It might be better for governments to stay away from cryptocurrencies, according to Manisha Singh, acting Under Secretary for Economic Growth, Energy and the Environment at the State Department. Government intervention might not be ideal for innovation in the space.
Countries and governments around the world are analysing the effects of regulating the cryptocurrency market. There are currently a few countries that have taken clear regulations in terms of virtual currencies. Malta, Switzerland and Japan are just some of these examples.
Mr. Singh commented that they want to see how other countries implement regulations before they finally decide how to control the Bitcoin ecosystem and crypto market as a whole.
About it, she mentioned:
“We want to see other countries adopt light-touch and compatible regulations so the private sector has room to innovate and perfect potential new uses for blockchain. As the government, sometimes the best thing we can do to help is stay out of the way.”
During the Blockchain Summit that took place on Wednesday, she said that the Trump Administration is currently committed to lowering trade barriers overseas and protect intellectual property. She has also mentioned that they started to explore different ways in which blockchain technology could be implemented in different economic areas.
Moreover, she explained that the government is interested in partnering with different sectors of the blockchain ecosystem. That includes private companies, academia, civil society and many other groups that participate in this market.
Until now, U.S. regulatory agencies have been taking isolated measures regarding different issues in the crypto market. Most of them have been related to Initial Coin Offerings (ICOs) that operated in the market and were selling unregistered securities.
Nevertheless, there are different regulations that apply to virtual currencies and that might be complicated for firms to follow. Are they securities, commodities or currencies? This is making it difficult for the space to grow and expand. The best thing that the government can do is to remain far from the market, at least until other regulations prove to be useful around the world.