The new kids on the block are now a decade old. The cryptocurrency sector has been around for more than a decade now, and as they continue to grow, more countries around the world are looking for ways to regulate the sector.
Due to the complexities of cryptocurrencies, countries are finding it hard to regulate them properly. In the United States, we don’t have a precise cut regulation for the cryptocurrency sector. However, famous personalities have been calling for that to change. The demands have gotten louder this year, with more people asking for the government to roll out clear-cut regulations so that the US wouldn’t be left behind in the digital economy.
Bloomberg Proposes Clear cryptocurrency Regulatory Framework
Presidential candidate and former mayor of New York, Michael Bloomberg, is one of the famous figures to talk about a proper regulatory framework for the cryptocurrency sector in the country. He published a financial reform plan earlier this week, where he calls for an increase in consumer protection measures and a robust financial system.
In his proposal, he mentioned that cryptocurrencies had become an asset class worth billions of dollars but regulatory oversight in the industry remains fragmented and undeveloped. He plans to clarify the agencies that are in charge of overseeing the cryptocurrency space and creating a framework that would recognize tokens as securities. This way, tax regimes would be clarified and consumers would be protected from cryptocurrency-related fraud.
SEC Commission Hester Peirce Proposes Token Safe Harbor
Hester Peirce, a commissioner at the Securities and Exchange Commission, has been a big proponent for the cryptocurrency space. Often referred to as ‘Crypto Mom,’ Peirce has been advocating for a regulatory framework for the cryptocurrency industry.
Recently, she proposed a securities law safe harbor for cryptocurrencies and token distribution. The proposal aims to balance the goals of protecting token investors and providing the regulatory flexibility that allows entrepreneurs in the crypto sector to carry out beneficial projects. This will make the US an attractive destination for cryptocurrency businesses despite the lack of a clear regulatory framework in place at the moment.
The regulations of cryptocurrencies might come soon as the United States Treasury Department’s Financial Crimes Enforcement Network (FinCEN) revealed last week that it is planning to unveil new regulations around digital currencies.
Treasury Secretary, Steven Mnuchin stated that the regulatory body would roll out some new requirements concerning cryptocurrencies. However, it is still unclear what the new conditions would be. Despite that, it is clear that various financial regulatory agencies in the US are looking to provide rules that cover the cryptocurrency space as digital currencies continue to gain more users around the country.