full screen background image
Friday 17 November 2017
  • :
  • :

Perianne M. Boring Founder and President Digital Chamber of Commerce

Jay Addison Technical and Media Advisor for CryptoBiz Magazine interviews Perrianne M. Boring the founder and President of the Chamber of Digital Commerce The first DC-based trade association dedicated to promoting the acceptance and use of bitcoin and digital assets to public-policy makers. Boring is a sought-after speaker, and author of the “Boring Bitcoin Report,” a popular industry blog. Prior to forming the Digital Chamber, Boring served as an economic analyst in network cable news. Additionally, she worked as a legislative analyst on Capitol Hill, advising on finance, economics, tax and healthcare policy.
Produced by Trent E. Nellis Chief Operations Advisor CryptoBiz Magazine.
To subscribe go to www.cryptobizmag.com

Jay: This is Jay Addison from CryptoBiz Magazine. We are live in Las Vegas at the Inside Bitcoin’s convention. And we’re here with Perianne Boring, the founder and President of The Chamber of Digital Commerce. Perianne, how are you today?

Perianne: I’m great, how are you?

Jay: I’m doing great too, thanks. Do you think it’s possible to properly regulate Bitcoin in it’s current form?

Perianne: Well, Bitcoin is already being regulated. There’s about 10 federal agencies that have jurisdiction over digital currencies that we’re working with. And then also, all states have different jurisdictions over the industry as well. It’s very difficult to regulate such a nascent industry, because it’s so new. With Bitcoin only being five years old, there’s really not a lot of precedence set in the legal world for this industry, which we’re starting to see now. We’re seeing it with Department of Justice and the ICC, the FTC – all these agencies have brought cases against different Bitcoin companies. So that’s why extremely important to work with regulators. To educate them on what this is to make sure that these are new, innovative technologies, are being regulated in a way that’s fair to them, in a way that doesn’t hinder the technology.

Jay: What would an ideal set of Bitcoin regulations look like to you?

Perianne: I think there’s already plenty of regulation out there. What’s most important is working with the companies that operate in the space, making sure they understand where regulation would apply to their companies. We just saw last week, the director of (1:34?) did an interview with Coin Desk, where she said it was unfortunate that there’s exchanges that think that they’re operating under the radar. And some are thinking that this is going to foreshadow some enforcement action, because they said that, “If these companies think that they won’t start putting in compliance programs until enforcement happens, they’re willing to do that.” And it would be extremely unfortunate to see some of these companies brought down, because they didn’t understand where the law applied to them.

Jay: Yeah, that makes sense. When the NDFS regulations finalize, how close do you think it’ll look to the first public draft?

Perianne: We have several initiatives where we’re working directly with the Department of Financial Services to bring substantial changes to the proposed – that license, rules and regulations in its current form, it would be very hindering to small business and startups. And so, we petitioned the department to extend the comment period, which they did. And we’re also going to engage with Superintendent Ben Lowski (2:35?) on October 14th at Crodozo (2:37?) Law School. And we are putting forward different proposals of what we think state licencing should look like, and we will be applying a lot of pressure to the department to make changes that will not hinder innovation, about well set up guard rails, and we also make sure that Superintendent Ben Lowski (2:55?) does exactly what he keeps saying he’s going to do, which is set up guard rails but not hindering innovation. Which, unfortunately is not what we saw in the first proposal, but we do believe through working with him and the industry together, we can make sure that both the industry and the department’s codes are met.

Jay: Bitcoin evolves and moves extremely fast. Can regulation ever keep up with the innovation?

Perianne: That’s not traditionally how regulation is formed. Regulation always follows innovation, and it’s always when bad actors are abusing technology. So, any time that value is being transferred in the financial services industry is very susceptible to hackers. And that’s when, if companies don’t have appropriate compliance programs set up, so that their company or their technology, or their platforms are not being abused by bad actors. That’s when we start seeing – regulation comes in. So this goes back to my comment I said earlier about our efforts with the Chamber of Digital Commerce are working with the industry as well to making sure that they understand what laws apply to their company, so we can pre-empt further regulation.

