Law Professor Urges U.S. Government to Streamline Crypto RegulationsDec 11, 2018 at 21:23
A professor at the University of Arkansas School of Law claimed that there are various negative consequences that are happening in the crypto market in the United States as several regulations fall under conflicting laws that are being defined differently by various authorities.
In a paper published by professor Carol Goforth, she detailed that at present, crypto assets are regulated in the US as property by the Internal Revenue Service, as money by the Department of Treasury’s Financial Crimes Enforcement Network, as commodities by the Commodity Futures Trading Commission and as securities by the Securities and Exchange Commission.
She also mentioned that each state also has its own set of laws that may apply to cryptocurrencies with equally unique regulatory approaches that resulted into a set of “overlapping rules and confusing requirements” that greatly affects the progress of certain innovations in the market.
Goforth added that another issue that hampers progress in the market also involve expenses in complying different set of obligations as it becomes a tedious and time consuming step for businesses and exchanges.
“It is easy to see why the US is not regarded as being receptive to crypto,” she explained in her paper.
The academician added that at present, it is unlikely that the aforementioned regulatory agencies will be amenable to consolidate their power over cryptocurrencies since prior attempts to do so already failed.
“This change in perspective requires a paradigm shift that moves away from treating crypto as a single kind of asset, when in reality, it is not. Hopefully, American regulators will realize this, and act on this reality, sooner rather than later,” Goforth further stated.
Her entire paper can be accessed here.
It can be recalled that last September, a federal judge from Brooklyn, New York ruled out that United States securities laws may cover token sales under initial coin offerings, a ruling that is interpreted differently in other states.
District Judge Raymond Dearie declared that the government can proceed with a case alleging that an ICO is a security for purposes of federal criminal law