Bruce Fenton: We Don’t Need Extra Regulation for Security Tokens
At the CoinAgenda Global conference on October 24 in Las Vegas, crypto investor and entrepreneur Bruce Fenton declared that security tokens don’t need extra regulation from the SEC. Why? They’re already legal, and they always have been.
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No Need for Extra Regulation
Since the SEC created a distinction between “security” and “utility” tokens, entrepreneurs in the space have stressed over how to comply with the extra regulation involved in launching a security token — or even figuring out what kind of token they actually had.
And that is totally unnecessary, said Fenton.
These types of regulations — such as KYC/AML and other rules now applied to security tokens — are simply made up by “jackasses” to make people jump through hoops, Fenton said.
In reality, security tokens have always been legal, because they are no different from any other kind of security. And there is no such thing as an illegal security, Fenton told the audience, adding that “people used to trade securities under a tree” in the 1930s.
Furthermore, Fenton continued, the system of trading securities dates back to 1602, and has worked without all these extra rules. Therefore, there is no reason why security tokens shouldn’t be able to exist under the same system. As long as companies follow the rules on how securities should be issued, they should be able to freely issue security tokens.
Despite Tough Regulation, Blockchain Has a Bright Future
Although the crypto industry faces regulation Fenton believes is unnecessarily strict, he still believes blockchain technology can improve many industries.
Referring to the long-tail platforms like YouTube have created for content, Fenton told the crowd at CoinAgenda that security tokens can create those long-tails for capital markets. Similar to how YouTube allows smaller creators to gain audiences that generate income over time, blockchain can help local and niche businesses gain funding they can’t currently access.
With security tokens, people can buy equity in their local sandwich shop, Fenton said. And because of that, small business can have a better chance at securing longer-term income and overall success.
Thus, even with the tough regulations, Fenton believes the future is bright for the crypto industry.
What do you think about the future of security tokens? Share your thoughts in the comments section.
Images via Pixabay, Evan Faggart