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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:

• Securities Act of 1933

• Securities Exchange Act of 1934

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