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- The issue of crypto regulation in the United States has been a hotly debated topic for several years, with conflicting opinions on how best to approach this emerging industry.
- While the Securities and Exchange Commission (SEC) has been responsible for regulating securities and commodities for decades, there is growing sentiment that Congress should be the one to determine the regulatory framework for cryptocurrencies, not the SEC.
Know the reason
This sentiment has been echoed by the Blockchain Association, a trade association representing the blockchain and cryptocurrency industry. The Blockchain Association has been advocating for clearer regulatory guidelines that would enable the industry to thrive and develop without fear of legal repercussions.
One of the main arguments put forward by the Blockchain Association is that cryptocurrencies should not be classified as securities, as the SEC has suggested. Instead, they argue that cryptocurrencies are a new asset class that requires a different approach to regulation.
At the heart of this argument is the idea that cryptocurrencies are fundamentally different from traditional securities, as they do not represent ownership in a company and do not generate dividends or other forms of income. Rather, cryptocurrencies are designed to function as a means of payment or store of value, similar to traditional currencies like the US dollar.
Because of this fundamental difference, the Blockchain Association believes that cryptocurrencies should be subject to a different regulatory framework than traditional securities. They argue that the SEC’s current regulatory approach is too restrictive and does not take into account the unique characteristics of cryptocurrencies.
Instead, the Blockchain Association proposes that Congress should take the lead in regulating cryptocurrencies, as they are better equipped to create a regulatory framework that is tailored to this new asset class. This would involve creating a new regulatory agency that would be responsible for overseeing the crypto industry and ensuring that it operates in a safe and transparent manner.
This approach has been met with mixed reactions from lawmakers and regulators. Some have expressed support for the idea of a separate regulatory agency for cryptocurrencies, while others believe that the SEC is best equipped to regulate the industry.
However, there is growing recognition that the current regulatory framework is inadequate for cryptocurrencies and that new approaches are needed. In recent years, several bills have been introduced in Congress that seek to clarify the legal status of cryptocurrencies and create a regulatory framework for the industry.
The Blockchain Association’s proposal for Congress to take the lead in regulating cryptocurrencies is a promising one, as it recognizes the unique characteristics of this new asset class and seeks to create a regulatory framework that is tailored to its needs. Whether or not this proposal is ultimately adopted, it is clear that a new approach to crypto regulation is needed, and it is up to regulators and lawmakers to find a way forward.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
