Ted, I agree that there needs to be a push for some type of Federal regulation to begin with. Due to the disparities that exist between state laws, this type of uncertainty for businesses or individuals looking to operate in the space can be terrifying. Especially in the times we live in where ecommerce allows businesses to freely transact with one another across state lines, to expect businesses to have to abide by piecemeal laws that differ from state to state is inefficient and costly.
Implementation of a Federal framework, which would (theoretically) create consistency in the laws that may govern crypto currencies would help eliminate a lot of uncertainty that many start-up businesses or established businesses may face when deciding on how to handle or implement crypto currency or Blockchain into the business. In fact, there is some proposed legislation similar to the UCC, which seeks to create a set of laws as it relates to money transmission laws that can be applied to cryptocurrency uniformly by all states.
However, as a result of the global impact crypto currencies will have, I think the end game has to be some type of global regulatory framework that attempts to regulate crypto currencies fairly amongst all participating countries. I believe the IMF has been lobbying for something similar to this.
Ted Baker - 7 years ago
I believe that some sort of regulation at the federal level is necessary if only to prevent a patchwork quilt of individual state regulations. While I consider the cryptos to be a commodity, there will be some serious spillover into other areas as applications such as cash equivalent payment systems are adopted worldwide.
Interestingly many other applications will be developed to use blockchain or similar technologies with are not strictly economic in nature. (contracting, escrow, voting for example) so we want to avoid throwing the baby out with the bathwater. Exciting times ahead and speculation in cryptocurrencies may be matched by investment in crypto-related development industries.
Ted, I agree that there needs to be a push for some type of Federal regulation to begin with. Due to the disparities that exist between state laws, this type of uncertainty for businesses or individuals looking to operate in the space can be terrifying. Especially in the times we live in where ecommerce allows businesses to freely transact with one another across state lines, to expect businesses to have to abide by piecemeal laws that differ from state to state is inefficient and costly.
Implementation of a Federal framework, which would (theoretically) create consistency in the laws that may govern crypto currencies would help eliminate a lot of uncertainty that many start-up businesses or established businesses may face when deciding on how to handle or implement crypto currency or Blockchain into the business. In fact, there is some proposed legislation similar to the UCC, which seeks to create a set of laws as it relates to money transmission laws that can be applied to cryptocurrency uniformly by all states.
However, as a result of the global impact crypto currencies will have, I think the end game has to be some type of global regulatory framework that attempts to regulate crypto currencies fairly amongst all participating countries. I believe the IMF has been lobbying for something similar to this.
I believe that some sort of regulation at the federal level is necessary if only to prevent a patchwork quilt of individual state regulations. While I consider the cryptos to be a commodity, there will be some serious spillover into other areas as applications such as cash equivalent payment systems are adopted worldwide.
Interestingly many other applications will be developed to use blockchain or similar technologies with are not strictly economic in nature. (contracting, escrow, voting for example) so we want to avoid throwing the baby out with the bathwater. Exciting times ahead and speculation in cryptocurrencies may be matched by investment in crypto-related development industries.