Jay: When you speak with the policy makers about Bitcoin, what kind of understanding of the technology do they generally start with? Do you find yourself having to explain a lot of details?

Perianne: We speak with a lot of public policy makers, regulators and legislators, and we come in contact with people from all sides of the spectrum. We held the first ever Bitcoin education day on Capitol Hill just a few weeks ago where we brought in about 30 different people within the Bitcoin eco-system, and we briefed over 70 officers in the House of Representatives. And the comments that we’re getting are – range from – people are extremely skeptical, because they have heard of some of the scandals, including (4:53?) and Silk Road. All the way on the other side of the spectrum, we met people that were mining Bitcoin, that worked for the government.

Jay: Wow.

Perianne: So, it’s very interesting to see how, through this innovative technology, how it’s really spreading. It’s a peer to peer technology, and it’s reaching people in very interesting ways, even in government. People on Capitol Hill, it’s a lot of younger people that work there, and this technology is very much catching the attention of the younger generation. So it is extremely encouraging that a lot of the staff members of Members of Congress are finding out about it through social media or through different outlets. And some of them actually have first-hand experience with the technology, which is very encouraging.

Jay: That’s for sure.

Perianne: And will definitely help with the education push this outward.

Jay: You bet, hey. Why is it important to have an industry trade association?

Perianne: So, the industry has just matured this year to a point where it has formed formal representation in Washington DC. The Chamber of Digital Commerce was the very first trade association located and launched in Washington DC. And it’s important that we have formal representation, because government is getting very, very interested in this technology. We are almost every single day working with the ten different agencies or departments in the Federal Government, and all have working groups and are all looking into digital currencies. And it’s very important that they have accurate and reliable information, especially because Bitcoin is open source, and no one owns it. There’s no Bitcoin Headquarters. If the Department of Justice has a question on Bitcoin, who do they turn to? There’s not a Bitcoin Headquarters. So, as someone who used to work for a Member of Congress, I worked in the financial services industry. On the government side, we often relied on trade association for reliable third party non-biased information. It’s different when a company, and individual company comes in to meet with the government. It’s because they have a bias, and when you have a trade association, it provides that degree of separation between the company and the government, and we represent the industry as a whole. And we have a loud, a very credible, and the authoritative voice for digital currencies in Washington.

Jay: It sounds like you guys are doing some really great stuff, it’s fantastic.

Perianne: Thank you very much.

Jay: So one question, January 2015, January 1st – what do you think the price of Bitcoin’s gonna be? This is a trick question we ask everybody.

Perianne: Oh I hate to speculate on prices, what if they–

Jay: It’s all over the range, so you’ll fit in it with any price.

Perianne: Well I’m not gonna put a price point out, but what I will say is that today the market capitalization is hovering around 4 billion dollars. And for the industry to be taken serious, it needs to put serious resources into Washington. So, if we even put one one thousandths of the resources, of the amount of the market capital we are today, we can help grow the industry into the trillion dollar range. And one of our goals of the Chamber of Digital Commerce is to grow this to a trillion dollar industry by 2020. And we will help provide those resources by working with regulators to write the regulatory structure, to allow this industry to thrive.

Jay: A special thanks to Perianne Boring, the founder of the Chamber of Digital Commerce, thank you.

Perianne: You’re welcome, thanks for having me.

This is Jay Addison from CryptoBiz Magazine, live from Meckler Media’s Inside Bitcoins Conference in Las Vegas. Remember to subscribe to CryptoBiz Magazine at CryptoBizMag.com. Follow us on Twitter @cryptobizmag. Thanks for joining us, and learn more at CryptoBizMagazine.com.

Produced by Trent E. Nellis Chief Operations Advisor CryptoBiz Magazine.
To subscribe go to www.cryptobizmag.com