US Under Pressure to Pass Cryptocurrency Regulation Bill

By Kapil Gauhar

Michael Arrington, the TechCrunch founder, published an ominous prediction a few months ago that if the United States didn’t pass a cryptocurrency regulation bill anytime soon, it would fall short in the global market. Since then, it looked that lawmakers are taking notice of everything.

In the form of US legal jurisprudence about security tokens, the last few weeks have been quite in the notice of the general population. The U.S. Securities and Exchange Commission published a report that clarified its security token framework in early April. Last week, 21 US Congress members filed a petition against IRS clarifying its position on crypto tax regulations.

More and more, US lawmakers are taking notice of everything that in case the government doesn’t start taking blockchain and cryptocurrency seriously, then it would begin to fall behind internationally. What’s even worse is that the sector may lose investors altogether. Though no one expects the US to adopt a stern law to regulate digital currencies, like that of China, the community is still searching for clarification.

Though the U.S. Securities and Exchange Commission’s recent report has been called a historic decision in this regard, yet it is still a far cry from a formal legislative solution. The country’s Token Taxonomy Act is currently in the queue to be discussed and voted on in Congress, but it’s unlikely that it would get there until the end of the year.

Warning by Arrington

The TechCrunch founder, Michael Arrington, has said that the lack of clarity in cryptocurrencies is something that may cost US investors dearly. Currently, the manager of Arrington XRP Capital, he stated –

“We have a few good U.S. investments, but 80 to 90% 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 uncertainty in regulation currently in the US. In addition, there is the added tax burden, as well as the additional complications of country’s visa requirements, which makes issuers attentive about starting their operations in the US. If this continues to happen, then the end result could be catastrophic for the US crypto market.