The future of the crypto industry is regulated

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AUSTIN, Texas Complaining about the state of crypto regulations in the United States has become the norm for many in the industry, but Franklin Templetons CEO Jenny Johnson says she thinks it was important for the industry to accept that more regulations were coming, whether they liked it or not.

Speaking at the CoinDesks Consensus Festival on Wednesday, Johnson said the future of the industry will be regulated and that cryptocurrencies like bitcoin are a distraction from the real crypto innovation, blockchain technology.

Bitcoin is the biggest distraction from the biggest disruption [coming to the financial system]and that’s blockchain, Johnson said.

I can tell you that if bitcoin ever became so big that it became a threat to the US dollar as a reserve currency, the US would limit the use of bitcoin. Currencies are very important for governments to manage their economies, Johnson said. They will not surrender their currency to this concept of global currency.

Johnson added that it’s best for companies to engage directly with regulators when developing new products. Johnson added that Franklin Templeton, which manages $1.5 trillion in assets, has been in close contact with the U.S. Securities and Exchange Commission (SEC) during the development of its new mutual fund based on the blockchain.

Johnson added that the company, which has offices in more than 30 countries around the world, also has experience working with regulators outside the United States.

I can tell you that different parts of the world are more advanced than others, more comfortable with it than others, Johnson said, citing Singapore, Hong Kong and the United Arab Emirates as examples of privacy-friendly jurisdictions. cryptography.

Johnson said regulators both in the United States and abroad are concerned about passing regulations that could have unintended consequences.

It’s a complicated space, and regulators are trying to be thoughtful, Johnson said.

Regulatory uncertainty aside, Johnson is still optimistic about the potential for crypto and blockchain technology to disrupt the financial industry. Blockchain technology could, according to Johnson, open up investment opportunities for asset managers by reducing friction and eliminating toll takers who are currently wasting resources.

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