William Mougayar, author of "The Business Blockchain" and advisor to the Ethereum Foundation, said in an interview with CNBC[1] May 18, that regulators lack a foundational understanding of cryptocurrencies.
Speaking to CNBC, Mougayar explained that in an attempt to regulate digital currencies, the US Securities and Exchange Commission[2] (SEC) lacks an understanding of the core nature of the industry, trying to apply a one-size-fits-all approach:
“The SEC is still trying to educate themselves, not just educate the public … Right now they are still grappling with it and for them the box that they play in is that they see all these cryptocurrencies as a security. But in reality not everything is a security. They want everything to play in that box.”
Answering a question about whether the SEC wants to keep digital currency classified as a security, specifically so they can regulate it, Mougayar responded:
“Exactly. That’s their box, the box they play in. They see everything as a security and they are trying to fit a square peg into a round hole, but not everything is a security right now."
Regarding Twitter CEO Jack Dorsey’s recent statement[3] that Bitcoin (BTC) will be the native currency of the Internet, Mougayar said that he considers BTC[4] one of the native currencies, but “it’s not going to be the only one, there will be others.”
Mougayar stated that Ethereum[5] (ETH) will “definitely” overtake BTC because it has the “largest ecosystem of developers and start-ups, and venture capital, and all kinds of support going around it.” He said:
“What’s important is not just the technology itself - it’s who is using it.”
Mougayar further explained that currently, cryptocurrencies[6] are underused in their
