ShapeShift CEO Erik Voorhees has been involved in the cryptocurrency and blockchain industry since the price of one Bitcoin (BTC) was only $5. Recently, Voorhees spoke to Bloomberg’s business anchor Caroline Hyde regarding the global impact of blockchain technology and cryptocurrency regulations.
According to the digital asset exchange CEO, cryptocurrencies should not be regulated because “a lot of it is hurtful” and could stifle innovation. Voorhees noted that crypto regulations, such as those developed by New York’s BitLicense, could have an adverse effect in the “realm of finance”. Moreover, he revealed he believes “money needs to be let loose and free” so that there is healthy competition in the markets.
Per Voorhees, by regulating cryptocurrencies regulators are essentially trying to centralize them, which is not how they are or were intended to be used. The entrepreneur also claimed the cryptocurrency market has matured and evolved to the point where it can compete with other asset classes and mediums of exchange.
Notably, he feels that blockchain technology is beginning to “take over the world” by playing a key role in revolutionizing how traditional business processes are carried out.
“Controlling the Behavior of Consenting Adults”
Voorhees went on to state that “there are a lot of projects in the space, a lot of them are garbage, a lot of them are well-intentioned, but will fail and some of them are actually going end up changing the world.” In response to a question regarding whether crypto regulations would help cut down on scams, ShapeShift’s CEO said that they would not be effective.
There should be some sort of regulatory framework, Voorhees said, that would “prevent [crypto-related] fraud and theft”; but the regulatory guidelines should be simple to follow and understand.
Per the CEO’s words:
“Most of the regulations have nothing to do with fraud or theft… they have to do with controlling the behavior of consenting adults and some of that is highly problematic.”
Voorhees concluded his discussion with Hyde by stating that there is currently a lot of confusion about whether cryptocurrency tokens or coins are securities and that it needs to be addressed.