The regulatory treatment still remains unclear for Bitcoin and the cryptocurrency eco-system as a whole, along with related industries. February was due with some light to come on Bitcoin’s much await Exchange Traded Fund decision bye the SEC, so eyes are set on that for the coming days. But the SEC is not the sole stakeholder to the crypto space and is part of a larger setup that consists of other authorities such as CFPB and CFTC, along with the government.
As of now, the U.S. crypto regulation space has failed to reach consensus among themselves regarding the future prospects of Bitcoin and related technologies, which has seen to a rather confused state of events over the past year or so and has depicted in the price market as well. Speaking to BlockPublisher, cryptocurrency attorney and representative Braden Perry suggested that the foremost aspect of regulation in the U.S. crypto space is for these multiple authorities to come up on the same page. He said:
The only way a successful regulatory regime for cryptocurrencies is to first, make sure the regulators are on the same page. That’s obviously no occurred. Second, you need input from the stakeholders, meaning those in the industry and those with interest in investing in the industry. Finally, the regulations need to be pliable enough to survive the ever changing technology, something which the government does not do well.
Perry suggested that the real problem for these regulators lies in competing among themselves as they will likely put cryptos as an investment entity at first and then continue their search for a complete regulatory system. But mostly, the problem lies in multiple authoritative organizations being on the same page regarding the space. He stated:
The federal government will likely attempt to treat cryptocurrency regulation like many investment products currently, with an overarching regulatory system and room for states to add specific provisions. The problem is getting the federal regulators on the same page. The CFTC, SEC, and FinCEN all this past week as attempted to snarl headlines from one another and only cooperative and cohesive federal regulations will allow a broader framework to occur.
However, Perry reassured that the SEC and other regulators do not plan on shutting down cryptos by the core and are giving it serious consideration. However, the current controversial status of ICOs is becoming a road block as legality problems continue to cause some confusion. He analyzed the difference of SEC’s stance compared to other authoritators as:
The CFPB, SEC, and CFTC have all taken some action, but the legal space is still very confusing and this appears to be the SEC’s attempt to lead in the ICO state. I don’t think it’s aimed to quell cryptocurrency, but reign in the wild west nature of ICOs in the past. The SEC appears to take a traditional initial offer standard and is attempting to apply it to ICOs.