The new normal in the crypto world is getting worked up about regulation. Yet, the future of the market as a whole lies in companies working with regulators, said the CEO of Franklin Templeton, Jenny Johnson, at the annual Coindesk’s Consensus conference.
She called the crypto market’s flagship currency Bitcoin a distraction and called attention to real innovation – blockchain technology.
Focusing on individual cryptocurrencies is meaningless. For example, the US government will never allow Bitcoin to become an alternative global currency. For all nations, currencies are important to establish their sovereignty and control. Governments will not cede this vital form of control to a decentralized market.
Instead of focusing on individual currencies, companies need to view blockchain as a source of innovative financial products, Johnson said. She gave the example of her company and shared her experience working with the SEC.
Her company manages 1.5 trillion dollars in assets. It cannot do so effectively if it does not work with regulators across the world. Each country has its own unique attitude towards the crypto market. Hence, like all commodities, regulations for cryptocurrencies will vary from country to country.
Franklin Templeton recently launched a new blockchain-based mutual fund. While doing so, the company worked closely with the SEC. Johnson said that crypto markets were new territory for regulators and that they were being thoughtful in order to avoid unintended consequences. She urged crypto companies to shed their preconceived notions and work with regulators to create a stronger market.
