Cryptocurrency executives should work with regulators to develop their potential for the sector rather than be their opponents, a member of digital currency the panel said Monday at Wall Street’s SALT conference.
Kevin O’Leary, who recently invested in WonderFi, a crypto aggregation platform, called on leaders of companies to adopt a friendly tone, saying that the current lack of compliance in the sector is keeping investors at bay.
O’Leary, who invests in entrepreneurs on the business reality TV show “Shark Tank,” was speaking at the SALT event, one of the major hedge fund industry conventions in New York.
Similarly, Jeremy Allaire, chief executive of blockchain-based payments platform Circle, said new products in the space should conform to regulatory models, as having a framework would reduce risk and encourage widespread adoption.
Regulatory concerns are among the biggest hurdles facing the crypto-asset markets. Lawmakers have demanded more power to control trade, but this has not always been welcomed by people in the industry.
The chairman of the U.S. Securities and Exchange Commission, Gary Gensler, called on Congress in August to give the agency more authority to improve the policing of cryptocurrency trading, lending and platforms, a “Wild West” he called from fraud and investor risk. is filled.
Coinbase Inc CEO Brian Armstrong criticized the SEC’s legal notice last week that forced the cryptocurrency exchange operator to halt the launch of its interest-bearing “lending” product.
The company’s stock is down nearly 10%, while bitcoin is down more than 13%, although the digital currency’s woes were exacerbated by a technical glitch during its rollout in El Salvador.
O’Leary said that having the government’s seal of approval would eliminate obstacles, as evidenced by the recent launch of the world’s first crypto exchange-traded fund in Canada, which attracted huge inflows.
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