Is Counterparty viable given our regulatory environment?

Is Counterparty viable given our regulatory environment?


What's up party people? Chris DeRose here, Community Director of the Counterparty Foundation. Today I am in Vizcaya. It is a nice spot here in downtown Miami with a lot of history. And today I want to talk about, is Counterparty really viable given all of the regulatory requirements of traditional exchanges? And this was posed to me today by a friend who really has been looking into it. He is really excited about it, but he is like "Ah, I don't know. Does Counterparty make sense because of all of the rules and such about running an exchange?" So, let's talk about that.

Let's explore that. So, I definitely see that people equate Counterparty to the New York Stock Exchange, which is a wonderful comparison. And it may very well even be true. But all of the regulations that apply to running an exchange of that magnitude and of that level of importance are in fact significant. But at the very base level, Conterparty does things that are completely independent of stocks and bonds and ETFs and such. It can be used for just anybody on their own website for all kinds of things.

Like user tokens of any really small capacity which require nothing in the terms of any traditional regulations. Things like karma points or up votes or something like that, Counterparty will work really well for that. So, off the bat, there's definitely many, many uses of Counterparty that have nothing to do with the traditional financial systems. And so, certainly in those markets, I think that, "Yeah, of course, Counterparty is going to work because it is easy and it's fun and it's quick and it solves problems." So, let's build upon that though. So, there will come a time when, yeah, Counterparty does start to chip away at some of the more traditional financial applications for user tokens, shares, and these types of things.

And will it be viable? Well, certainly the people that are going that direction are taking a risk. We've seen a lot of people out there throwing various SEC allegations around. For the people who have not been doing their due diligence and their requirements in a regulatory capacity. Now, what's being done to solve those problems is the Medici Project. The Medici Project is a very tight-lipped project right now and even I don't know very much about it. But, what I do know is that they have hired a whole team of lawyers and that they do intend to file paperwork that will begin the process of the regulatory integration on the Counterparty Foundation with some of the more traditional financial applications for an asset market.

So, yeah, I think so. I think that we will see even to that degree a lot of progress being made in terms of Counterparty's use for the traditional applications of financial markets. But, two, I think it is important to step back and say to ourselves, "Well, you know, there is a big world out there and it's not even that America is a very large part of that world. We are a very small part of that world." So, we think that maybe, or even certainly, that Counterparty will find its use outside of the United States in markets where the regulatory requirements are minimal and failing even. So, I think that there is a lot of application for Counterparty that are just outside of the American systems.

And, who knows, maybe it will take of there and these financial terms first. That's part of why I find this project so exciting. There's just so much potential and there are so many tools and there is so much out there that we can start pulling from. So, I think that in all these senses the regulatory stuff will need to shake up a little bit. There will be some pressures there. There may be a scandal of some minor kind.

But, all of that is agnostic to Counterparty, the platform. It is entirely incumbent upon the people that are using Counterparty and how they choose to pursue their interests in this asset exchange and in this asset marketplace. So, that's it. That's the question and tell me what you think. Put some comments in the bottom of the screen here. Tell me if you think I got it wrong or if you think I got it right.

Certainly, I always love your questions, so keep on asking questions. And tweet them to me at DeRoseTech on Twitter or by email. And subscribe to the channel if you like this video and you want more questions answered.