[[{“value”:”That is the topic of my latest Bloomberg column, here is one part of the argument, which focuses on the bill that recently passed the House but may stall in the Senate: As for the policy details: Is this a good bill? Mostly, yes. Without a coherent regulatory framework, the US crypto sector won’t be competitive
The post Why some additional regulation would help crypto appeared first on Marginal REVOLUTION.”}]]
That is the topic of my latest Bloomberg column, here is one part of the argument, which focuses on the bill that recently passed the House but may stall in the Senate:
As for the policy details: Is this a good bill? Mostly, yes. Without a coherent regulatory framework, the US crypto sector won’t be competitive with those of other nations. That damages the potential for American innovation, encourages some entrepreneurs to take their businesses abroad, and could eventually limit the integration of crypto with mainstream financial infrastructures, which would put the US financial sector at a disadvantage.
The bill has the critical provision of requiring crypto infrastructures to be sufficiently decentralized, at least if that infrastructure is to fall under the jurisdiction of the CFTC rather than the SEC. These decentralized crypto infrastructures, which would include Bitcoin and the Ethereum network, are considered to be “digital commodities,” and are granted greater freedom. Such assets are not like shares of Apple stock, where the buyer expects a very particular kind of corporate responsibility and predictable financial reporting. So the bill stipulates that, for many crypto assets, initial issuance must involve tighter disclosure and regulation, with a role for the SEC. Over time, as the blockchain for that asset became more mature and well-established, regulation would relax.
Any particular proposal for such rules will necessarily involve some ambiguities and be susceptible to being gamed (by companies) or abused (by regulators). What is considered “adequate” decentralization, for example, is ultimately a subjective question. Still, this bill seems like a reasonable place to start for crypto regulation.
The alternative to such regulations of course is complete regulatory discretion, which is currently part of the status quo. And here is Alex’s recent post on crypto regulation.
The post Why some additional regulation would help crypto appeared first on Marginal REVOLUTION.
Law, Uncategorized, Web/Tech
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