The US Joint 2018 Economic Congress Report from the House representative was published on March 18th this year. The report details the current state of the economy. The report also addressed the current policy issues and challenges in the economy. According to the report, the US economy is on an upward trend, and economic growth is accelerating.
Blockchain Industry And ICOs
For the first time, part of the US Joint 2018 Economic Congress Report had a section that defined and described the blockchain and cryptocurrency industry. The report claims that 2017 was the year of cryptocurrencies adding that the widespread concern over Bitcoin drove the digital coin to rank second in Google Year in Search 2017 report. The number and price of some blockchain assets dramatically increased leaving behind some notable economic indexes including the SSP 500 and Dow Jones Industrial Average.
The report defines cryptocurrencies as real assets or commodities that could be expanded in the future to function like mediums of exchange. The report also provides reasons for the continued growth of Initial Coin Offers or ICOs citing cost as one of the key reasons. The cost of an Initial Coin Offer in the US is four to seven percent of the raised capital. The developers also spend $4.2 million in accounting costs.
To maintain their status, data from Pricewaterhouse Coopers show that companies will spend about 1 to 2 million dollars. The issuer cost for launching the ICO was approximated at $60,000. The report authors admit that just like most startups, most of the ICOs are likely to fail. However, there are some that will survive that will change the way technology and internet work for a long time.
The report points out that the focus of crypto industry should be on the transformation that is occurring due to blockchain technology. Blockchain will be used in more industries in addition to the financial industry. For instance, distributed ledgers will transform many industries in the future. However, most people are more focused on the cryptocurrencies and the ICO market due to the media hype on these features of the blockchain technology.
Regulations In The Crypto Industry
Concerning crypto regulation, the report points out that there is a need for unique solutions that can be used to meet the consumer needs of security, protection, and entrepreneurship. It might not be possible to determine the required rules, guidance, and regulations needed, but the regulatory agencies need to partner together to ensure they work towards a common goal.
The American set of regulatory institutions that govern financial products and transactions have four different classifications of digital assets including security, commodity, property, and currency. However, these regulations are not conducive to entrepreneurs who would want to launch a startup.
The recommendation of the report is for policymakers to work together to come up with coherent policy definitions, jurisdictions, and frameworks. This will ensure the innovation and entrepreneurship will not be put at risk.
Though blockchain technology still stirs up dispute, it is obvious from the report that blockchain technology cannot be ignored. In future, it will be used to revolutionize different industries in both the public and private sectors.