US Senate Meeting with Market Regulators Over Cryptocurrency
Bitcoin regulations might be on how the US Senate Banking Committee is scheduled to meet with leading market labs in February over cryptocurrency. The noose might be tightening about Bitcoin and its electronic brethren from the USA in the forthcoming months.
At this time, there aren’t any federal regulators that manage cryptocurrency within the usa. The authorities (and above all, the IRS) view crypto as land that is subject to capital gains taxes.
Nevertheless, this may vary later on.
Will this assembly lead to prospective Bitcoin regulations? My magical 8-ball states that it is a different possibility.
The CFTC did permit both CME and CBOE to start record Bitcoin futures contraacts a month. But they are presently reviewing their procedure for this after getting a criticism.
It must be noted that both the SEC and CFTC have issued warnings regarding the volatility of cryptocurrency and they might not have the ability to shield investors from crypto scam artists. There are always those seeking to make a few ill-gotten profits employing crypto as the bait. Case there is BitConnect, that have been closed down from the state of Texas within their promises of financial benefits.
Nevertheless any time authorities committees get together, it ought to be a cause for concern. The truth is that any federal government won’t be overly friendly with a economic system which lies outside the control. To this end, you can bet that regulations are in the forefront of each senator’s head when that assembly rolls around.
Obviously, among the chief attractions for cryptocurrency is the lack of centralization and regulation. Many view virtual money as a reflection of financial liberty, but authorities seem at crypto in another light: some thing to restrain and to taxation.
Shidan Gouran, president of International Blockchain Technologies Corp. summed up the notion that one reason why cryptocurrency was precious was because of a lack of regulation. He explained:
We believe that the greatest threat is regulation. Several governments across the world have clamped down on exchanges, some halting trading altogether. Others have gone on to outright ban the use of Bitcoin. Sudden government actions in major Bitcoin trading hubs stand to disrupt the market, with the potential to severely affect the utility of bitcoin — and accordingly, the value.