Jeremy Allaire, CEO, and co-founder of Circle, a Boston-based crypto finance company, backed by Goldman Sachs, recently in a team Circle initiated AMA thread on Thursday, Jan. 10th 2019, when asked “What’s the biggest regulatory hurdle you face ?”, answered that the biggest and most immediate regulatory hurdle which crypto faces is the lack of guidance from the SEC (US Securities and Exchange Commission), something concrete and robust, on a fine-grained classification of various crypto assets.
Continuing he said that, many are clearly currencies and commodities, and there needs to be more detailed and fine-grained specificity on what are really securities. This clarity from the US regulator can help unlock a lot of market activity, and also help accelerate the growth of crypto securities market.
Furthermore, when asked about plans to work along with IRS in a bid to bring some regularity to crypto tax laws, Allaire stated that it’s his and firm’s belief that there must be different tax treatment for crypto-to-crypto transactions, especially those transactions which include smaller amounts. He further noted that France, took a lead in this regard and started pursuing a statutory amendment to this end, but sadly the prospective bill to ease crypto-crypto taxation recently faced a setback in its parliament.
Robert Bench, Head Regulatory Counsel & Chief Compliance Officer at Circle, who also participated in the threaded discussion, said that there is no specific legislation for privacy coins in the US, and the firm may consider using such assets to assess risks for its customers.