Progressive Proposal In U.S. House of Representatives
December 21 2018 - 1:46PM
InvestorsHub NewsWire
Bitcoin Global News (BGN)
December 21, 2018 -- ADVFN Crypto NewsWire -- Since Bitcoin’s
creation the U.S. has been the stage for the majority of headlines
relating to cryptocurrencies. As the global center for finance, the
state of New York has been at the forefront of much of the
government regulation relating to cryptocurrencies. However, much
of the language is related only to cryptocurrencies as financial
instruments. This narrow view of the technology has allowed many
other countries around the world to take the lead in regulation for
the more broad industry of blockchain technology.
In contrast to countries like
Malta, Switzerland or Sweden, the government regulations in the
U.S. have made it difficult for blockchain technology related
businesses to flourish. But the potential benefits from these
businesses and the technology they are developing is becoming more
apparent. In September a bill was proposed to the U.S. House of
Representatives to cover the spread in a more positive way. It
incorporated three major components for the U.S. to transition to
representing:
-
Acceptance - "expresses support for
the industry and its development… a light touch, consistent and
simple legal environment"
-
Security for cryptocurrency miners
- "never take control of consumer funds"
-
Tax clarity - A "safe harbor" for
taxpayers relating to network hardforks.
"The United States should
prioritize accelerating the development of blockchain technology
and create an environment that enables the American private sector
to lead on innovation and further growth." - Tom Emmer
The bill has not since been
adopted, however a new proposal is showing more signs of reception.
The bill has a more focused intention, and presents a more
digestible possibility for change.
Token Taxonomy
Act
Warren Davidson and Darren Soto
make a proposal where “digital tokens” would be excluded from
financial definitions as securities. The bill overall is a perfect
representation of the clash that is happening with cryptocurrencies
in relation to the traditional fiat currency system. Both bills
that would require amending through their proposal were put in
place over 80 years ago:
Digital tokens would be defined as:
“digital units created… in response to the verification or
collection of proposed transactions” (mining, basically) or “as an
initial allocation of digital units that will otherwise be created”
(as in a pre-mine). These tokens must be governed by “rules for the
digital unit’s creation and supply that cannot be altered by a
single person or group of persons under common control.” So,
although this proposal is closer to something that could be adopted
in the U.S., it will likely take more time for laws like this to be
amended.
By: BGN Editorial Staff
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