Stephen Palley says ICO boom was just a flash in the pan and will not happen again
The regulatory climate of the crypto-verse has always been a hotly debated topic with multiple parties taking sides as to whether the governing bodies need to amend their rules and regulations regarding cryptocurrencies or keep it as it is. In an interview with Max Keiser of the Keiser report, Stephen Palley, a famous lawyer in the field of cryptocurrencies and a partner at the Washington DC officer of Anderson Kill, talked about the lack of information related to rules in the space. He also spoke about amending the regulations proposed by the SEC.
Palley started by saying that the courts are applying existing laws to something that they didn’t even know while claiming that the ICO boom was a ‘flash in the pan’ and would not happen again.
According to Palley:
“I am not personally inclined to use unknown technology that we don’t understand to raise money. What I do know is that what happened in December 2017- June 2018 will not happen again. Right now we are dealing with disputes in the space, and ones that are related to regulations.”
Palley was then asked whether the Securities and Exchange Commission [SEC] need to be changed and whether there was a requirement for new laws. The lawyer firmly stated that he believed in the Howie test that is being used in the space right now as it is all about securities. He added:
“I am not sure why we need a change in the securities act, but I do believe that there are some areas where there can be more regulatory clarity, especially the Bank Secrecy Act. The changes can also extend to transactions that are crypto to crypto transactions as well.”
Stephen Palley was also in the news recently when he had said that the BTC price crash was not because of the SEC crackdown. In his words:
“I’m not sure that there is necessarily any connection between recent SEC activity and the price of cryptocurrency that may or may not be the case but it’s difficult for me to see a necessary cause or relationship.”