Circle-acquired Poloniex, the US-based cryptocurrency exchange’s decision to geofence nine digital assets on its platform was met with criticism from some of the most prominent figures in the community. Jeremy Allaire, the CEO of Circle has, however, come out in support of Poloniex’s decision, stating that it was in response to the “uncertain regulatory climate in America”.
In a recent blog post, the CEO stated that digital assets were a “fundamental new class of financial instruments”, one which could not be clubbed with categories such as securities, commodities, and currencies. Stating that the platform would continue to advocate for change, he added,
“Many digital assets occupy one, two, or all three depending on their context and use.”
According to Allaire, cryptocurrencies were “innovative technologies” which necessitated a new regulatory framework. Talking about the Token Taxonomy Act that excluded crypto-assets from being categorized as securities, the post read,
“This provision provides much needed regulatory certainty so that the token economy can grow. When it was reintroduced this year, it had more sponsors than the prior year including Josh Gottheimer [D-NJ], Ted Budd [R-NC], Tulsi Gabbard [D-HI], and Scott Perry [R-PA].”
The bill garnered satisfactory responses from the crypto-community after it was reintroduced in April this year. The Token Taxonomy Act detailed jurisdictional clarification of state regulators and addressed the lack of clarity surrounding digital assets and the setbacks faced by entrepreneurs and businesses leveraging blockchain technology. Allaire also added that members of Congress had opened up and were excited to learn about the technology.
Conceding that other platforms might not geofence assets as Poloniex did, Allaire said that the latest move only strengthened the claim that the SEC’s guidance raises more questions than clarity. He added,
“We don’t want the US to get left behind and won’t sit by, quietly, while innovators are driven out of the country.”