According to Mark Moss, the CEO of Market Disruptor, there is going to be significant regulation in the crypto-currency industry following the FTX collapse. He believes that future crypto-currency bull runs are unlikely to happen. However, Moss says that bitcoin will continue to be in demand because it “solves a problem that has plagued humanity since day one.“
Market Disruptor CEO predicts regulatory change in the wake of FTX’s collapse, and sees most crypto-currency assets regulated as securities in the future.
On December 29, 2022, Mark Moss, the CEO of Market Disruptor, spoke on with Michelle Makori, Kitco News senior anchor and editor-in-chief of the company, about the crypto-currency industry and bitcoin. Moss believes that the recent FTX collapse has accelerated regulation, and he believes that most crypto-currency assets will be regulated as securities in the future. As an example, the U.S. Securities and Exchange Commission’s (SEC) recent charges against FTX co-founder Sam Bankman-Fried define FTX’s exchange token, FTT, as an unregulated security.
To provide another specific example, a New Hampshire court also sided with the SEC in the case against LBRY, and LBRY stated that the language used to influence the court’s decision “sets an extraordinarily dangerous precedent“. Mark Moss told Michelle Makori that treating most crypto-tokens as securities will likely require projects to create full disclosures for investors. “Imagine Ethereum going through full disclosure“, Moss said in the interview. “Who created the token? How many tokens are controlled by insiders?“
The Market Disruptor executive and author of “The Non-Communist Manifesto” added:
What is the connection between the Ethereum Foundation, Joseph Lubin and Vitalik Buterin? Who controls the tokens in The Merge lockup? … I can’t imagine they want to go through full disclosure.
Mark Moss said it’s likely that some crypto projects will move overseas, but he stressed that he believes U.S. investor money won’t follow those projects. “Of course, the SEC is putting the squeeze on and crypto currencies are going overseas to a more permissive jurisdiction“, Moss told Makori. “But U.S. venture capitalists can’t get around U.S. regulations to try to invest in these small, obscure markets. So of course it will move to another country… but the money won’t go with it, which brings down the entire market cap.“
While Moss doesn’t expect another altcoin season or crypto bull run, he does believe that the leading crypto asset, bitcoin will continue to thrive. Moss insists that bitcoin is a “technological revolution that is changing the course of humanity and driving the financial markets.“Mark Moss added that he does not want the hammer of regulation to come down, and further insisted that he was only explaining the case as he sees it unfolding. Moss stressed:
The time has come for regulators to be forced to respond. The SEC’s number one job is to protect consumers, and they have failed. It should close its doors in disgrace and go out of business. Of course, that’s not going to happen, but it has to regain trust somehow, and I think the fall of FTX is going to force the regulators to act.
Mark Moss predicts that the price of bitcoin will reach $33,000 to $38,000 next year, the debate on the classification of securities in the crypto-currency sector is coming.
In 2023, Moss predicts Bitcoin to reach $33,000 per unit and possibly as high as $38,000. “Bitcoin solves a problem that has plagued mankind since day one: how do I secure my assets so they can’t be manipulated, seized or stolen?“. noted Moss. “I can have custody of Bitcoin and if I want to send it to you, no one can stop it, block it or prevent it.“
There’s a lot of debate about whether specific crypto assets should be considered securities, and in the U.S., regulators have not reached a complete consensus. For example, SEC Chairman Gary Gensler has said that most crypto-currency tokens are securities and he has previously said that the “law is clear on this.” “I believe that based on the facts and circumstances, most of these tokens are titles“, Gensler said in an interview.
Gary Gensler also once said he could confirm that bitcoin is a commodity, but that’s the only crypto-currency token he talks about in that way. In May, U.S. Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam said he could surely say that bitcoin is a commodity. “Well, I can say with certainty that bitcoin is a commodity. So is Ether.“, Behnam explained in his interview with CNBC.