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The Cornell University professor who was among the first to warn about the vulnerabilities that led to the collapse of The DAO has issued new statements on a ruling today from the US Securities and Exchange Commission finding the project had indeed issued securities.
A prominent public critic of the project, Emin Gun Sirer was vocal about issues with the project, though his statements often pointed to weak points in its technical design. At the time, he called out issues in the project’s voting mechanisms, alongside possible attacks that could be launched against its code (and eventually were).
In remarks following the SEC’s statements today, Sirer cautioned that the SEC ruling could have a similar impact, noting that it was likely to have a “chilling effect” innovation.
However, ultimately, he said it is likely to usher in a new, more tempered era of industry development, one with more sustainable, long-lasting project development.
Sirer told CoinDesk:
“This portends the end of the beginning for blockchains. We can no longer count on regulators not understanding what a blockchain is, nor can people use the veneer of a block-oriented data structure to subvert the law. In turn, it represents public acceptance of on-chain financial instruments as being equivalent to traditional ones.”
Overall, Sirer predicts the ruling will have a “chilling effect” on the future of ICOs, though one from which he believes the industry can recover.
Looking ahead, Sirer sought to position it as a call to action for the industry,
“In the next chapter, we will see the cryptocurrency community focus more on its competency, innovative technology, and less on disguised financial instruments, and we will see the financial incumbents challenged by fundamentally innovative technology that can do what has never been done,” he said, concluding:
“We excel at novel technology, not in recreating boring old investment funds under a fancy cover.”
Emin Gun Sirer image via CoinDesk archieve
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