Gordon Einstein, hybrid Crypto-Attorney, Technologist, and Enterprise Strategist, shares his insights on the US regulations and how the US has dealt with organizations like EOS and Facebook at the AIBC Summit Malta.
Last October, the United States securities regulator has declared hefty fines for crypto companies. The penalties have been levied for EOS unregistered token sale and a fraudulent public offering.
Regarding Facebook, the United States politicians stated that Facebook’s Libra stablecoin must meet the highest anti-money laundering (AML) and terrorism financing standards, as per the United States Treasury under Secretary of Terrorism and Financial Intelligence.
When asked about how he is seeing labor on Facebook at the moment and the U.S. secretary move, Gordon said,
“It’s tough and it’s staying tough. We haven’t seen much movement in terms of opening up to crypto in general. We’ve seen what I call regulatory theater coming from both the Congress and from the S.E.C. One of my main concerns is that the U.S. is falling behind while the rest of the world is pulling ahead.”
Gordon stated that he has been on a two-month tour in Europe speaking to Libra supporters. He remarked that Facebook did the best job of presenting the Libra project, with David Marcus testifying it in both houses of Congress.
When asked what could be expected from U.S. regulators further on, Gordon stated that the U.S. might be left behind, especially when they consider what China is doing and what China has openly said on that stance. The US undoubtedly has been left behind the smaller jurisdictions such as Malta, Liechtenstein, Switzerland, and Singapore.
Regarding his stance on blockchain and crypto, he openly remarked that the U.S is now seeing less offshore and more substantial countries with internal securities markets moving towards blockchain and crypto. This is because of the competitors adopting blockchain technology. He further remarked,
“And so, it’s not just these outliers anymore it’s substantial allies of ours and competitors of ours adopting this technology. And it’s rough with the United States. We have a regulatory scheme from the 1930s that was designed to protect you know to deal with the damage that was caused by that your main street investors as part of the great crash.”
He opined that the federal system of the U.S. is a complicated form of government as the states enjoy a lot of autonomy. So, it is hard to move forward to the United States. When asked about centralized forms of Law, he said, countries like India, China, and Russia have some centralized forms of law, which is a small challenge to them. When asked about his standpoint on SEC, he said,
“The S.E.C. is gonna come down like a ton of bricks. Well, this is hasn’t because the S.E.C. has been very inconsistent and unclear. They come down like a ton of bricks on fraudulent offerings as well they should look, I’m not one for endorsing a fraud. No, you shouldn’t lie about what you’re issuing. They come down less like a ton of bricks on offerings that may have involved the unregistered sale securities where there wasn’t fraud or manipulation involved. And it’s just. It’s just so unclear.”