Crypto experts and analysts have added their opinion to the recent proceedings with the SEC delaying decision on the VanEck/SolidX Bitcoin ETF proposal. In retrospect, several prominent leaders representing cryptocurrency institutions have jointly submitted a letter to the U.S. SEC, urging them to reevaluate their policy making.
Of several recommendations made to the SEC, Bitcoin Core’s developer Bryan Bishop argued that the biggest change the SEC should bring about is to implement policies and regulations directly in partnership with cryptocurrency engineers. Bishop and others made these directions to the SEC in a letter dated September 19 that said:
We recommend that the SEC engage with those who are experienced with technology, such as cryptographic engineers, software developers, Bitcoin exchanges, smart-contract designers, blockchain developers, and existing digital-asset managers to ensure best practices are implemented.
In this space, other crypto analysts have come up and backed Bishop’s suggestion made to the SEC. When asked by BlockPublisher if he agreed with the sentiment, Morgan Creek Digital’s founder and partner, Anthony Pompliano was ‘of course’ in agreement. He added that he did not know whether the SEC would have considered these suggestions and did not comment further on the proceedings taking place.
Adding his valuable opinion was blockchain expert and board member of 9Spokes, Thomas Power. He seemed to agree with Bryan Bishop’s claims on the basis of ‘logic’ but refused to see historical evidence behind such a move coming to exist.
In addition to his role as one of the authors of the letter to the SEC, Bryan Bishop shared with Forbes how only technically sound individuals and ones with knowledge of cryptography rather than politics should be employed in deciding the future for cryptos. He said:
Bitcoin is fundamentally a technological system with many nooks and crannies, It’s the concept that rules can be enforced using software, math and cryptography rather than policy.
The letter also argues to put restrictions on Bakkt, the ICE planned cryptocurrency exchange expected to launch in November. They state that the process of storing all funds in a single place and lending out or otherwise investing the stored cryptocurrency could devalue Bitcoin by creating more liquidity than there are assets to back it. According to the report:
Digital assets are natively segregated, and maintaining this natural segregation at all times would best protect investors by conforming to the architecture of digital asset technology.
Authors of the letter warned that if drastic measures, such as those suggested in their recommendations were not taken, we would be heading towards the very dynamics that led to the financial debacle of 2008.