Jeremy Allaire, the CEO of crypto unicorn Circle, has recently conducted Reddit AMA along with four other team members. Allaire touched upon such hot topics as regulations and the market sell-off.
On Dec. 14, Allaire made an appearance on CNBC, claiming that the cryptocurrency market needs more regulatory clarity when it comes to distinguishing between commodities and securities. During the aforementioned AMA, he reiterated his stance by saying that the industry faces the lack of specific guidance form the Securities Exchange Commission (SEC), which would make it easier to classify different crypto assets. That could be a catalyst for the growth of the cryptocurrency market, Allaire predicts.
On the flip side, Allaire does admit that they are making headway with regulators who are ‘keen to learn’ about the advantages of the nascent asset class. The startup has been focusing on educating regulators since its very inception by cooperating with bank supervisors, policy makers, etc. Circle’s Robert Bench also reveals that ‘a great deal of education’ is needed in the realm of the so-called privacy coins (Monero, Zcash), which has been getting a lot of regulatory attention as of recently.
Markets are in the oversold territory
Allaire states that there is a huge sell-off in the market, and some digital assets are undervalued. He points to the fact that market prices aren’t catching up with the rate of adoption, and there has been an ‘irrational’ correlation to BTC. As the market grows legs, the value of assets will be accurately adjusted to their utility.
Rachel Mayer, another Circle representative, names lack of consumer products as one of the main hindrances, which prevents fresh faces from entering the crypto market at this point. She also adds that public awareness is the key to mainstream adoption, which is why it is important to educate ordinary folks about the potential of Blockchain.