Recently, France stepped up its efforts to regulate bitcoin and other cryptocurrencies recently, while inviting other E.U. states to follow in its footsteps. Andrew Yang, United States Democratic presidential candidate for the 2020 elections, has also proposed to deploy a framework for bitcoin and other cryptocurrencies.
Yang expressed his perspective related to regulating cryptocurrencies and suggested a policy on his campaign’s website. He admitted the exponential growth of cryptocurrencies and digital assets and acknowledged their substantial participation in economic activities. Moreover, he mentioned the U.S. failure in drawing up a crypto framework at the national level. Apart from this, he blamed different states coming up with different regulations as the core reason for the crypto markets struggling in the country as compared to the ones based in China or Europe.
Yang emphasized on the urgency of the matter in devising a clear cut bitcoin and crypto framework in order to ease all crypto investments and developments. After pinpointing the shortcomings of the current crypto framework, which in his views is outdated and incompatible with cryptocurrencies.
We should let investors, companies and individuals know what the landscape and treatment will be moving forward to support innovation and development.
Yang found present regulations problematic because they don’t cope with the pace of cryptos at all. Besides, he highlighted the uncertainty in the framework causing investments in the U.S. to suffer and lag when compared with investment growth in other countries. To combat the situation while aiming for innovation and economic growth in the crypto sector, Yang enlisted some actions he would be taking if he is victorious at the elections.
Yang revealed that he would, first of all, define a criterion for token and security followed by defining federal agencies empowered with regulatory power over the crypto and digital assets. Furthermore, he claimed he would provide protection to crypto users and collaborate with other bodies to create and implement a unanimous national framework.
Yang regards himself as an entrepreneur, instead of a career politician, who clearly understands the economy. He showed deep concerns with automation, resulting in permanent loss of several jobs. That’s why he had established Venture For America (VFA), an organization aiming to help entrepreneurs create jobs, to neutralize the negative impact of automation on job markets.
Recently, the Token Taxonomy Act that focuses on excluding cryptocurrencies from being classified as securities was reintroduced by legislators in the United States House of Representatives. In addition to defining cryptocurrencies, the act demonstrated the jurisdiction of Commodity Futures Trading Commission (CFTC) and the Federal Trade Commission (FTC). After comparing progress with China, the act recognized the gap between the U.S. and China in this regard, as identified by Yang as well. The act introduced certain rules to regulate blockchain technology as well.
One of the representatives, Darren Soto, emphasized the need to regulate blockchain and said;
It is time for the United States to step up and lead in blockchain technology.
Reasoning with the significance of the act, he said;
This is an important step to promoting innovation and maximizing the potential of virtual currencies for the U.S. economy, all the while protecting customers and the financial well-being of investors.
As mentioned earlier, the trend of regulating cryptos originated in France but impacted worldwide. The similarity in the concerns experienced by Yang and pointed by representatives of the act shows that at least some powerful people in the U.S. understand the prospects of regulating blockchain and cryptocurrency. If these suggestions are carried forward as intended, the U.S. will be on the same page as most of the rest of the world in welcoming a unified crypto framework.
There should also be emphasis on devising a single national framework as at the moment, different states treat cryptocurrencies with different approaches. For example, Ohio accepts bitcoin taxes but other states don’t. EU faces the same problem as the EU parliament has as of yet failed in finding a common ground for all member states.
Regulating cryptocurrency and blockchain will enhance people’s trust in them. Although this trend passing onto the U.S. appears conditional with Yang’s victory as a prerequisite, it is clear that things are going in the forward direction for cryptos and blockchain. As France has stepped up it game, many more countries are expected to follow it. It would be fascinating to see in what ways other countries replicate France’s model even as France is looking for a positive response from fellow EU member states.