The US government’s most significant decision when it comes to crypto regulation? Inaction.
The cryptocurrency boom of 2017 brought the attention of regulators the world around. Suddenly, Bitcoin and other cryptocurrencies transitioned from a largely unregulated libertarian fantasy into a legal target.
Despite the seeming urgency of the situation, many regulators were unsure about how to approach the matter. Indeed, Braden Perry, a former enforcement attorney at a federal agency and Chief Compliance Officer of a financial firm, told Finance Magnates that the most notable thing about the changes in the United States’ cryptocurrency regulations is that, well, nothing has really changed–most likely due to this confusion.
How has regulation changed in the US throughout 2018?
“The major takeaway is the regulatory treatment is (still) unclear for cryptocurrency,” he told Finance Magnates. “It seems as if every federal regulatory agency has chimed in on cryptocurrency, but none have taken the lead. The CFPB, SEC, and CFTC have all taken some action, but the legal space is still very confusing and this appears to be the SEC’s attempt to lead in the ICO state.”
“I don’t think it’s aimed to quell cryptocurrency, but reign in the wild west nature of ICOs in the past. The SEC appears to take a traditional initial offer standard and is attempting to apply it to ICOs,” he continued.
Mike Minihan, Partner at BX3 Capital, echoed Perry’s sentiments. “The year 2018 saw the US regulatory landscape change negligibly, although there were heightened reminders, if not guidance, around cryptocurrency transactions, including ICOs,” he said.