Clearer Regulations Of ICO And Crypto Needed For Widespread Adoption
Despite the backlash against the adoption of regulations for ICOS and cryptocurrency, there are some benefits to implementing such measures. A new initiative by the United States Chambers of Commerce and its Fintech Innovation shows that precise regulations may be important for the purpose of “bridging the gap between tech and DC.”
The Chamber of Commerce released a report to US financial regulators, stating that without the regulations, other countries will get ahead and remain more innovative. At this point, the United States has invested about 5 million dollars in blockchain in 2017 and in 2018, the figure has grown to 10 billion. For the figures to keep growing, changes are imperative.
Regulation would promote greater regulatory certainty and the report issued highlighted several recommendations on the matters. At this point, the chambers suggested that without the adoption of regulations, investment, enterprise, and entrepreneurs would move to other jurisdictions that have regulatory certainty. To prevent the move, the SEC should provide a greater level of guidance on classifying tokens and ICOS so that companies can operate more predictably in the marketplace.
Further, the SEC and the Commodity Futures Trading Commission should study how ICOS can continue to effectively fundraise and how they can operate in the commodities markets. In the report’s own words, “In both cases, we urge the agencies to regulate the products and services enabled by the technology instead of the technology itself” and “As the crypto industry evolves, it is critical that both the SEC and CFTC are mindful of the fast-moving pace of technology, create streamlined processes to assess the tokens, and be prepared to issue relief so regulatory hurdles do not become a barrier to entry.”
The CFTC’s commissioner also once stated that “cryptocurrencies will proliferate to every economy and every part of the planet.’’ At least now, for the US to be a leader in this transformation, it regulatory agencies may need to pay heed to the commission’s report.