When it comes to cryptocurrencies, its intersecting storyline with the SEC seems to keep developing. The most recent news surrounds claims by “Crypto Capitalist” Anthony Pompliano that the SEC may be considering tokenized securities and blockchain and that adoption by the commission would benefit it greatly.
For those who are unware, Crypto Capitalist is ä partner at Morgan Creek Blockchain Capital. One of his foremost goals is to change the world by tokenizing it. Pompliano, impressively enough, has recently stated that the SEC will soon mandate the use of tokenized securities. Such a statement appeared in a block post. In the post, Pompliano mentioned that tokenization is what occurs when the ownership of an asset structure is managed by a blockchain. Rather than paper certificates, shareholders own cryptographic tokens.
Pompliano continues that there are many advantages to such a system, including
“increased liquidity, global investor base, 24/7 market, and breaking of capital controls.” The next question that arises is why the SEC would even consider such a move. Of course, Pompliano addresses that to by stating, “forced adoption is a regulators response to new technology that (1) side steps current regulations, (2) enhances the data accuracy & transparency for market participants, or (3) creates a more efficient and compliant system.”
Furthermore, Pompliano mentions that the advantages of blockchain asset management systems are superior to those over a centralized ledger-based system. And that those who benefit the most are regulators. As Pompliano mentions,
“Whe you move asset ownership onto a blockchain, you are able to build a more regulatory compliant system . . . yes, tokenized securities actually create more compliance, rather than less.”
Pompliano is of the belief that switching to blockchain technology may also lead to the end of a “ridiculous amount of time, energy, and resources [spend] to monitor the securities market.” The current system is simply too slow to apprehend and prosecute.
Alternatively, it may be time to use a blockchain system. With such a system, “regulators will be able to ensure that current laws were accurately written into the underlying protocols, which then govern all securities activities.”
At the end of the day, it is difficult to say whether or not Pompliano’s claims are plausible. Currently, members of the Trump administration, Congress, and the SEC chairmen have mentioned the power of blockchain technology and its effectiveness. On the other hand, there is also a lack of clarity when it comes to cryptocurrency regulation in the United States. Accordingly, such ambivalence may prevent Pompliano’s future vision from coming to fruition.