US Federal Government: Confusing Regulation For Crypto, Full Clearance For Blockchain

Individual US states seem to be in competition for the title of the most crypto-friendly in the Union - Ohio's recent announcement of imminent crypto tax payments being the latest example.

It is not just stakeholders and crypto buffs who bemoan the disorderly state of federal policies: their usual talking points have been recently validated by academics.

While the Commodity Futures Trading Commission treats crypto as commodities, the Securities and Exchange Commission insists they are securities, the Treasury Department's Financial Crimes Enforcement Network applies currency rules, and the Internal Revenue Service treats digital money as property.

Skeptical of the possibility that these regulatory powers get consolidated anytime soon, Prof. Goforth calls for increased coordination between the agencies in an effort to introduce a more nuanced, rather than 'monolithic,' approach to various crypto assets.

On Dec. 6, US Representatives Darren Soto and Ted Budd introduced two bills aimed at preventing crypto price manipulation and optimizing regulatory framework: The Virtual Currency Consumer Protection Act of 2018 and the U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2018, respectively.

The first bill outlines possible scenarios of price manipulation in the crypto markets and advances remedies, whereas the second one calls for a comparative study of regulatory arrangements in other national contexts, with the view to improve the current domestic 'burdensome regulations that may inhibit innovation.

The last few weeks have also seen the rise of a new star of crypto legislation, at least in terms of generated publicity.

A week later, during an interview to NPR, Davidson said that the border wall between the US and Mexico could be crowdfunded, suggesting that one of the mechanisms for that could be blockchain and issuance of 'wall coins.

While financial regulators and lawmakers are taking time to figure out ways to better handle the realm of digital assets, many federal agencies that are not concerned with monetary matters are exploring the uses of blockchain technology to aid their day-to-day operations.

Another matter of the agency's interest is germane to the licensing and certification functions performed by its three subsidiaries: the US Customs and Border Protection, US Citizenship and Immigration Services, and Transportation Security Administration.