Notable co-founder and CEO of blockchain-based computing network, Blockstack, Muneeb Ali has created a buzz with his statement on crypto regulatory regime. The spearhead in a recent interview on CNBC’s “Squawk Box” stated that he was cautiously optimistic about the regulatory pull emphasized by the U.S on the crypto space.
Muneeb Ali graced the discussion to share his views on the successful completion of the first-ever SEC qualified token sale focused on retail investors.
In the opening slot, SEC chairman Jay Clayton commented on the hardship revolving around the Bitcoin price discovery. He compared the situation with the traditional markets such as the NASDAQ. He clarified that digital assets trading requires an extra layer of regulatory control that promises to aid security for investors.
The Blockstack leader joined the elite panel by confirming that the SEC has genuine concerns about the trading of Bitcoin. He added that in reality, the watchdog would probably like to see the digital coin disappear in entirety. Ali quoted: “I remain cautiously optimistic about the work that the SEC are doing.”
In reference to his token sale, Ali said that there are quite a number of crypto exchanges which are in the queue waiting for the approval from the regulatory agency.
As per the WSJ, SEC gave its nod to a $28 million Reg A+ offering for the blockchain-focused internet firm earlier in July. It was revealed that the company has to invest $2 million in order to attain regulatory approval from the agency. The Reg A+ platform renders firms to raise to $50 million from retail clients as well apart from accredited investors.
Ali stated that his operational strategy of work in conducting the token sale lays out a draft or guidelines framework for other firms to follow who are seeking similar approval.
Muneeb Ali said,
The second part of the picture is where are these assets going to trade in the US. Most of the big players in the industry are trying to get these appropriate [regulated exchange] licenses. That would complete the picture where you can issue tokens and trade them in a fully regulated way.
He showed concern by saying that several US ventures and companies might have to offer token trading overseas at first place until the US territory gets satisfactory exchanges. Stalling of operations by US regulators reveals the fact that there is a lesser number of regulated exchanges available for trading which is likely to have an ill-impact on the liquidity of any upcoming digital asset in the market.
Ali, in relation to Bitcoin, said that the primary reason for SEC’s concern was the fake volume of the currency. He addressed Ethereum to be experimental and even pointed out that his own firm was a direct rival for the decentralized platform.