Financial innovators play the long game with the Securities and Exchange Commission

Financial innovators are playing the long game with the U.S. Securities and Exchange Commission (SEC), and it’s only fair game, according to Roger Bayston, head of digital assets at Franklin Templeton.

“The SEC, like many regulatory agencies, likes to rely on precedent. (…) These precedents are set quite often in the courts, so this is the process that we participate in,” Bayston told Cointelegraph’s Turner Wright at the consensus event.

Despite frequent expressions of cynicism toward the SEC’s “open door” policy, Bayston viewed the agency’s behavior as aimed at protecting the economy rather than intractable:

“We would not have been in business for 76 years – a matter of trust – if we had not demonstrated a certain discipline, perseverance and cooperative behavior with the global regulators we face. »

Bayston noted that things are changing in the SEC compared to last year. “We have had a pleasant engagement with the SEC … and we are pleased that they are changing their tone,” he said.

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Franklin Templeton launched the US government fund Franklin OnChain (“Benji”) in 2023, but getting there took “virtually five years of traveling with them (the Securities and Exchange Commission), helping to enlighten them and educate on the uses of blockchain technology.” .” In the operation of mutual funds.

Source: Franklin Templeton Digital Assets

Cryptography adds value to blockchain technology

Baystone compared tokenized funds to stablecoins. The saver gives the money to the operator, the operator invests it, returns the money and the profit from the investment goes to the operator.

“Banks and treasury funds have coexisted for many decades. “I think it’s the same construction that will probably continue,” Bayston said.

Franklin Templeton is bullish on cryptocurrency, Baystone suggests:

“We believe in the technologies and therefore believe that (crypto) tokens, properly designed, represent value for these technologies.”

He said cryptocurrencies are as important to investment portfolios as technology stocks were 30 years ago.

Franklin Templeton submitted its application to the Securities and Exchange Commission for an Ethereum spot trading fund later than other applicants. The agency initially delayed a decision on his request until June 11, but approved it and the other requests on May 23.

Bayston wasn’t surprised. He added that they were “not trying to give anyone an advantage in this emerging market.”

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