Everyone’s abuzz over Libra and what it will mean for Facebook users. But here’s another point to consider: How will Congress legislate cryptocurrency now? Will the Token Taxonomy Act finally get passed?
Mike Minihan, partner and tax expert at BX3 Capital, a business advisory firm that helps companies get established with fundraising and professional services, has the following thoughts on Libra and the Token Taxonomy Act.
Why is regulation for cryptocurrency-backed securities so important for the US economy?
It may seem counterintuitive that regulation would be helpful for business but in the case of businesses that rely on a cryptocurrency component, the lack of regulation is harmful. The uncertainty that surrounds a business’s operations because of inadequate regulation (in a largely regulated economy) acts as a deterrent to those with good ideas who fear draconian measures when regulation inevitably comes.