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Regulations
Carol Goforth is a professor at the School of Law at the University of Arkansas. He recently published a paper on the consequences of having cryptocurrency regulations that fall into a series of conflicting laws, defined by various US authorities, all at the same time.
Read also: Number of lost requests related to cryptography
Confusing, prohibitive and expensive regulation
<img class = "alignright size-medium wp-image-258474″ title=”Professor of US Law: Confusing Cryptocurrency Regulations will be the Hamper's innovation” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/University-of-Arkansas-300×188.jpg” alt=”US Professor of Law: Confusion Cryptocurrency Regulations Will Hamper Innovation "width =" 300 "height =" 188 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/University-of -Arkansas- 300×188.jpg 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/University-of-Arkansas-768×480.jpg 768w, https://news.bitcoin.com/wp -content / uploads / 2018/12 / University-of-Arkansas-1024×640.jpg 1024w, https://news.bitcoin.com/wp-content/uploads/2018/12/University-of-Arkansas-696×435.jpg 696w , https: //news.bitcoin.com/wp-content/uploads/2018/12/University-of-Arkansas-1392×870.jpg 1392w, https://news.bitcoin.com/wp-content/uploads/2018/ 12 / University -of-Arkansas-1068×668.jpg 1068w, https://news.bitcoin.com/wp-content/uploads/2018/12/University-of-Arkansas-672×420.jpg 672w "sizes =" (maximum width : 300 px) 100vw, 300px”/>Cryptographic assets are currently regulated in the United States as property of the Internal Revenue Service (IRS), as money from the Financial Crimes Enforcement Network of the Treasury Department (Fincen), as commodities by the Commodity Futures Trading Commission (CFTC), and as securities from the Securities and Exchange Commission (SEC). Furthermore, every single state has its own set of laws that can apply to cryptography, and some have even adopted unique regulatory approaches on the subject.
This has produced a series of overlapping rules and confusing requirements that could hinder innovation in the American cryptic industry, according to Professor Carol Goforth. Moreover, the expenses associated with meeting all these obligations can be prohibitive and time-consuming for US cryptographic companies such as stock exchanges. And with the added risk of investigations and control actions, "it's easy to see why the United States is not considered receptive to cryptography," he explained in his article.
A paradigm shift is required
<img class = "alignright size-medium wp-image-258478″ title=”Professor of US Law: Confusing Cryptocurrency Regulations will be the Hamper's innovation” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/Confusing-regulation-300×300.jpg” alt=”Professor of Jurisprudence of the United States: Confusion Cryptocurrency Regulations Will Hamper Innovation "width =" 300 "height =" 300 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/Confusing-regulation -300×300. jpg 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/Confusing-regulation-150×150.jpg 150w, https://news.bitcoin.com/wp-content/uploads/2018/ 12 / Confusing-regulation-768×768.jpg 768w, https://news.bitcoin.com/wp-content/uploads/2018/12/Confusing-regulation-1024×1024.jpg 1024w, https://news.bitcoin.com/ wp-content / uploads / 2018/12 / Confusing-regulation-696×696.jpg 696w, https://news.bitcoin.com/wp-content/uploads/2018/12/Confusing-regulation-1392×1392.jpg 1392w, https: //news.bitcoin.com/wp-content/uploads/2018/12/Confusing-regulation-1068×1068.jpg 1068w, https://news.bitcoin.com/wp-content/uploads/2018/12/Confusing-regulation -420×420.jpg 420w, https://news.bitcoin.com/wp-content/uploads/2018/12/Confusing-regulation.jpg 1600w "sizes =" (maximum width: 300px) 100vw, 300px”/>Unfortunately, Professor Goforth has established that it is unlikely that the United States will remove any of the above-mentioned bodies or limit the jurisdiction of existing agencies to consolidate regulatory power. This is because previous attempts to consolidate the functions of various financial regulators have failed, lawmakers think that the existing authorities have different areas of expertise and that the courts have approved the situation.
Therefore, these agencies should meet and make a concerted effort to coordinate enforcement and regulatory control on the basis of a more nuanced approach. "This change in perspective requires a change of paradigm that moves away from treating the crypto as a single type of resource, when in reality it is not, and we hope that the American regulators will realize and act on this reality, sooner or later", he concluded.
How should US cryptocurrency innovators deal with confusing regulation? Share your thoughts in the comments section below.
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