Cryptocurrency executives should work with regulators to bring a wider acceptance and growth for the industry, members of a digital currency panel at Wall Street's SALT conference said on Monday.
One of the participating members of the top-ranking hedge fund conference held in New York included Shark Tank host Kevin O’Leary who urged the executives of crypto companies to take a cooperative approach with regulators.
According to him, regulatory approval will make it easier for other crypto-based firms for an easier industry. He cited the example of the launch of the world’s first crypto exchange-traded fund in Canada which attracted huge inflows.
Echoing his beliefs was the CEO of blockchain-based payment platform Circle, Jeremy Allaire who also said that new crypto-based products should be in line with the current regulatory model to reduce risk and encourage wider adoption.
Regulatory hurdles are among the biggest hurdles that have stagnated the crypto-asset market amid the increased scrutiny from lawmakers worldwide. For instance, last month, the chairman of the U.S. SEC Gary Gensler asked Congress to give the agency more authority on regulating the crypto industry to protect investors from risks and fraud.
Just last week, a U.S-based Coinbase cryptocurrency exchange was faced with a legal notice from the SEC, threatening to sue the platform if it moves on in launching an interest-bearing lend product.
Coinbase’s lend product allows investors to earn interest on their cryptocurrency holdings. However, the regulatory agency believes that the yet-to-launch product qualifies as a security and that it will come under the agency’s oversight. In response to this, Coinbase replied to the agency asking for further clarification.