Despite not seeing regulation as the issue, Brian Quintenz said he knows why the crypto industry frowns upon the Securities and Exchange Commission (SEC).
Quintenz, the former commissioner at CFTC (Commodity Futures Trading Commission), claimed that the regulatory framework is demanding in its current state. He explains in an interview at Mainnet 2022 why some are seeking to resort to a different approach from CFTC.
I think what the crypto ecosystem wants is rules that fit its technology, that are fit for purpose, that allow for the innovation to actually reach its full potential. You’re not getting that out of the SEC.
Brian Quintenz
Based on a statement he released at the end of his tenure, he supervised the listing of Bitcoin futures contracts in the U.S. and the establishment of tokenized assets, along with other developments related to crypto.
Quintenz is currently employed by venture capital firm Andreessen Horowitz as an advisory partner of its crypto team. He stated he was immediately contacted by the firm after he left the agency as they recognize the crypto ecosystem’s significant focus will be policy, regulation, and legislation, and the protection of the ecosystem.
He claimed — instead of laying the foundation for the adoption of new technology — some regulatory organizations have embraced a more conservative stance on crypto. The former commissioner stated that the SEC could “do things that allowed for a kind of securities-like regulatory structure to exist” without the expense of the whole ecosystem
Identifying cryptocurrencies as securities, according to him, raised some concerns about how organizations could adhere to current regulations, establishing requirements on entities that don’t have any way to fulfill those obligations.
He gave an example that if something is classified as a security, a central issuer would be required to transmit proxy statements to all token holders, followed by a question asking how would that work.
Quintenz noted that one of the few ways he believes the CFTC could gain control over crypto trading is through Congress establishing a new framework due to SEC’s rigidity. His efforts have included educating elected authorities about the potential benefits of the more tightly regulated crypto industry.
He also disputed the notion held by some that the industry would suffer from any regulation of crypto. In fact, Quintenz believes that the reverse can be true — as long as the legislation is well-tailored and calibrated.
