TradFi obsession with permissioned blockchains is ‘race to the bottom,’ Etherealize CEO Vivek Raman warns | Crypto Regulation News
Crypto regulation news: TradFi obsession with permissioned blockchains is ‘race to the bottom,’ Etherealize CEO Vivek Raman warns. This update explains what changed, why it matters for the crypto market, and what investors, exchanges, and blockchain companies should watch next.
Crypto Regulation Update
Similar systems, however, have been around the blockchain space for years in one form or another. Early adopters may recall the reams of banks that joined R3’s consortium effort back in 2016, for example, or the many enterprise players that flocked to the Linux-affiliated Hyperledger ecosystem. R3 didn’t make it to the end of the year before the big banks like Goldman Sachs, Morgan Stanley and Santander withdrew from the system.“It’s like we’re having consortium chain 2.0,” said Raman in an interview. “This is going to end up being a race to the bottom for consortium chains. You’re going to have consortium chains versus consortium chains.”Raman likened Ethereum’s mainnet to Hypertext Transfer Protocol, or HTTP, the base layer of the internet itself. A more secure, permissioned, privacy-enabled layer, HTTPS, sits on top. An open base layer is necessary, Raman said, because that’s the only way you can have maximum interoperability and maximum liquidity in one place, he said.“We strongly believe, and always have done, that you need a global, open, permissionless infrastructure as the base layer,” Raman said. “Then you can build all the permissioning on top of it. Whether that’s at the app layer, whether that’s the L2 layer, that’s where you should have the customizability.”
Why This Crypto Regulation News Matters
First, this development may affect exchanges, token listings, stablecoins, compliance rules, and market sentiment. In addition, it may influence licensing, reporting requirements, and future enforcement actions. As a result, traders and investors should watch the next legal and policy steps closely.
What to Watch Next
Watch for follow-up statements from regulators, court filings, exchange responses, and policy updates. In particular, any new guidance on licensing, enforcement, or stablecoin rules could have a direct impact on the broader crypto market.
