A blockchain association run by Kristen Smith is trying to connect with the White House. The main task is to establish regulation of US cryptocurrencies. Smith says the association she leads is trying to show that cryptocurrencies can do more than just “fund crime.”
Regulation of cryptocurrencies in the United States: prospects
Smith claims her organization has already met with Treasury officials. “We hope to speak with Treasury Secretary Janet Yellen or Deputy Minister candidate Wally Adeyamo in a few weeks,” Smith said. She added that Adeyamo will be the chief specialist in cryptography and other technology issues.
“Our priority is to help Yellen understand that cryptography goes beyond financing the underworld,” Smith said. “We want her to understand the value of crypto networks”
Yellen recently stated that bitcoin (BTC) is “highly speculative” and “an extremely inefficient way to conduct transactions.” She expressed concern about the “growing problem of cryptocurrency misuse.” While she herself is not very well versed in blockchain technology, she said of BTC, “to the extent that it is used, it is not acceptable. BTC is mainly used for illegal financing. ”
Industry regulation issues
This attitude does not please cryptocurrency supporters. They fear that keeping the nascent industry at the same standards will seriously impede innovation.
One example of this is the so-called “travel rule”. It requires financial institutions to comply with the reporting procedures provided for by the Bank Secrecy Law. Its purpose is to make sure that banks control their transfers and do not allow money laundering. Proponents argue that larger cryptocurrency exchanges like Coinbase already have control over their transactions. However, they believe that individual wallet holders should be exempt from such regulations.
“We’re not opposed to regulation,” said Adam Trideman, CEO and co-founder of crypto app BRD. “But we need time to stimulate innovation,” he continued.
Moratorium on regulation
Cryptocurrency proponents are hoping for a moratorium or temporary deferral of regulation. A similar precedent already existed in the 1990s. In the early Internet era, the Communications Integrity Act was passed to protect emerging tech companies. In particular, section 230 prohibits suing social media for content posted by users.
- Defenders hope to release one aspect of cryptocurrency use.
- “One of our main goals is to exclude crypto transactions from most regulations,” Trideman said.
- “If crypto transfers comply with bank transfer regulations, it will hurt the industry.”