What's your take on Gary Gensler is ruling or, you know, his intent with the
settlement with crackin? Yeah, I mean, I think that first and
foremost, we're seeing all these those regulatory actions being taken against
some of the more prominent players in the US market.
And in some regards as basically drives the investors and drives the public from
operating on in the U.S. market and drives them outside.
Right. Basically, offshore entities, as we've
seen already, was RTX those and that these are less secure or they're less
basically susceptible to U.S. regulators enforcing consumer
protections. Doesn't it make sense, though, that
staking as a service, especially offered by an exchange that seems like a
security? I think it's difficult to basically
assess what exactly it is, right? And if we will take a step back, I think
that in many regards we sort of operating from a rule book that is
suited for horses, that now we have cars.
Right. And we basically need to change the rule
book because, you know, it's taking in some regards.
It's sort of like installing solar panels and contribute electricity to the
grid and then getting something in return.
And I'm not sure if it's exactly security or not.
Right. I think there should be certain
protections. Right?
There should be certain disclosures. Now, the main issue is that the U.S.
regulators are not progressing fast enough and providing the guidance to the
industry of how exactly we should deliver those services.
I'd like regulators abroad that actually moving in a very rapid pace in terms of
providing guidance and regulatory clarity on what each one of those
activities actually means and how we should protect consumers.
How big of a deal this is this for a period in particular, given the move to
the proof of state model, does it significantly impact the ability for it
to scale when so many exchanges are facing the threat of the FTSE?
It's a good question, but I think that overall, as we've seen in crypto for the
last couple of years. Right.
It's a very global system. Right.
So if something is actually bent in China or something is actually been the
United States, the activity very quickly moves to different jurisdictions.
Right. When there is clarity, it's allowed.
So maybe there is a temporary setback for the stability, which I'm not sure is
actually we are seeing it right now. But I'm pretty confident that if this
stability is actually exists, it will basically be rebalanced offshore in some
jurisdictions like Europe, a park where this activity is clear and it's allowed.
I guess one other question I have is how much does it matter that Gary Gensler is
coming down so hard? You mentioned it.
You're not sure if it's staking is a security or not.
But Gary Gensler is pretty clear when he says that it is.
We're going to watch these legal battles start to play out, but that will take a
long time. Do you think that the companies that are
operating the space have enough dry powder to make it through that time on
to the other end of this fight where they may or may not win?
I think that the overall the losers in this fight is, first of all, the
American public and the American economy.
Right. Because all those companies and all
those investors eventually has the opportunity to go and operate in
jurisdictions like Singapore, like Australia, like Europe, like like a park
like the UAE. And they all basically pushing ahead
with providing a pretty warm regulatory infrastructure.
Right. For those companies to operate.
Right. Effectively, what he does, it sets the
U.S. infrastructure for this transformational
wave of using digital assets, of using the crypto rails.
It's setting it back. Right.
Because companies will operate abroad. Well, but what's the alternative?
Especially after the collapse of FTSE X and Voyager and Genesis and you name it.
I mean, investors are getting burned left and right and not just for a few
hundred thousand or a few million or it's like billions of dollars that are
just being eviscerated. So we can't just set up a friendly
regulatory structure and continue to see these kind of losses.
Yeah, I'm not sure that I'm advocating for not doing anything or for a friendly
over over a friendly regulatory structure.
I think that what needs to happen is basically not to to basically structure
everything is a security. Right.
There are two frameworks, right. Some frameworks that as we've seen in
Singapore and Australia, right. Where there is one government agency
that basically takes ownership, they land the topic, they engage with the
industry. They decide whether the appropriate
consumer protection measures and they basically move forward with that.
There is another model, for example, in the UAE, which they actually set up, a
dedicated agency that regulates crypto. Right.
And they think both of those models work.
Right. What is happening right now is sort of
unclear and it seems to be much more political.
Right. And in the aftermath of that, and
instead of constructive measures.