Interest Continues To Grow In Crypto Assets, But Securities Are Years Away From A Mainstream Concept
The bear market has not quite ended in the cryptocurrency industry, but there are many ways that mainstream interest has been expressed lately, whether through crypto assets or even blockchain technology. However, there are plenty of use cases that, while initially were successful, may not express the true views of the collective.
In a panel discussion this weekend at ETHDenver, an Ethereum conference, the co-founder and managing partner of SPiCE VC was in attendance. Tal Elyashiv, who was a part of the first firm to release a crypto security in accordance with the current laws of the SEC, said that the idea of making these crypto assets into mainstream payment options is still “in its infancy.”
He noted that the infrastructure to positively influence the securities market has yet to progress to a point where these tokens can truly flourish.
Continuing, he said,
“We’re going to start to see major pieces of the business infrastructure coming within the next few years… We’ll start to see institutional investors coming this year.”
In attendance with Elyashiv was COO Shala Burroughs of Satis Group, director Frederick Allen of the digital asset services of crowd equity platform Republic, and CPO Thomas McInerney of OpenFinance. All of his other panelists seemed to have the same opinion in having this cautious approach to full mainstream integration.
“When you talk about a security token, it’s a token representing a security. It’s not just a name. It means not just what the token is but how the whole process is managed … throughout its lifetime.”
The lack of regulatory certainty is perhaps what is holding back the full potential of the tokens, but that delay will likely continue for “give or take a year.” Government officials within the SEC need to determine clearly what qualifies a crypto asset as a security and what other definitions that a crypto asset can fall into, like a commodity.
Until these policies are prepared, Burroughs issued a warning to investors that they will need to be guarded in how they accept statements regarding the maturity of the securities industry.
More specifically, she said,
“If you’re seeing articles that are reporting this vast ground swell of money into this industry, that’s not really in line with exact reality. It’ll take a few years for us to get there.”