The issue of the crypto-industry regulation is still open in many countries around the world. And if in some countries the legislation in this area is already in full operation, other governments of the world still do not fully understand what Bitcoin is, for example. On July 18, the US Congress held hearings on the crypto industry. One was carried out by the US Senate Committee on Agriculture, and the other – by the Committee on Financial Services of the House of Representatives.
The approaches during the discussion appeared to be diametrically opposite: some were very positive when speaking about the crypto-industry, while the other reflected all prejudices and conservative views.
Positive attitude towards cryptocurrency and desire to understand all the intricacies of the industry was demonstrated on the first hearings since the very beginning.
Primarily, there was raised the question of giving the definition to Bitcoin at the meeting. At the moment, various US agencies have different views on the crypto industry. If the Securities and Exchange Commission (SEC) considers cryptocurrency as securities, then the Futures Trading Commission (CFTC) has to consider them as goods.
Therefore, during the hearing, it was suggested to provide digital tokens with a special, "fluid" legal status. During the ICO, it can become an "investment agreement", thus falling under control of the SEC.
Then, after you start using them in blockchain, they can become relevant to the CFTC having changed its legal status and economic meaning. This innovation can help with ethers definition. The fact that, according to some rumors, last year's token has been classified as "safe". However, this generates a paradox, because if this is true, the ICO conducted several years ago will be considered illegal.
According to the managing partner of Andreessen Horowitz private US venture capital company, Scott Kupora, Bitcoin – is the best friend of law enforcement agencies, because one way or another, even anonymous transaction can still be traced.
The audience and the speakers touched the topic of blockchain influence on the modern world. So, according to the senior lecturer at the MIT Sloan School of Management, Gary Gensler, decentralization is not really a problem for most users, but, as he said, it looks pretty ironic that the basic technology has remained decentralized, while the rest of the industry is concentrated in the hands of a few large centralized exchange platforms. Daniel Gorfin from LabCFTC stressed that although the crypto industry allows peer transactions, the majority of the transaction types are carried out through a new type of intermediary, where there might come into play AML and KYC.
On the other hand, not all those sitting in the hall were so well disposed towards digital currencies. Some, apparently, did not fully understand the basic concept of crypto industry.
However, the former chairman of the CFTC, Gary Gensler, immediately objected to him, reminding the evolution of money:
In general, a hearing took place in a fairly optimistic vein. Many of the participants came to the conclusion that the industry needs to "soft regulation", but this should be done very carefully, by all possible means trying to avoid shock situations.
9 Months ago at Articles