Franklin Templeton CEO: The Future of the Crypto Industry Is Regulated
AUSTIN, Texas — Grousing in regards to the state of crypto rules within the U.S. has develop into the norm for a lot of business gamers, however Franklin Templeton CEO Jenny Johnson stated she thinks it’s necessary for the business to just accept that extra rules are coming – whether or not they prefer it or not.
Talking at CoinDesk’s Consensus Festival on Wednesday, Johnson stated the way forward for the business “will be regulated,” and that cryptocurrencies like bitcoin (BTC) have been a “distraction” from crypto’s actual innovation, blockchain expertise.
“Bitcoin is the greatest distraction from the greatest disruption [coming to the financial system], and that’s blockchain,” Johnson stated.
“I can tell you, if bitcoin ever became so big that it became a threat to the U.S. dollar as the reserve currency, the U.S. would limit … the use of bitcoin. Currencies are very important for governments … to manage their economies,” stated Johnson. “They will not cede their currency to this concept of a global currency.”
Johnson added that it’s higher for firms to interact straight with regulators as they develop new merchandise. Johnson added that Franklin Templeton, which manages $1.5 trillion in property, has been in shut contact with the U.S. Securities and Alternate Fee (SEC) because it developed its newly launched blockchain-based mutual fund.
Johnson added that the worldwide funding agency, which has workplaces in over 30 international locations worldwide, is used to working with regulators exterior the U.S. as properly.
“I can tell you, different areas in the world are more advanced than others, more comfortable with [crypto] than others,” Johnson stated, naming Singapore, Hong Kong, and the UAE as examples of crypto-friendly jurisdictions.
Johnson stated that regulators, each within the U.S. and outdoors of it, are nervous about passing rules that would have unintended penalties.
“This is a complicated space, and the regulators are trying to be thoughtful,” Johnson stated.
Regulatory uncertainty apart, Johnson continues to be bullish on the potential for crypto and blockchain expertise to disrupt the monetary business. Blockchain expertise may, in keeping with Johnson, open funding alternatives for asset managers by lowering friction and eliminating “toll takers” that at present waste sources.
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