While the SEC is focused on safeguarding the economy, Roger Bayston, Franklin Templeton's head of digital assets, observes a notable shift in the regulator's tone.

Financial innovators need to adopt a long-term perspective when dealing with the United States Securities and Exchange Commission (SEC), says Roger Bayston, head of digital assets at Franklin Templeton. Speaking at the Consensus event, Bayston shared insights with Cointelegraph’s Turner Wright, emphasizing that the SEC, like many regulatory bodies, relies heavily on legal precedents set by courts.

Bayston acknowledged that while there is often skepticism regarding the SEC’s “open door” policy, he views the agency’s actions as crucial for economic stability and not insurmountable. “We wouldn’t be in business for 76 years — the business of trust — if we didn’t have some discipline and persistence and collaborative behavior with the global regulators we face,” he stated.

Bayston noted a positive change at the SEC compared to previous years, highlighting that they have been “pleasantly engaged with the SEC” and are excited about the agency's evolving tone.

In 2023, Franklin Templeton launched its Franklin OnChain U.S. Government Money Fund, known as “the Benji.” Bayston described the nearly five-year journey with the SEC to bring this product to market, which involved extensive efforts to educate and illuminate the potential uses of blockchain technology in operating mutual funds.

Bayston likened tokenized money funds to stablecoins, explaining that both involve an operator receiving money from a saver, investing it, and then returning the money with profits accruing to the operator. He noted that banks and money funds have coexisted for decades and believes this model will persist in the evolving financial landscape.

Franklin Templeton is optimistic about the future of cryptocurrency, with Bayston suggesting that properly structured crypto tokens hold significant value. He drew a parallel between the importance of crypto in today’s investment portfolios and technology stocks 30 years ago.

Franklin Templeton filed its application for a spot Ether exchange-traded fund (ETF) with the SEC later than other applicants. While the agency initially deferred a decision on this application until June 11, it approved the fund on May 23. Bayston was not surprised by this outcome, noting that the SEC’s actions were aimed at maintaining a level playing field in the emerging market.

“We believe in the technologies and therefore we believe that the [crypto] tokens, properly structured, represent value for these technologies,” Bayston concluded.