Joel Telpner, NYC-based Blockchain Lawyer, Gives Forecast on the Future of Digital Asset Regulation
(thetokenist.io)
A recent panel discussion with industry thought leaders from the digital asset industry took place at Sullivan & Worcester LLP in New York City. Panel moderator included Joel Telpner, partner at Sullivan & Worcestor LLP, who made three bold predictions concerning the future of digital asset regulation.
The panel was titled âToken Exchanges: The promise of liquidity, compliance and stabilityâ.Panel moderator was Joel Telpner, partner at Sullivan & Worcestorâs New York office, and head of its fintech and blockchain practice.
Participants included Dan Truque, head of alternative assets at Symbiont; Wilfred Daye, head of financial markets at OKCoin; and Evan Malanga, director of business development at Securitize.Telpnerâs opening remarks suggested the digital asset industry is currently at the âtrough of disillusionmentâ stage of a standard hype cycle.
Telpnerâs âwild wild westâ where companies crowdfunded millions of dollars without any regulatory concern has certainly dwindled.Regulatory enforcement of various laws and regulationsâ including those applicable to securitiesâ have entered the realm.
 Initial Coin Offerings (ICOs) have in large part dissolved due to regulatory worries.Instead, companies have turned to the Security Token Offering (STO) as a compliant means of utilizing the blockchain to raise capital.With such a regulatory landscape in mind, Telpner made three bold predictions while leading panel discussion:
We should expect to see clarification from the SEC regarding which digital assets constitute securities in the near-future. While most believe the US is behind when it comes to digital asset regulation, Telpner disagrees. Instead, Telpner believes the SEC will soon provide further guidance and clarity when it comes to digital asset regulation.
Telpner may be on to something here, as the SECâs FinHub continues to facilitate dialogue with the industry. In addition, SEC Chairman Jay Clayton has recently stated that Ethereum is not a security. However, Clayton has historically argued that virtually every ICO he has seen constitutes a securities offering, with his stark response explaining how he is ânot going to change rules just to fit a technologyâ.
 Recent news corroborates Telpnerâs prediction here, as the CFTC recently charged 1pool and its CEO with nearly $1,000,000 in fines and penalties. The commission said other enterprises in the space should take notice, as others who fail to comply with the appropriate regulations will be held accountable.
A regulatory focus on stablecoins will soon emerge. Telpner described how Stablecoins are neither commodities nor securities, according to industry thought leaders. How they ought to be regulated is currently ambiguous, and methods of regulation are likely to be hashed out in the near future.
How Digital Asset Regulation is Currently Transitioning
The panel was titled âToken Exchanges: The promise of liquidity, compliance and stabilityâ.Panel moderator was Joel Telpner, partner at Sullivan & Worcestorâs New York office, and head of its fintech and blockchain practice.
Participants included Dan Truque, head of alternative assets at Symbiont; Wilfred Daye, head of financial markets at OKCoin; and Evan Malanga, director of business development at Securitize.Telpnerâs opening remarks suggested the digital asset industry is currently at the âtrough of disillusionmentâ stage of a standard hype cycle.
âWeâre all collectively paying the price at the moment, but itâs important to keep in mind that this is not a bad thing. Most all new forms of technology have experienced a high level of unreasonable exuberance in the early days and after that period, business becomes much more stable.âAdditional remarks from Telpner implied the digital asset industry is on the verge of entering a new stage:
âWeâre at the end of the beginning. This is about moving from the wild, wild, west to a more mature level of the digital currency space and tokens. Those that remain have to work hard and understand that success will come from fundamental principles in business and governance, and it will certainly pay off.â
Joel Telpnerâs Forecast on the Future of Digital Asset Regulation Explained
Telpnerâs âwild wild westâ where companies crowdfunded millions of dollars without any regulatory concern has certainly dwindled.Regulatory enforcement of various laws and regulationsâ including those applicable to securitiesâ have entered the realm.
 Initial Coin Offerings (ICOs) have in large part dissolved due to regulatory worries.Instead, companies have turned to the Security Token Offering (STO) as a compliant means of utilizing the blockchain to raise capital.With such a regulatory landscape in mind, Telpner made three bold predictions while leading panel discussion:
We should expect to see clarification from the SEC regarding which digital assets constitute securities in the near-future. While most believe the US is behind when it comes to digital asset regulation, Telpner disagrees. Instead, Telpner believes the SEC will soon provide further guidance and clarity when it comes to digital asset regulation.
Telpner may be on to something here, as the SECâs FinHub continues to facilitate dialogue with the industry. In addition, SEC Chairman Jay Clayton has recently stated that Ethereum is not a security. However, Clayton has historically argued that virtually every ICO he has seen constitutes a securities offering, with his stark response explaining how he is ânot going to change rules just to fit a technologyâ.
 Recent news corroborates Telpnerâs prediction here, as the CFTC recently charged 1pool and its CEO with nearly $1,000,000 in fines and penalties. The commission said other enterprises in the space should take notice, as others who fail to comply with the appropriate regulations will be held accountable.
A regulatory focus on stablecoins will soon emerge. Telpner described how Stablecoins are neither commodities nor securities, according to industry thought leaders. How they ought to be regulated is currently ambiguous, and methods of regulation are likely to be hashed out in the near future.
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Francisco Gimeno - BC Analyst We are not very sure about Telpner's predictions. Even though the regulations are needed to protect investors, customers etc, the SEC's mind frame is yet thinking inside the tradicional economy. Forward thinking on the nature of disruption brought by the digital economy is needed here, more when most probably the whole crypto and blockchain landscape will continue to evolve and create more advanced solutions. What do you think?