Crypto exchange-operator Circle announced last week that it would cease trading of a number of cryptocurrencies on Poloniex in the U.S. due to regulatory concerns. And now, Circle co-founder and CEO Jeremy Allaire is responding to clients, saying it is addressing its concerns with Congress and global policymakers.
Poloniex chose to delist nine coins in the U.S. because recent guidance from the Securities and Exchange Commission (SEC) has regulators broadening which crypto assets could be considered securities, according to Allaire. Those U.S. customers holding ARDR, BCN, DCR, GAME, GAS, LSK, NXT, OMNI or REP on the exchange will have until May 29 to close. After that, customers will still be able to withdraw any currency supported globally by the exchange.
“Our decision to geofence assets represents our effort to respond responsibly to the uncertain regulatory climate in America,” Allaire said in a post. Other companies may not choose to geofence assets, which Allaire said is indicative of the lack of clarity in the SEC guidance.
He said regulation has failed to keep up with innovations at Circle. In response, Allaire said such innovation requires new regulatory framework, and he is optimistic.
“We’ve taken this message to Congress for years and those efforts are starting to bear fruit,” he said in a statement.
He pointed to the Token Taxonomy Act, which was reintroduced this year after its initial introduction last year. The legislation would definitively exclude tokens from defined securities.
“We see glimmers of hope in US legislation like the Token Taxonomy Act and in regulators’ outreach to us and others for information about crypto,” he said.