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Jay Clayton (Chairman of the SEC) was talking about this last week. He was saying that the cost / overhead difference between ICO and IPO is so large that they
by gtlondon 8y ago
Jay Clayton (Chairman of the SEC) was talking about this last week.
He was saying that the cost / overhead difference between ICO and IPO is so large that they either need to make IPO'ing easier or perhaps integrate into crypto in future -- otherwise companies will just ICO instead.
So it could be that crypto helps traditional systems, while reducing costs for both parties.
- charlesdm 8y agoYes, absolutely. ICOs are the wild west right now, but I think most developed countries will eventually introduce IPO-light regulation for token issuers so that this becomes a completely legal and viable way to raise capital. Mind: this is longer term, not for tomorrow. Legal and other costs should come down a lot as well, as these things will end up being more standardised. You won't need to pay millions in legal fees, perhaps tens or (at most) hundreds of thousands. In general I think the value in crypto will come from offering liquidity in certain situations by tokenising (perhaps smaller) assets (e.g. make it easy to sell a property ownership share with rental income in a SF office building through some token to an investor in Germany), and generally making a lot of "expensive" things more efficient by cutting out the middleman.
- estro 8y agoDo you have a link for this discussion? This is interesting.
- gtlondon 8y agoI can find a shortened version of the full interview: https://youtu.be/wFr1ooaVPjY?t=8m59s https://youtu.be/wFr1ooaVPjY?t=8m59s IPO stuff is from 9 mins, but the whole video is crypto related / fairly interesting.