Venture Capital Founder Believes Regulations Are Generally Good For CryptoApril 20, 2022
- Future Perfect Ventures CEO believes that regulations signify that crypto has gained government recognition.
- Developed economies are still working to create a comprehensive regulatory environment for the crypto space.
The founder and CEO of Future Perfect Ventures, Jalak Jobanputra, has said that regulations are good for the crypto industry. Her statement comes not too long after US Treasury Secretary Janet Yellen’s speech on cryptocurrencies.
Jobanputra Is Pro Crypto Regulations
While speaking with Yahoo Finance Live, founder and CEO of venture capital firm Future Perfect Ventures, Jalak Jobanputra expressed her belief that regulations signify that governments have recognized the crypto industry as legitimate. According to the executive, regulations are necessary for the industry to grow.
“So I always believed that there would be regulation when this sector in the industry grew to the point where there were a lot of users. And so I believe it’s a net positive,” said Jobanputra, adding, ” I mean, there are those in the sector that don’t want to see any sort of regulation. But in order for the sector to grow, I think we are going to have to be regulated, and it’s important that the regulators understand what this technology is about.”
Jobanputra revealed that she had started the company in 2014 when the crypto industry was still in its infant stages and was perceived as something for criminals and libertarians. She disclosed that it was nice to see the industry grow to the level that governments recognize and build regulations around it. Jobanputra’s Future Perfect Ventures is a New York-based VC that invests in blockchain startups.
In Secretary Yellen’s speech which comes a month after Biden’s executive order on cryptocurrencies, she called for regulations to address the risks that arise from the innovation and not regulations based on a specific technology. Yellen noted that while innovation was good and had its obvious benefits if regulators sleep on the wheel, the most vulnerable people in society will suffer from the accompanying harms.
Jobanputra is not the only one feeling positive about the developing regulations around the crypto market in the US. Commenting on Yellen’s speech, Michael Saylor expressed the belief that the official had a good understanding of Bitcoin. He went further to add that the speech would historically be viewed as a significant event in the global adoption of Bitcoin.
The Race For Crypto Regulations
The explosion of the crypto space in 2021 and the rising institutional interest in the space have put global regulators on notice. Several developed economies are yet to create comprehensive and clear crypto regulatory frameworks.
In the US, last month, Biden, in his executive order, urged relevant federal agencies to work together to create a regulatory framework that protected investors and allowed the US to maintain its competitive edge in blockchain technology. In the UK, last week, the Chancellor of The Exchequer, Rishi Sunak, revealed plans to accept stablecoins in the country as legal tender as it works on regulations to make the UK a crypto hub.
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