According to Figment executive, Robert Ellison, a regulatory framework for staking is feasible because the idea is fairly simple.
At the European Blockchain Convention (EBC) 2022, managing editor of Cointelegraph Alex Cohen spoke with Robert Ellison, head of staking marketing at Figment. The two talked about issues like educating regulators on blockchain and cryptocurrencies, how firms may negotiate ambiguous regulatory environments, and how to control staking.
In order to reduce the chances of regulators straying too far from the path of least resistance, says Ellison, it is critical to educate them in the field. The Figment executive noted that due to the complexity of the space, it is crucial to have a thorough grasp. He detailed this:
“This is the battle we’re fighting, and it’s interesting to see that balance geopolitically to some countries versus others, and we hope that they just really listen and learn.”
Along with training authorities, the pair also discussed how businesses manage in a regulatory gray area. Some businesses choose to move through with their plans rather than seeking approval up front, preferring to ask for forgiveness later. Ellison stated:
“I think that’s a business sentiment where you ask for forgiveness. You’re not going to wait. You can’t wait. You got to move forward. Some of that is more risky.”
Ellison added that some areas offer firms more assurance than others. The Figment CEO used wrapped assets, as an illustration, to show that investing in wrapped assets in America is a “riskier move” since you never know when it might become regulated.
If a regulatory framework is required for staking to become widely used, Ellison responded that it is highly attainable. However, the director of staking marketing claimed that authorities do not prioritize staking requirements. He emphasized that:
“It is achievable because staking, itself, is quite easy to understand in some regards of what you’re actually doing. But to answer your second question, I actually don’t think it’s a priority at all.”
Lending platforms and stablecoins are high on the list of regulatory priorities, according to Ellison. Staking, he said, is not now a top priority since authorities first focus on crypto’s less dangerous elements, asking “what is the most risk to the public?”
