Draper Co-Founder Fisher Jurvetson Believes ‘Coercive Regulation’ Hurts Innovation

American venture investor Tim Draper spoke about the regulation of the crypto market and the prospects for artificial intelligence (AI). The capitalist considers the SEC’s approach in the context of organizing the process of monitoring and controlling the industry to be wrong.

Draper pointed out that the regulator has recently instilled fear and ousted innovators from the United States. According to him, such a policy can lead to the fact that in 40 years the country will become a “desert” instead of a technology center.

Draper believes that “enforcement regulation” harms innovation and may force IT companies to move to other jurisdictions with a more loyal regulatory environment, such as Dubai or Singapore.

The investor is sure that the crypto industry should be regulated differently. To do this, it is necessary to create special structures, since the existing rules are based on an 80-year-old test (the Howie test), which, in principle, has nothing to do with digital assets.

Draper believes that the SEC’s actions against Coinbase, despite the company’s attempts to comply with the laws, are hurting the US. When asked about the future of AI, the venture capitalist showed optimism. He believes technology will change many industries, including education and daily tasks.

The creator of Uniswap, Hayden Adams, also considers the approach of the American authorities to the regulation of the cryptocurrency industry “not very thoughtful or good”. According to him, other states, for example, are trying to study DeFi and understand the principles of the technology, but in the US this topic is mainly used for political speculation.

The founder of Uniswap believes that the US is seriously lagging behind France and the UK, which are more consistent in their DeFi regulation policy. Both states are actively engaged in the development of a new regulatory framework for the cryptocurrency industry, taking into account all its features.