US Congressmen Seek to Prevent Crypto Price Manipulation


US Congressmen Seek to Prevent Crypto Price Manipulation

Congressman Darren Soto and Ted Budd have introduced the bills that direct the CFTC and other financial regulators to make recommendations for how to improve the crypto regulatory environment for both consumers and businesses.

US Congressmen Seek to Prevent Crypto Price Manipulation

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Source: CoinSpeaker

Designate BTC & Cryptocurrencies as a Separate Asset Class: Bobby Lee Seconds Davidson’s View

US Congressmen Warren Davidson is planning to introduce a new legislation which will create a new unique asset class for the cryptocurrency. And he has found support from Bobby Lee, who took on Twitter to second the thought put forward by the congressman.
Bill could get in regulatory clarity towards cryptocurrencies and ICO’s
As certain sections of media reported that US congressman from Ohio was planning to introduce a bill that could create a new asset class to cryptocurrencies and ICO ’s, Bobby Lee took onto Twitter to give a thumbs up to this thought. According to Lee, Bitcoin and cryptocurrencies (as opposed to tokens) need to be designated as a completely new asset class as this is the way forward for them and would help them grow in a much-regulated fashion

Yep, I fully agree. #Bitcoin and true cryptocurrency (as opposed to tokens) should indeed be designated as a completely new asset class. That’s the only way forward.
— Bobby Lee (@bobbyclee) December 6, 2018

The news was reported by which said that the Republican from the 8th District says he plans to introduce legislation in the House of Representatives that would create a new, unique asset class for cryptocurrencies and initial coin offerings (ICOs), allowing for a clearer path to government regulation. The bill would prevent crypto assets from being classified as securities and empower the federal government to “regulate initial coin offerings more effectively.”
This was not the first time the Congressman had put forward a request to legitimize and regulate blockchain technology. He was part of the group of US lawmakers who had written a letter to the SEC in September 2018, asking for more clarity on regulations before confused tech companies start leaving the country. The letter than had stated that
“Current uncertainty surrounding the treatment of offers and sales of digital tokens is hindering innovation in the United States and will ultimately drive business elsewhere. We believe that the SEC could do more to clarify its position.”
The legislation has not yet been introduced, but should become public soon said Davidson, who announced his plans at the Blockland Solutions conference, held in downtown Cleveland. Davidson was also quoted saying
“What this does for entrepreneurs is it gives people an ability to raise capital a different way,”
 The news report also quoted that though the conference focuses on uses outside of cryptocurrency, the main point is how blockchain can be used in government. Lt. Governor-elect Jon Husted spoke Sunday evening about how blockchain technology could be incorporated into InnovateOhio, a plan to modernize Ohio’s governance processes.
Well, regulatory clarity is always welcome in the crypto industry as it provides a direction to crypto business by drawing a line between what is legal and illegal. Defining an asset class for cryptos will protect them from being termed as securities and would effectively bring in better regulation that would act as a catalyst for growth for cryptos.
Will we soon see a designated asset class for cryptocurrencies? Do let us know your views on the same.
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Source: CoinGape

Centralized Deciding Future of The Decentralized, Questions on Benefits of Cryptocurrency Over Dollar Raised Again

US Govt. lawmakers failed once again to comprehend the basics of cryptocurrencies as the hearing committee discussed questions regarding future of cryptocurrencies as money.  

On July 18th Lawmakers in the United States gathered to discuss cryptocurrencies in a hearing known as ‘Digital Currency: The Future of Money.’ And as the testimonies and questions progressed the whole debate moved towards understanding how Bitcoin or cryptocurrencies could be used as currencies and is there a possibility that they may replace the “dollar” in the future.

Witnesses testify various aspects of digital currency

The hearing began opening comments from the senators that basically revolved around the future of money and how digital currency may feature in it when discussing the future of money. The lawmakers also tried to gauge whether it was required to have a firm understanding of some of the defining characteristics of virtual currencies namely- store of value, a unit of account and medium of exchange.  The testimony of each of the witnesses presents gave a different perspective of digital currencies thus trying to cover every possible aspect need to understand the new technology.

The testimony of Rodney J. Garratt, Maxwell C. and Mary Pellish Chair, Professor of Economics, University of California Santa Barbara, spoke about how convenience and speed of electronic transfers have led to a decline worldwide in the use of cash. And with declining cash people may be compelled to use alternative payment systems which either could be cryptocurrencies or digitized currencies issued by central banks.

The next to testify was Norbert J. Michel, Director, Center for Data Analysis, The Heritage Foundation, who spoke about how cryptocurrencies have the potential to transform the financial industry and why cryptocurrency should be embraced as an alternative payment system without much of government interference

Next, Eswar S. Prasad, Senior Fellow, The Brookings Institution commented on the economic impact and implications cryptocurrencies have for the Fed in terms of its monetary policy, objectives of low inflation, high employment and most importantly financial stability if digital currencies become widely prevalent, He also tried to draw distinction between central bank digital currencies which could use the same cryptographic technology and non-official cryptocurrencies.

He was followed by Alex J. Pollock, Distinguished Senior Fellow, R Street Institute, who testified utility related aspects of cryptocurrencies which included used in payments and settlements or used to denominate debt and other enforceable contracts.

Also, read: Fed Chairman Powell Testifies Says Cryptos have No Intrinsic Value

The good, bad & ugly of U.S. Congress’ discussion on the “Future of Cryptocurrency” as money

As the lawmakers questioned the witnesses to understand, whether digital currencies were simply a new way to hold and transfer value that will have a limited impact and niche appeal or will it have a far-reaching transformative effect that will change our economy forever, a lot of interesting points came forward.

A lot of the lawmakers did question whether cryptocurrencies had the potential to displace Federal reserve notes or have the capabilities to bring down usage of these notes. The answer to this according to expert witnesses was that the cryptocurrencies were a bad “medium of exchange” and cryptocurrencies that are backed by fiats such as tether are gaining traction as a medium of exchange allowing US dollar maintain its dominant role and position through U.S. institutions and the trust in the Federal Reserve.

What advantages do cryptocurrencies have for common users, other than criminals and tax evaders?

The discussion did put further light on technological vulnerabilities that are potentially out there which are a point of concern for cryptos being accepted as currencies by central banks. To which Dr. Prasad replied that the same vulnerabilities are present with fiats as well where counterfeiting of currency notes is a big issue.

The discussion also included points like the issue that cryptocurrencies offer unparalleled advantages to people who carry out illegal activities, tax evaders, and criminals before moving back to what makes cryptocurrency a currency.

The committee did speak about revisiting this discussion again and asked the members to submit their questions in writing in the next 5 working days.

What do you think about this discussion? Was it convincing enough to steer the US lawmakers towards regulating cryptos? Do let us know your views on the same.



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Source: CoinGape