Two Pieces of Legislation to regulate cryptocurrency From Darren SotoFebruary 5, 2019
Market capitalization is not the right yardstick to assess the value of cryptocurrency. The market is forever contemplating the price of asset futures and related technological developments. There are first general blockchain products and second generation blockchain products. It is going to be a multi-token ecosystem for the future.
Mati Greenspan of Etoro recently stated “Trying to measure the value of the crypto network using market cap is like evaluating the health of a person based on his body weight.”
Regardless of market capitalization or rank, every token has attracted a fair share of criticism. Of all Bitcoin is considered to be the most egalitarian.
Several venture capitalists are willing to start with the launch of a fair coin. Some of them are waiting with the rashest projects and bright minds trying to identify the best way to start with a cryptocurrency. There is a widespread belief that transformative technologies will enrich the lives of the developers and investors, but that is not the case.
The success of a token is based on the politics of value defining the token. Some early Bitcoin investors are now into Altcoins. So, what are investors looking at when choosing the cryptocurrency? Are they looking at the incentives?
And some governments like the Government of India are worried about the value of their domestic currency going down with the coming of cryptocurrency. While cryptocurrencies do not currently pose a financial threat, the panel members who are drafting the crypto regulations for India are worried.
So, there is a lot to the coming of cryptocurrencies right from the framing of the white paper, launch, sale, regulation and more.
The market expectations are evolving with time. The Reserve Bank of India opines that cryptocurrencies need constant monitoring for their influence in the overall financial stability considerations, given the rapid expansion of their usage in the society. The reaction is not the same across the globe.
Darren Soto has been trying to tackle the growing popularity of virtual coins by two pieces of legislation; “The Virtual Currency Consumer Protection Act of 2019and U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2019.” The main purpose of the legislation is to prevent the price manipulation of virtual currency.
He recently stated, “Virtual currencies and blockchain technology have a profound potential to be a driver of economic growth.”
The different ways to deal with the growing popularity of cryptocurrency has been on the radar of the Congress for many months.
Soto also opined that the United States should ensure the financial well-being of the virtual currency investors. This to promote innovation while maximizing the advances in technology.