“The very foundation of cryptocurrencies is antithetical to global regulation and the centralized financial system that regulators seek to maintain and protect.” Stephen Last says.
Cryptocurrency Regulations have been introduced in various parts of the world. While many in the industry have welcomed this latest development, Stefan Rust, CEO of Laguna Labs, believes regulation could stifle innovation in cryptocurrencies.
In an exclusive discussion with Coinjournal, Rust made his point by discussing some of the current cryptocurrency bills around the world.
One bill under discussion would require USD-pegged stablecoin providers to back their reserves 1:1, while the second bill would require USD stablecoin providers to back their reserve assets. Enforce full disclosure. A third bill is currently being debated that will greatly restrict algorithmic stablecoins.
The law allows the U.S. Securities and Exchange Commission (SEC) to ban the creation or issuance of new algorithmic stablecoins for two years while addressing what regulators see as a dangerous threat to the global financial ecosystem. It is said that it will happen.
He added that the EU is ready to issue the much-anticipated Crypto Market Regulation Act (MiCA). This reportedly requires cryptocurrency companies to register with the authorities, hold enough capital to back their stablecoin, and provide clear information to new investors.
But Rust pointed out that one of the main reasons Bitcoin was created was to ensure that people would be financially free. Nevertheless, I was used to bailing out financial institutions.
Rust supports regulation of the cryptocurrency market, but believes it is best achieved through self-regulation. Rust added that self-regulation drives innovation, especially in the crypto space. he made it clear.
“At Laguna Labs, we have been working on ‘flatcoins’, a kind of token that retains purchasing power from the moment you buy it to the moment you sell it. Our flat coin, Nuon, is anchored in a basket of consumer goods and services that represent the cost of rising living standards for the average person. This is a much more accurate representation of the average person’s value than a dollar. “
Rust, he added, holds pegs through an algorithm that Nuon dynamically adjusts. However, unlike UST, it is fully collateralized by exogenous tokens such as BTC and ETH. But most importantly, Nuon is fully decentralized.
He believes that most investors see cryptocurrencies as a viable and viable alternative to trading, saving and investing in a way that allows average people to maintain, protect and grow their wealth, privacy and independence. I pointed out that I think it should be provided.
Investor privacy and independence will be affected if centralized regulation is introduced into the cryptocurrency space, Rust concluded.
Rust is US SEC sets up office Focus on crypto assets.