Regulator interest is good for the crypto ecosystem, says BlockFi CEO

Regulatory clarity enables crypto companies to continue to innovate, Zac Prince says.

BlockFi CEO Zac Prince agrees with United States Senator Elizabeth Warren that there is a lot of noise in the crypto industry. Still, he expects that the clarity that comes with regulations will positively impact the ecosystem. 

Describing regulators’ interest in the crypto as a natural evolution of the technology, Prince said that discussions like Wednesday’s Senate Banking Committee hearings are very positive trends overall for the crypto sector.

It’s easy to miss the forest through the trees, he said, highlighting that crypto is an asset class that has generated substantial wealth for millions of people. “It’s been the best performing asset class in seven out of the last ten years,” he said.

The crypto industry is creating lots of new jobs across the board, Prince noted, stating, “This is something that we want to continue to happen in America.”

Related: BlockFi is reportedly seeks to close new funding at a valuation of $5 billion

Asked about his opinion on the impending regulations on cryptocurrencies, he said that he expects the rules to be favorable for the business:

“Regulatory clarity enables companies like BlockFi to continue innovating. It enables consumers and investors to participate in this sector with the utmost confidence.”

This week, the Senate Banking Committee discussed a U.S. government-backed central bank digital currency in a session where Massachusetts Democratic Senator Elizabeth Warren took a generally critical stance against crypto.

Calling crypto a “fourth-rate alternative to real currency” and a “lousy investment,” she then went on to call Dogecoin (DOGE) a “bogus” currency. Warren said that the volatility of cryptocurrencies makes them unsuitable as a medium of exchange.