Those in the crypto industry have always maintained that cryptocurrencies, tokens, and ICOs, as assets rather than securities, need further legal definition.

 

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Bitcoin Advocate and Academic Gives ETFs the Thumbs Down

As previously reported by Bitcoin News, the US Securities and Exchange Commission (SEC) has just rejected at least eight proposals for Bitcoin Exchange-Traded Funds (ETFs), but there is one investor who doesn’t see this as a bad thing.

In a recently released video, Bitcoin advocate and tech entrepreneur Andreas Antonopoulos sees Bitcoin ETFs as both an inevitable and potentially destabilizing influence on the cryptocurrency market when they finally get approval.

Andreas M. Antonopoulos is a Greek-British bitcoin advocate. He is a host on the Let’s Talk Bitcoin podcast and a teaching fellow for the M.Sc. Digital Currencies at the University of Nicosia. His concerns are best illustrated by this comment made on the video.

“ETFs fundamentally violate the underlying principle of peer-to-peer money, where each user is not operating through a custodian, but has direct control of their money because they have direct control of their keys.”

Antonopoulos seemingly examines ETFs differently from the majority of market investors who see approval as a kickstart to a sluggish year which will bring in institutional investors and revitalise Bitcoin.  His view is that the market will be manipulated by major market makers as seen in commodity markets, and the investors will lose the right to be heard, arguing:

“We already saw that level of influence during the August 1st fork, user activated software forks, Bitcoin Cash, the scaling debate… Large custodial exchanges had a very strong voice in the ecosystem. They were able to decide if they were going to support or not on behalf of 10 million customers… an ETF will do that and it will do that on an even bigger scale”

Another issue that concerns Antonopoulos is privacy and transparency, suggesting that an ETF may react to regulatory pressure and refuse to adopt privacy measures and create another corporate Bitcoin market. This is a similar view to that held by former Wall Street exec Caitlin Long, who sees a corporate Bitcoin through Wall Street’s entrance into the crypto arena bringing the potential of bad practice to the industry.

Recently, Ethereum co-founder Vitalik Buterin Tweeted out his critique of those focusing too much on ETF approval, pointing out the accessibility of purchasing cryptocurrency should be focused on to promote ”actual adoption.”

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