Academic Paper Asks For More Nuanced Crypto Regulation In The United States

Academic Paper Asks For More Nuanced Crypto Regulation In The United States

Two university professors have recently written an article in which they claim that the United States is creating a problematic image for itself as a country and innovator with all the problems that the country is having to regulate cryptos. The two experts affirm that the country’s regulators and lawmakers should be “more nuanced” in order to solve this issue.

Carol Goforth of the Oxford University and Clayton N. Little from the Arkansas School of Law have affirmed in their article that the blame is from the “overlapping” authority of the many regulators that are involved in the process of regulating cryptos.

According to the duo, there are at least three institutions that are focused on solving the crypto issue despite the lawmakers, the Commodity Futures Trading Commission (CFTC), Internal Revenue Service (IRS) and the U.S. Securities and Exchange Commission (SEC).

They all have different powers and responsibilities as well as different views on how to regulate cryptos. This adds up to create a huge problem in which the agencies classify the same assets in many different ways and there is simply no way to determine which one is right.

For instance, the SEC and the CFTC are very vocal that people should comply with the existing regulation when they issue or trade cryptos but these assets are, in fact, different from what is in the scope of the current regulation and this creates a regulatory uncertainty.

At one occasion, the chairman of the CFTC, Christopher Giancarlo, affirmed that the situation is complex because the many regulatory agencies come from different backgrounds and this obviously creates issues. The article written by the professors acknowledges this as a situation that, in fact, is harmful.

According to them, many institutions have claimed that they have no desire to over-regulate the cryptos or that they do not want to harm innovation in any way. However, it is exactly because they are not doing their jobs and they are so intertwined that they have created a very confusing mix of classifications and requirements and nobody knows how to proceed.

Therefore, they said that the U. S. will be marked as a country that is not very receptive to cryptos and this may drive important companies like Coinbase and Bittrex to other countries because they are more permissive and will regulate the market better.

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