The cryptocurrency situation in the U.S. has been called to attention once again by one of the top candidates for the lead post of the House Financial Services Committee if the Republicans keep the majority next year. Rep. Bill Huizenga brings up the matter of crypto regulation and stated that it is a priority for him. Huizenga says that the initial coin offering (ICO) and crypto situation is “pretty muddy”, and they need to understand what must be done to increase investor security without restricting the growth of these areas.
The crucial question that is so often raised of late is the regulation of the crypto sphere and blockchain technology, that Huizenga says are “going to be very useful.” The regulatory laws that are applied are inefficient and incapable since many of them were written in the 1940’s and at best rethought in the 1970’s. To compete on the international stage Huizenga believes that they need “to do better than that.”
Meanwhile more and more companies are found to be involved in crypto-related scams. This might be a reason why the opinion of the Congress has split, with some like Huizenga maintaining the view that crypto must not be left in the wings and others like Rep. Brad Sherman claiming that crypto is absolutely untrustworthy and needs to be stopped.
WHY IS THIS IMPORTANT?
- If the U.S. establish a coherent and transparent form of regulation for this will allow companies to work on a more legal basis.
- The investors in crypto will be more protected since there will be laws governing crypto activity.