Business

Legal Limbo: U.S. Blockchain Regulations Fragmented and Undeveloped

U.S. regulators have ignored blockchain and digital currencies over the past years, resulting in uncertainty and high compliance costs for businesses and investors. But state-regulators have now started to move.   

The U.S. is by far the largest blockchain market in the world, with U.S. companies investing twice as much as their European counterparts and about three times as much as Chinese companies in 2019. Still, regulators have mostly neglected the legal challenges and opportunities brought about by the new technology, with President Trump himself stating he was “not a fan of Bitcoin” and not including any blockchain initiatives in his current budget proposal.

The lack of attention by the federal government and many state leaders has resulted in a fragmented – and in many aspects even completely undeveloped – regulatory framework. That’s a challenge for both blockchain businesses and investors, as nobody knows if business models and technologies developed today will remain economically feasible or even legal in case the government introduces new regulations.

“It depends on whom you ask” does not work as a regulatory approach   

As Washington has not formulated any clear direction, regulatory agencies have set their own policies and guidelines. The challenge: Each agency has its own point of view.

The U.S Treasury Department’s Financial Crimes Enforcement Network (FinCEN) considers Bitcoin as “an example of a decentralized virtual currency,” and the U.S Commodity Futures Trading Commission (CFTC) considers digital currencies as commodities. The Internal Revenue Service (IRS) announced that cryptocurrencies were “property for the U.S federal tax purposes” and the SEC has issued its own guidelines for digital currencies as well.

The election in November 2020 could eventually bring changes and more clarity, depending on who wins. Some of the Democratic candidates have vowed to regulate the sector. Billionaire presidential candidate Mike Bloomberg – who has been surging in the polls as of late – writes in his financial reform policy document:

“Cryptocurrencies have become an asset class worth hundreds of billions of dollars, yet regulatory oversight remains fragmented and undeveloped.”

State regulators are taking action

In light of the federal government’s no-show, some states have introduced progressive regulations on their own. California and New York, which are both home to a large number of crypto businesses, are leading the pack. Wyoming and Arizona have also become two of the most progressive states.

On 20th February, Assemblywoman Yvonne Lopez proposed the Digital Asset and Blockchain Technology Act to the New Jersey state legislature – intending to establish new requirements for digital currency businesses and step up consumer protection.

Jeff Barroga, Digital Marketing Officer at Paxful, says:

“As more and more elected officials are finally seeing blockchain technology in a positive light, you can expect more pilot projects to be launched in the coming months.”

As states move ahead, it’s only a matter of time until federal regulators will take action as well. The upcoming election could also bring a sudden change in attitude. And President Trump might change his point of view as well – his son-in-law and senior advisor Jared Kushner owns Bitcoin after all.

Tags

Lukas Hofer

Lukas J. Hofer is a business writer and has years of experience in financial services and international business. He has a proven track record working with leading international companies and currently works as independent business consultant in Asia.

Related Articles

147 Comments

  1. how much does cialis cost After a long time, Liu Yang suddenly raised his head and said, If there is not enough land in the country, I will find a way to open up new land for the landless Increase Sexual Desire cheap ed meds online people to cultivate and make a living Speaking, seems to realize something, and cheap ed meds online then asked Is this the reason why you are raising troops abroad and expanding to the Quartet What do you think In Best Man Enhancement Pill cheap ed meds online the face of Liu Yang s question, Emperor Liu s reaction is worth cheap ed meds online remembering

  2. what std does doxycycline treat These top hits were chosen based on the fact that a lower percentage of viable cells remained compared to the other natural antimicrobials used in this study as well as exhibiting significantly better activity compared to the current antibiotics used to treat Bartonella infections, including AZI, DOX, GEN, and RIF, as indicated by the statistically analysis that the P value was 0.

  3. Helle SI, Mietlowski W, Guastalla JP, Szakolczai I, Bajetta E, Sommer H, Baltali E, Pinter T, Csepreghy M, Ottestad L, Boni C, Bryce C, Klijn JG, LГёnning PE stromectol stock ImportinО± ОІ and XPO1 mediate the nucleocytoplasmic transport of hundreds of different proteins

  4. stocks declined onFriday, putting the S P 500 and Dow on track for their firstweekly drop in four, as congressional Democrats and Republicansstruggled to pass a federal budget to avert a governmentshutdown days away stromectol reviews 2009 Mar; 113 3 655 662

  5. A motivating discussion is worth comment. There’s no doubt that that you ought to write more on this issue, it might not be a taboo subject but typically folks don’t talk about these topics. To the next! Cheers!!

  6. Nice post. I was checking constantly this blog and I’m impressed! Very useful information specifically the closing section 🙂 I handle such info much. I used to be looking for this certain information for a long time. Thanks and best of luck.

  7. A fascinating discussion is worth comment. I think that you should publish more about this issue, it may not be a taboo matter but typically people do not speak about these issues. To the next! Kind regards!!

  8. For example, should a high grade cancer with 1 to 10 ER expression, 0 PgR expression, and human epidermal growth factor receptor 2 HER2 negative results be considered for treatments designed for triple negative cancers buy zithromax online overnight shipping Similar single or double immunofluorescence labeling studies were performed using total or pERK1 2 1 100; Cell Signaling Technology, renin 1 100; AnaSpec, and aquaporin 2 antibodies 1 100; sc 9882; Santa Cruz Biotechnology

  9. It’s too bad to check your article late. I wonder what it would be if we met a little faster. I want to exchange a little more, but please visit my site slotsite and leave a message!!

  10. Thank you, I have just been searching for information about this topic for ages and yours is the greatest I have discovered so far. But, what about the bottom line? Are you sure about the source?

  11. I beloved up to you’ll obtain carried out proper here. The comic strip is attractive, your authored subject matter stylish. however, you command get bought an shakiness over that you wish be turning in the following. ill surely come more in the past once more as precisely the same just about a lot incessantly within case you protect this increase.

  12. Hiya very cool website!! Man .. Excellent .. Wonderful .. I’ll bookmark your web site and take the feeds also…I’m happy to search out so many useful info here within the submit, we need develop extra strategies on this regard, thank you for sharing. . . . . .

  13. Mein Bruder empfohlen Ich könnte diese Website mögen. Er war ganz recht. Dieses posted hat mir eigentlich den Tag versüßt. Sie nicht überdenken einfach wie viel Zeit ich für diese Information aufgewendet habe! Danke!

  14. Intracellular distribution of PPARОі was observed in BC tissues and cell lines 41, suggesting that poorly differentiated samples and highly invasive cell lines displayed mainly cytoplasmic PPARОі expression cialis 5mg online

  15. Current scientific data suggest that maintaining good oral health care in patients at risk of or from VGS IE has a major impact on preventing bacteremia with VGS from routine daily activities such as toothbrushing cialis generic NDC 0310 0720 10

  16. Where as lymph oedema is known to develop years after the initial treatment, the Swedish study concluded that the majority of cases with reduced range of motion would develop during the first postoperative year cheapest cialis online 9 hours after randomization

  17. What i do not realize is in reality how you’re now not really much more neatly-favored than you may be now. You are very intelligent. You already know therefore significantly on the subject of this topic, produced me individually consider it from a lot of numerous angles. Its like women and men are not interested except it’s one thing to do with Woman gaga! Your own stuffs outstanding. All the time maintain it up!

Leave a Reply

Your email address will not be published.

Close