How Can Regulations Help Cryptocurrency Grow?
To some ignorance is a bliss but if you ask someone who deals with finance and commerce to them it is a risk. This the reason why the US market has embraced regulations, as it is the only means to provide transparency and fairness. In the US stocks and trades are controlled by SEC and CFTC, and the government currency is regulated by the treasury department. But for the emergent fourth asset class, Cryptocurrencies remains unregulated and creates confusion and uncertainty.
At the beginning of June, a group of regulators has been appointed their job will be to rationalize the application of US security laws to the Cryptocurrencies.
This is easier to say than to turn it into practice. But it is of vital importance.
Without proper regulations, the innovation of the Cryptocurrencies is muted in the country. The entrepreneurs are feeling afraid of regulations to adopt them into their business. The investor feels afraid of investing in it because of its uncertain valuation.
The federal and state enforcement officers are working hard to stamp out the fraudulent ICOs and trading platforms. But without proper guidelines, the fraudulent will always try to push out the good actors from the market.
Although cryptocurrency is still in its growth phase and it is doing a good business worldwide, already the money raised by issuers at the beginning of 2018 has already exceeded the amount raised throughout 2017.
However, the SEC and Crypto Car should take some of the thoughtful steps to promote clarity and innovation in the crypto market:
- Formation of the safety regulatory body should be encouraged, that should enforce standards among the crypto community.
- Convene an interagency working group should be formed by including people from the crypto community with the existing regulatory group as it can promote harmony into the regulatory practices.
- In continuation with the above take the public opinion about the proposed rule defined for the Cryptocurrencies.
- Officially recognizing the amount that has been decentralized is a key factor to determine whether cryptocurrency is a security.
The steps discussed above will help to promote consistency, accountability, and order in the crypto market without imposing unwarranted burdens on its enthusiast. This will also help the US to emerge as a wise leader of regulated digital currencies, which in turn will promote entrepreneurship and innovation in the country. After all, wisdom is true to form of bliss than ignorance. Click Crypto Soft Review to know more.