Hester Pierce States Cryptocurrency Investors have to make their own DecisionsAugust 6, 2019
SEC Commissioner Hester Pierce stated, “We need to allow people that are interested in this space [crypto] to be involved with it in a way that is within the regulated framework. Understanding that investors have to make their own decisions, we can’t make those decisions for them.”
Blockchain innovation in America has been often stifled by growing discontent among cryptocurrency businesses in the country due to the patchwork of Federal and State laws.
Dire warnings have been issued in the form of US cryptocurrency regulations. Several cryptocurrency platforms are geofencing US traders. And, the US is very slow to embrace innovation.
The SEC has been attempting to maintain the decade-old regulation in order to fit the cryptocurrency asset class.
Jay Clayton, SEC Chairman has been consistently holding the view that Initial Coin Offering (ICOs) tokens are to be categorized as Securities.
Putting the ICOs as a Security puts the country at disadvantage when it comes to adopting the digital economy. Several other countries like Asia and Europe have taken remarkable steps when claiming their positions in the evolving cryptocurrency landscape. If the US does not adopt significant changes, then it will fall behind these countries in the processes of cryptocurrency adoption.
The SEC commissioner opines that regulators will have to create an enabling government facilitating innovation where it would be best to leave the product testing to the market. The commissioner also felt that the regulators should have positive relationships by balancing cryptocurrency projects.
Steve Mnuchin, US Treasury Secretary stated that the regulators like the SEC should collaborate in developing crypto-specific laws which will suit the country without compromising on adoption.
While the regulatory frameworks concerning cryptocurrency has developed differently in different areas of the world, the United States has not captured a leading position in the cryptocurrency market place due to its regulatory restrictions.
US being the economic powerhouse has been facing regulatory challenges when it comes to enabling a regulatory landscape for the country. There are different regulatory agencies and each of them take a different stance towards the crypto.
The IRS previously proposed to treat, “as property for U.S. federal tax purposes.” The U.S. Treasury Department’s Financial Crimes Enforcement Network recently classified Bitcoin as “an example of a decentralized virtual currency.”
With each regulator putting forth different legal and tax requirements, there is a lack of clear regulatory framework for cryptocurrency development in the US. Therefore, cryptocurrency investors make their own decisions.