Will Bitcoin Be Regulated in the United States
Many are asking will bitcoin be regulated in the United States. This is a topic that won’t stop being controversial anytime soon, even less so during a time so crucial for cryptocurrencies as it is now.
As of late you may have started to notice some consideration given to the government implementing both cryptocurrencies and their blockchain technology into their functioning.
Some other countries are even taking huge steps in finding ways to regulate bitcoin. I suspect other cryptocurrency regulations will follow for other coins.
Naturally, some governments have taken a more prominent role in regulating Bitcoin than others and in healthier ways than others in my opinion.
Having countries like Russia banning cryptocurrencies, it’s normal to think that governments are strictly against Bitcoin. But this is not the case.
One country that has been a pioneer in Bitcoin regulation has been the United States, and their controls really aren’t a direct attack on Bitcoin as some may think.
Some think these regulations will assist in protecting investors who are looking to invest in this new market while it is still being established as a legitimate form of asset.
Bitcoin is regulated under the virtual currency law composed of tax regulation and FinCEN regulations regarding transparency between exchanges and customers.
However, despite being one of the first countries moving towards Bitcoin regulation, it has also been one that hasn’t done much in the matter.
Among the Notable Bitcoin Regulators in the US, We Have:
Securities and Exchange Commission.
The SEC hasn’t approved any ETF holding cryptocurrencies for trading or listing as well as no Initial Coin Offerings have been registered.
In July this current year, the SEC published a statement on the benefits and opportunities of Bitcoin as lawful investment options.
Investors should definitely be aware of illicit uses for the cryptocurrency that need to be avoided.
So far, the SEC has exposed two ICOs for alleged fraud and halted operations for a third one. Just this week one company stopped doing business in USA and Canada due to their strict regulations.
Commodity Futures Trading Commission.
The CFTC has declared Bitcoin as a commodity while announcing that any case involving fraud and manipulation including Bitcoin between states, as well as the regulation of commodity aspects of Bitcoin is under its authority.
Just recently the CFTC has allowed for the CBOE and the CME to launch Bitcoin futures.
Internal Revenue Service.
The IRS has stated how Bitcoin must be treated:
As property for tax purposes.
As inventory if intended for resale.
As a currency for payments but it has to be converted into fiat.
Delaware, Arizona and Vermont are some of the states that already passed laws related to blockchain and Bitcoin. In July, the National Conference of Commissioners on Uniform State Laws voted to approve a model act to aid the regulation of businesses involved with digital currencies at a state level.
Department of Treasury.
The inspector general in this department stated plans to review FinCEN’s practices with cryptocurrency due to money-laundering and terrorism financing fears.
Steven Mnuchin, Treasury Secretary, noted an establishment of working groups to monitor, observe, and watch current trends related to Bitcoin.
The regulation of bitcoin I believe will continue to evolve, especially since this is a currency that offers many challenges for the government. This is all the more reason to really be careful where you buy bitcoin.
Did you know that South Korea is already regulating bitcoin? What are your thoughts? Share them below.
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