SEC Regulations Would Drive Innovation Away From US To Asia: Businessman

The harsh cryptocurrency regulations by the Securities and Exchange Commission (SEC) are in the latest cryptocurrency news. According to a prominent businessman, the SEC regulations are about to drive away the innovation from the United States to Asia and a new climate.

If you are unfamiliar with them, it is safe to say that one of the leading crypto exchanges in the world Poloniex (owned by Circle) announced geofencing of nine assets on its platform recently. This decision has led many to take a cautionary step fearing the Securities and Exchange Commission (SEC) and its retribution.

We are talking about Fred Wilson, who is the co-founder of Union Square Ventures. He recently voiced his opinion towards the SEC regulations and the body’s ruling to delist coins in the US cryptocurrency exchanges, labeling it as “very damaging.”

As many best cryptocurrency news sites show, Wilson believed that hostile policies would eventually drive away innovation from Silicon Valley which according to him is the “global epicenter of tech” to Asian countries. He tweeted pointing out to the SEC regulations:

“In 5-10 years when we look back and consider why the next big tech sector centered itself in Asia and not in the US, it will be the SEC’s unwillingness to create new rules to regulate new assets that will be the cause.”

https://twitter.com/fredwilson/status/1132045551594352646

He cited Coinbase as an example and stated that “most trusted/compliant/secure/safe” cryptocurrency exchanges were based in the United States. So, according to him, driving trading or liquidity to Asia is “detrimental to safety and security.”

An attorney at Byrne & Storm named Preston Byrne responded to the tweet concerning the SEC regulations, stating that “alleged misconduct” in Asia would be harmful to the entire cryptocurrency space. He also emphasized that one of the major threats to Bitcoin adoption was the “bad actors” who need to be properly identified and eliminated.

“95% of trading volume is faked. The Bitfinex/Tether saga is insane and only just getting started. If crypto is going to be adopted, we need to have more trust in our trading venues. That requires close supervision of trading venues and markets.”

Ari David Paul, the founder of BlockTower Capital, was also featured in the altcoin news for reacting to the post and stating:

“Hopefully we’re not headed toward a world where voluntary commerce can be stamped out globally. So for a global asset, this will always be an issue. Fortunately, you don’t need to care. $1b in CME future volume is real and traceable. Manipulation is temporary by nature.”