William Mougayar, author of "The Business Blockchain," and CIO of new blockchain investment firm JM3 Capital has strongly questioned the SEC’s grasp of the crypto space - pouring scorn on their motivations.
Talking to CNBC today, the venture capitalist explained that the SEC’s efforts to regulate the constantly-evolving cryptocurrency markets suffer from a failure to grasp the the true nature of the industry.
“The SEC is still trying to educate themselves, not just educate the public… they are still grappling with it. They see all these cryptocurrencies as a security - but not everything is…These currencies could be a utility - with a real usage - utility comes before being a security: that’s the novelty the SEC is trying to wrap their heads around.”
When asked if the SEC is defining cryptocurrency tokens as securities simply so that they are able to regulate them, Mougayar responded definitively, saying:
“Exactly - that’s their box, they see everything as a security - they are trying to fit a square peg into a round hole."
More broadly, Mougayar said that he sees bitcoin as one of the native currencies of the internet in ten years time, but that ethereum will “definitely” overtake the current king of the cryptocurrency word - as it has the “largest ecosystem,” built on its platform - concluding that:
“what is important is not just the technology itself - it’s who is using it..”