Securitize Founder: At least another three years before crypto regulations come out, crypto companies still cannot escape the US

Securitize founder Carlos Domingo recently shared his views on the ongoing battle between the SEC and the cryptocurrency exchanges, blockchain companies, and related industries. He presented a viewpoint that is drastically different from the current trend and refuted claims that cryptocurrency companies do not know how to register with regulatory authorities in the United States, stating that they have already done so.

No Rules, Just Rules

The U.S. SEC recently sued Binance and Coinbase, even naming multiple tokens as illegal securities, leading to many exchanges and brokerages like Robinhood being forced to delist the trading pairs and sparking intense debates. As a blockchain-related company, Securitize founder Carlos Domingo has voiced his opinions on this matter.

Previously, Gemini co-founder Tyler Winklevoss and Coinbase CEO Brian Armstrong have both protested against the SEC for being too vague with regulations, accusing them of trying to destroy crypto companies under wrong premises and vague legal guidance.

According to The Block's report, Domingo expressed disbelief in the arguments made by the aforementioned crypto service providers about not knowing how to register with U.S. regulatory agencies, stating:

He also added, "We at Securitize have licenses and expertise to tokenize, and of course, the premise for tokenization is 'being regulated'."

Stringent Laws Prompt U.S. Crypto Firms to Flee, Domingo: Where Can They Escape to?

Domingo also claimed that the Congress still has a chance to start drafting new crypto laws, but it may take at least two to three years to pass. Regarding the criticisms and actions of the SEC potentially forcing many U.S. crypto companies to move to other more crypto-friendly countries, he believes that while some businesses may shift operations within the U.S., not many companies will directly leave the U.S.

Choosing Dubai would only allow operations within a very small jurisdiction, as they actually do not permit crypto companies to solicit investors from other parts of the world. In Europe, the overly clear regulatory framework restricts the types of trading users can engage in.

He also pointed out that the U.S. holds over 40% of the global capital markets and has the largest and most mature financial institutions, which is why most crypto companies cannot leave the U.S.

What is Securitize?

Securitize was founded in 2017, specializing in blockchain for tokenizing Real-World Assets (RWA). They have raised over $120 million to date and obtained a transfer agent license in July 2019.

Just last month, they launched a new branch fund that provides a tokenization pathway for asset management firm Hamilton Lane's private credit fund, accessible to qualified investors using the Polygon blockchain.