U.S. Congressman Embraces Crypto with Three New BillsSep 23, 2018, 8:46AM
Newly drafted bills are showing that Congress supports the freedoms of cryptocurrency holders. How does this mesh with existing regulations?
Representative Tom Emmer of the U.S. Congress has drafted three bills that contain overwhelming support for cryptocurrency. These bills were drafted after Emmer was appointed co-chair of the Congressional Blockchain Caucus, a group which was originally created in 2016.
The bills take a permissive stance on various crypto issues, and each approaches cryptocurrency from a different angle.
- The first bill supports a “simple legal environment” and a “light touch” that encourages the development of blockchain technology and digital currencies. The bill compares this to the situation that allowed the Internet to flourish.
- The second bill allows miners, wallets, and other services to operate without following some of the licensing rules that apply to other financial services. This new stance applies to crypto services that do not control their user’s funds.
- The final bill suggests a “safe harbor” for taxpayers who inherit cryptocurrency during hard forks. This will restrict the IRS from fining coin holders who attempt to report their assets, assuming the IRS has not provided instructions on how to report those assets.
Although many fear that the government will increasingly interfere with cryptocurrencies, Congress’ recent activity has been somewhat encouraging. A Congress meeting that took place in July also had a positive outlook.
Nevertheless, Congress' decisions are only part of the issue. The Securities and Exchange Commission also has substantial control over crypto; notably, SEC regulations prevent non-accredited investors from participating in ICOs.
Additionally, laws mandating KYC regulations have made identity checks omnipresent on crypto exchanges. Many in the crypto community are not happy with the current state of affairs, and Congress' newly proposed bills will not undo these constraints.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.