A few months ago, Michael Arrington, the founder of TechCrunch, published an ominous prediction that if the United States did not pass a cryptocurrency regulation bill soon, it would fall behind internationally. It seems that now lawmakers are taking notice.
In terms of U.S. legal jurisprudence regarding security tokens, the last few weeks have been noteworthy. The SEC published a report clarifying its security token framework in early April. Then, last week, 21 U.S. Congress members petitioned the IRS to clarify its position on cryptocurrency tax regulations.
More and more, U.S. lawmakers are taking notice that if the government does not begin to take blockchain and cryptocurrencies seriously, it will start to fall behind. Worst of all, the sector may lose investors altogether. Although nobody anticipates the U.S. to adopt a strict law regulating cryptocurrencies like China has done, the community is looking for clarification.
Although the SEC’s recent report has been called a “historic” decision, it is still a far cry from a formal legislative solution. The Token Taxonomy Act is currently in queue to be debated and voted on in Congress, but it’s unlikely it will get there at least until the end of 2019.
Founder of TechCrunch Michael Arrington has said that the lack of clarity regarding cryptocurrencies will cost the U.S. investors. He is currently the manager of Arrington XRP Capital and he said:
“We have a few good U.S. investments, but 80-90 percent of our investments are in Asia, Europe and Israel right now because they are actually countries where there’s enough regulatory certainty that entrepreneurs feel safe starting token or blockchain companies there.”
There’s simply too much regulatory uncertainty currently in the U.S. Additionally, there is the added tax burden, and the additional complications of visa requirements, which makes issuers cautious about starting their operations in the United States. The end result, if this continues, could be catastrophic for the U.S. cryptocurrency market.
Do you believe the United States will successfully pass legislation on cryptocurrencies this year? What do you think are the chances that the U.S. falls behind? Let us know your thoughts below.
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