Shapeshift CEO asks Financial Regulators to hug Cryptos

Erik Voorhees, CEO of cryptocurrency exchange Shapeshift, called on regulators to accept cryptocurrencies as a competition to the existing financial system
12 June 2018   2219

Voorhees expressed his point of view in an interview with Bloomberg. He displayed some problems within the cryptocurrency industry, including regulation, competition and the future of Switzerland-based Shapeshift AG. Voorhees confirmed the existence of centrally-issued money is incongruous to the existing framework of a market-based economy. Then he compared the issuance of money to a manufacturer of shoes and claimed if strict regulations prohibit the latter from getting a monopoly in the market, the same ideology must apply to fiat currencies.

Voorhees said that money is the foremost good in a market-built economy and have be open to competition:

Most regulation is superfluous at best, and a lot of it is quite harmful. Even if someone doesn’t buy into the idea that cryptos will overtake fiat, most people should at least be interested in the fact that competition is now happening. That’s generally seen as a good thing.
Erik Voorhees,
CEO, Crypto Exchange Shapeshift

Shapeshift CEO also expressed an opinion that the present model of regulation makes problems instead of remit them. Criticising American cryptocurrency regulations, he continued:

Regulation should focus on preventing fraud and theft. There is no need for thousands of pages of regulations to prevent fraud. Most of the regulations have nothing to do with preventing fraud. Consenting adults who are not cheating each other should be allowed to interact economically in any way they see fit.
Erik Voorhees,
CEO, Crypto Exchange Shapeshift

Voorhees supposes that growing regulatory legislation has a positive correlation to “brain and capital flight” in the crypto sphere, citing the example of the New York-based BitLicense. At the end of the interview, Vorhees hinted at the SEC’s ambiguity over Initial Coin Offerings (ICOs) as another reason that impacts Shapeshift’s reluctance to run an ICO.

ETH May Become Security After POS Migration,- CFTC

At the moment, according to the head of CFTC, Ethereum is more likely an exchange commodity rather than a security, but it may change 
14 November 2019   142

The head of the Commission for derivatives trading (CFTC) Heath Tarbert expressed the opinion that cryptocurrencies involved in the cryptocurrency using the Proof-of-Stake algorithm can be considered as securities. It is reported by Decrypt.

Earlier, the head of the CFTC said that in its current form, Ethereum is more likely an exchange commodity rather than a security. However, I am sure Tarbert, over time, the status of an asset may change. For example, a security can become a commodity and vice versa.

We are thinking carefully about it.

Heath Tarbert

Chairman, U.S. Commodity Futures Trading Commission

The popular Proof-of-Stake (PoS) algorithm involves the use of “stake” as a resource that determines which particular node receives the right to mine the next block. Higher chances to generate the next block are received by the node with greater balance.

Recently, staking services that promise customers a return on investment in PoS assets have become popular. According to some experts, these services could potentially violate the provisions of the Howie test, such as having a joint venture, as well as an investment contract involving two parties.

At the same time, Tarbert spoke out against an aggressive approach to regulating cryptocurrencies, which could suppress innovation and hinder the strengthening of the US position in the innovation sphere.

Clarity and consistency is the first step to leadership.

Heath Tarbert

Chairman, U.S. Commodity Futures Trading Commission

Earlier, Heath Tarbert expressed the view that regulated futures based on Ethereum will soon appear on the market.