Macro guru Raoul Pal says that regulators are starting to see the value of crypto which could lead them to make a grand compromise on the industry.
In a new interview on decentralized finance-focused (DeFi) channel The Defiant, the Real Vision CEO says regulators are struggling to apply traditional securities laws to the complex and nascent crypto space.
[adinserter block="1"]“The traditional system is struggling to figure out how to fit this in. We’ve just seen that with a Bitcoin ETF. They’re trying to fit it into an existing framework that doesn’t work, so classic negotiating tactics would be to start with the hardest possible line first, which is everybody’s going to prison, you’re all terrible people, [and] this is all illegal.
As regulators realize how much is at stake in crypto and that the old system does not work for the space, Pal says laws specifically designed to govern digital assets could emerge.
“The reality is, I think they’ve learned pretty quickly that there’s a massive amount of money behind this and a lot of young people who have a lot of votes, so what’s going to happen? I think somewhere within this is a grand compromise, and that’s what has to happen, and it won’t be the securities laws. It will be some new digital asset laws.”
Pal says that Singapore is already making progress with its crypto regulation, but the US may still require more time to smoothen out the digital assets space.
“I think in the end there’s going to be a lot of bluster, and it’s negotiating tactics because everybody wants to get their side of the line, and there’ll be a grand compromise reached probably within, I guess, three years. I don’t think it’s going to be quick.”
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