Educating regulators will help to mitigate risks, says Figment exec


Cointelegraph’s managing editor Alex Cohen interviewed Figment’s staking advertising director Robert Ellison on the European Blockchain Convention (EBC) 2022. The duo mentioned subjects like educating regulators on blockchain and crypto, how companies navigate unsure regulatory landscapes and regulating staking. 

In keeping with Ellison, it is essential to teach regulators within the house to mitigate the dangers of their going overboard with out understanding the fundamentals. The Figment govt talked about that clear understanding is vital due to the difficult nature of the house. He defined that:

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“That is the battle we’re preventing, and it is fascinating to see that stability geopolitically to some international locations versus others, and we hope that they only actually hear and be taught.”

Aside from educating regulators, the duo additionally spoke about how companies navigate the house amid regulatory uncertainty. Some firms choose to go forward with their tasks and would quite make an apology later quite than permission upfront. Ellison mentioned that:

“I feel that is a enterprise sentiment the place you make an apology. You are not going to attend. You may’t wait. You bought to maneuver ahead. A few of that’s extra dangerous.”

Ellison additionally commented that some areas present extra certainty for companies than others. Citing wrapped property for example, the Figment govt defined that if you happen to’re in America, entering into wrapped property is a “riskier transfer” since you’re unsure if it could get regulated quickly.

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When requested if a regulatory framework is critical for staking to go mainstream, Ellison famous {that a} framework for staking could be very achievable. Nevertheless, the staking advertising director mentioned that laws for staking usually are not a precedence for regulators. He highlighted that:

“It’s achievable as a result of staking, itself, is kind of straightforward to know in some regards of what you are truly doing. However to reply your second query, I truly do not suppose it is a precedence in any respect.”

In keeping with Ellison, lending platforms and stablecoins are on the record of priorities for regulators. He famous that at present, staking is just not on that precedence record as regulators put “what’s the most threat to the general public” of their focus earlier than they transfer on to the much less dangerous features of crypto.