Financial innovators are engaging in a strategic game with the United States Securities and Exchange Commission (SEC), and according to Roger Bayston, the head of digital assets at Franklin Templeton, this is only fair. Bayston expressed his views during an interview with Cointelegraph’s Turner Wright at the Consensus event. He acknowledged that regulatory bodies like the SEC often rely on legal precedents that are established in courts of law. Therefore, the ongoing process of engaging with the SEC is a necessary one.
Despite some skepticism regarding the SEC’s “open door” policy, Bayston believes that the agency’s actions are aimed at safeguarding the economy and should not be seen as insurmountable obstacles. He noted that there have been noticeable changes at the SEC this year compared to the previous year. Franklin Templeton has had positive interactions with the SEC and is optimistic about the agency’s shifting tone.
Franklin Templeton’s journey in launching its Franklin OnChain U.S. Government Money Fund (known as “Benji”) in 2023 involved a five-year collaboration with the SEC. During this process, the company aimed to educate the SEC about the applications of blockchain technology in operating mutual funds.
Bayston drew parallels between tokenized money funds and stablecoins, highlighting the similarities in their operations. In both cases, the saver provides funds to the operator, who then invests the money and returns the profits to the operator. Bayston compared this model to the coexistence of banks and money funds over many decades and suggested that it would continue in the future.
Bayston expressed Franklin Templeton’s bullish stance on cryptocurrency, stating that it is as important to investment portfolios as technology stocks were 30 years ago. The company recently filed an application with the SEC for a spot Ether exchange-traded fund, which was approved alongside other applications on May 23. Bayston mentioned that he was not surprised by the timing of the approval, as the SEC aimed to provide equal opportunities in the nascent cryptocurrency market.
In conclusion, the article emphasizes the ongoing engagement between financial innovators and the SEC, with Bayston highlighting the positive developments and changing tone at the agency. Franklin Templeton’s journey in launching its money fund was viewed as an educational process, and Bayston expressed optimism about the future of cryptocurrency in investment portfolios.