Educating regulators will help to mitigate risks, says Figment exec
Cointelegraph’s managing editor Alex Cohen interviewed Figment’s staking advertising director Robert Ellison on the European Blockchain Conference (EBC) 2022. The duo mentioned subjects like educating regulators on blockchain and crypto, how companies navigate unsure regulatory landscapes and regulating staking.
In accordance with Ellison, it is essential to coach regulators within the house to mitigate the dangers of their going overboard with out understanding the fundamentals. The Figment government talked about that clear understanding is vital due to the difficult nature of the house. He defined that:
“That is the battle we’re combating, and it is fascinating to see that steadiness geopolitically to some nations versus others, and we hope that they simply actually hear and be taught.”
Aside from educating regulators, the duo additionally spoke about how companies navigate the house amid regulatory uncertainty. Some firms decide to go forward with their tasks and would quite express regret later quite than permission prematurely. Ellison stated that:
“I believe that is a enterprise sentiment the place you express regret. You are not going to attend. You possibly can’t wait. You bought to maneuver ahead. A few of that’s extra dangerous.”
Ellison additionally commented that some areas present extra certainty for companies than others. Citing wrapped belongings for instance, the Figment government defined that if you happen to’re in America, moving into wrapped belongings is a “riskier transfer” since you’re unsure if it might get regulated quickly.
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When requested if a regulatory framework is critical for staking to go mainstream, Ellison famous {that a} framework for staking could be very achievable. Nevertheless, the staking advertising director stated that rules for staking will not be a precedence for regulators. He highlighted that:
“It’s achievable as a result of staking, itself, is sort of simple to know in some regards of what you are truly doing. However to reply your second query, I truly do not assume it is a precedence in any respect.”
In accordance with Ellison, lending platforms and stablecoins are on the record of priorities for regulators. He famous that at the moment, staking just isn’t on that precedence record as regulators put “what’s the most threat to the general public” of their focus earlier than they transfer on to the much less dangerous elements of crypto.
