Financial innovators are engaging in a strategic game with the United States Securities and Exchange Commission (SEC), and this approach is deemed fair by Roger Bayston, the head of digital assets at Franklin Templeton. Bayston explained that regulatory bodies like the SEC often rely on legal precedents, which are usually established through court proceedings. He expressed his views during an interview with Cointelegraph’s Turner Wright at the Consensus event. Despite skepticism about the SEC’s “open door” policy, Bayston believes that the agency’s actions are aimed at protecting the economy and are not insurmountable. He observed that the SEC’s behavior has changed over the past year, and Franklin Templeton has been actively engaging with them. Bayston expressed excitement about the agency’s shifting tone.
Franklin Templeton launched its Franklin OnChain U.S. Government Money Fund, also known as the “Benji,” in 2023. However, the journey to achieve this milestone involved a five-year collaboration with the SEC to educate them about the applications of blockchain technology in operating mutual funds.
Bayston drew a comparison between tokenized money funds and stablecoins. In this model, the saver provides money to the operator, who then invests it and returns the money along with the accrued profits. Bayston believes that this construct is similar to the coexistence of banks and money funds for several decades and is likely to continue in the future.
Bayston expressed a bullish outlook on cryptocurrency, stating that it is as important to investment portfolios as technology stocks were 30 years ago. Franklin Templeton filed its application for a spot Ether exchange-traded fund with the SEC, and although the decision was initially postponed until June 11, it was eventually approved on May 23, along with other applications. Bayston was not surprised by this decision, as he believed that the SEC was not trying to provide any advantage in the nascent cryptocurrency market.
Magazine:
Real AI use cases in crypto, No. 1: The best money for AI is crypto