Regulatory Overreach is Crippling the U.S. Crypto Sector: Law Prof.
- A law professor has reached an unflattering conclusion regarding the regulatory climate of the crypto space in the United States — it’s confusing!
- According to Carol Goforth, who teaches at the University of Arkansas School of Law, “overlapping regulations produced by a multitude of distinct agencies with different missions and priorities” has resulted in a “confusing mix of classifications and requirements” for cryptoassets.
- To illustrate her point, Goforth noted that there are four federal agencies in the United States which regulate cryptoassets to a certain degree and form: the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Financial Crimes Enforcement Network (FinCEN) and the Internal Revenue Service (IRS).
- Already, the existing regulatory regime in the world’s biggest economy seems has severely limited the number of coins that U.S.-based cryptocurrency exchanges such as Coinbase can offer their clients.
Facebook’s Mistake Wasn’t Resisting Regulation. It Was Not Asking For It Sooner
- While Facebook has historically resisted government efforts to regulate its operations, it’s now become obvious—even to CEO Mark Zuckerberg—that the company is incapable of doing so alone.
- It’s become clear that we need more, earlier regulation of new industries and ideas.
- Of course, it’s not that some bureaucrat will know more about a new technology than the entrepreneur who created it.
- And when things still go wrong, rather than trying to hide their shortcomings like Facebook did, businesses will be able to work together with agencies from a position of trust.
- Indeed, most of my time is spent fighting attempts at bad regulation of startups by federal, state, or local government.
- Regulators sometimes overstep on behalf of industry incumbents who don’t want startups to challenge existing business models.
- Leaving companies like Facebook to their own devices creates unnecessary risk, and assumes omniscience from companies that doesn’t actually exist.
Malaysia's Central Bank, Securities Regulator to Coordinate for Crypto Regulation
- In a joint statement, Securities Commission Malaysia and Bank Negara Malaysia disclosed that this arrangement will be restricted to ensuring compliance only with the regulations and laws that fall under the oversight authority of the two regulators.
- The Securities Commission will regulate Initial Coin Offerings as well as cryptocurrency trading in the country and the relevant legislation is currently being worked on with a view of bringing digital assets under the existing securities laws in order to protect investors and promote fair and orderly trading.
- The expected regulations will require cryptocurrency exchanges and issuers of ICOs involved or dealing with digital assets that possess a payment function to ensure compliance with the central bank’s laws and regulations.
- Issuers of ICOs and cryptocurrency exchanges will also have to ensure compliance with the ‘Guidelines on Prevention of Money Laundering and Terrorism Financing’ set by the Securities Commission.
Microsoft's Warning About a Powerful Technology—Data Sheet for 12/6
- Last summer the president of Microsoft, Brad Smith, published a nearly 4,000-word manifesto on a seemingly narrow topic, the need for the U.S. government to regulate facial recognition technology.
- Instead, in the extraordinary document, Smith argues that facial recognition is too powerful, too useful, and too potentially scary to leave to technology companies to self-regulate.
- It explains that while the rudimentary tools of facial recognition have been around for a while, the powerful rise of A.I. and the cloud, in which Microsoft is one of the leading technology suppliers, have made its regulation a pressing concern.
- It’s also worth noting Smith is focused squarely on regulation in the United States and the behavior and responsibilities of the U.S. government.
- The word China, a place where many of Smith’s darkest fears about facial recognition already are being realized, does not appear in his July manifesto.
South Indian Government’s 'Innovation Society' to Promote Blockchain Development
- In the southern state of Andhra Pradesh, where they have the APIS – Andhra Pradesh Innovation Society, blockchain is being actively promoted at various levels of government.
- They’ve now entered a partnership with APIS to promote blockchain in using all means necessary – everything from events to educational and mentorship programs.
- In association with Eleven01, the organisation will explore the prospects of the blockchain technology through events, activities and mentorship programs to nurture talent and develop a community.
- We truly appreciate what the Eleven01 team is trying to do and we are happy to associate with them to bring advanced development and innovations with regard to the blockchain realm in the state.
- Together, we will contribute towards the development of the best blockchain-ready talent pool and innovations in the state.
Congressman Finalizing Bill to Exempt ICOs from Securities Laws
- Republican Congressman Warren Davidson, an avowed bitcoin adn blockchain fan, plans to introduce federal legislation that will regulate initial coin offerings (ICO) and cryptocurrencies.
- Republicans — who generally oppose regulation — have been leading the pro-crypto charge in Washington by demanding more clarity on the Securities and Exchange Commission’s plans to regulate virtual currencies like bitcoin, though crypto has found support from across the political spectrum.
- In August 2018, Rep. Davidson invited 32 cryptocurrency companies to Capitol Hill for a summit to discuss ICO regulation, as CCN reported.
- In September 2018, Republican Congressman Tom Emmer introduced three bills that will support the development of crypto and blockchain, the technology underpinning bitcoin.
- Along with the Congressional Blockchain Caucus, a pro-crypto lobbying group was recently launched in Washington, D.C. by three of the biggest cryptocurrency companies in the United States: Coinbase, Circle, and the Digital Currency Group.