Uniform Law Commission in the US Says States Should Not Enact Crypto Regulations Just Yet
The U.S. Uniform Law Commission has requested US states to refrain from enacting cryptocurrency-related legislations until it is possible to have knowledge of the impact these technologies have on the market. During the last year, many states started to regulate virtual currencies in the country.
Should States Regulate Virtual Currencies or not Yet?
Some states such as California, Hawaii, Nevada, Oklahoma, and Rhode Island have introduced the Uniform Regulation for Virtual Currency Businesses Act in their legislatures. The main intention is to control and regulate the cryptocurrency market. Nonetheless, the Uniform Law Commission requested states not to implement crypto regulations until the impact of virtual currencies is properly addressed.
The Uniform Law Commission explained:
“To meet the growing need for law on this topic, the ULC and ALI have created a study committee to determine how the Code [the UCC] might be amended on a uniform basis to deal with emerging technologies. Sates are urged to refrain from enacting legislation pending the result of the committee’s work.”
The Uniform Law Commission is a non-profit organization that works in order to provide drafted legislation for statutory laws. Now, the organization is moving towards digital currencies and blockchain technology. It seems that the intention is to adopt a “wait and see” approach.
Caitlin Long, Wall Street Veteran, explained that regulatory authorities are giving blockchain the attention that it deserves. If there are states that implement hard regulations, this will clearly not help the cryptocurrency space at all.
Texas has recently proposed a new regulation that seemed to be even worse than New York’s infamous BitLicense. There are just a few companies in the crypto space allowed to offer services in New York, and many exchanges are not available in the state.
Clearly, it is necessary for the US, the most powerful country on earth, to have clear rules for digital assets that would allow the space to expand and grow. Regulatory agencies are usually worried about the effect that crypto firms could have over investors.
There are other countries, including Malta and Switzerland, that have adopted very flexible regulations for cryptocurrency and distributed ledger technology (DLT) firms to operate in the market.