The surge in cryptocurrency acceptance calls for regulation according to the US bipartisan legislators.
Cryptocurrency has been established in many countries around the world whether it is regulated or not. The virtual currency has many uses and both investors and users make sure they get the most out of their crypto.
Russia has already given cryptocurrency the green light and some of its online markets now buy and sell in crypto. Venezuela created their own crypto called the Petro, while the Kingdom of Saudi Arabia is expecting a lucrative business as it collaborates with the United Arab Emirates to officially release next year its own digital currency.
However, if there are advantages there are also advantages. That is why different sectors from every country including the US that embraced cryptocurrency proposed rules to protect consumers and make their nation competitive. This could be perfect now that the state of Ohio is now accepting cryptocurrency as tax payment and many commodities and services can now be paid or purchased using digital currency.
In the US, regardless of their parties, House members are proposing bills to forestall fraudulence, safeguard consumers, and make certain that the county will not lose ground as a leader in the worldwide digital asset class.
The bilateral bills did not provide any particular measures regarding how those goals shall be accomplished. It rather sought the Commodity Futures Trading Commission (CFTC) to suggest recommendations.
The first bill co-sponsored by Democrat Rep. Bonnie Watson Coleman (NJ), contemplates on the Attorney General’s adjudication. The “Virtual Currency Consumer Protection Act” will require the CFTC to establish a report reviewing the possibility for price control in cryptocurrency and its impact on the economy.
The second bill, the U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2018 will focus on ascertaining the nation remains competitive in the cryptocurrency industry. It informs the CFTC to carry out a comparative analysis of overseas crypto regulation and develop endorsement for regulatory changes.
“Virtual currencies and the underlying blockchain technology has a profound potential to be a driver of economic growth. That’s why we must ensure that the United States is at the forefront of protecting consumers and the financial well-being of virtual currency investors, while also promoting an environment of innovation to maximize the potential of these technological advances,” said both Reps. Darren Soto, (D-Fla.) and Ted Budd, (R-NC) in a statement.
The initial coins offerings (ICOs) is a cryptocurrency fundraising approach that started drawing retail investors that spend billions of dollars at the end of 2017. Legislators and watchdogs alike were caught off guard because ICOs came to be scams wholly supported by speculative concept or none at all.
Currently, the CFTC governs the largest and most dominant cryptocurrency – Bitcoin and Ether. The Securities and Exchange Commission (SEC), on the other hand, keeps an eye on other digital currencies in the market. The latter took tough actions with clearances on everything from shakedown to record initial coin offerings as securities.
This could be the best time for those recommendations so that Ohioans could make the most out of their cryptocurrencies. The state claims that it is the first in the nation to accept cryptocurrency. It is also interested in having a tokenized economy which is already going on at several different levels of administration.