In comparison, the U.S. has not been as forward about its stance on cryptocurrency regulation. When the Senate Committee on Banking, Housing, and Urban Affairs held a hearing to discuss possible regulation, many interpreted the meeting as a small victory for crypto.
Part of the optimism was attributed to Commodity Futures Trading Commission (CFTC) chairman Christopher Giancarlo, who commented on the tremendous potential of cryptocurrency and the enthusiasm carried by millenials. Both Giancarlo and Jay Clayton, head of the Securities and Exchange Commission (SEC), called for a closer study of crypto and blockchain technology.
In a statement to CNBC last Friday, White House cybersecurity coordinator and special assistant to the president Rob Joyce said the U.S. does not intend to regulate cryptocurrency anytime soon.
In recent days, various banks and government organizations around the world have issued warnings against the dangers of investing in and trading cryptocurrency. Most cite the need for regulatory bodies to track and prevent illegal crypto activity. Some consider the situation so dire that they have turned to self-regulation, such as the seven exchanges that came together to launch CryptoUK as announced earlier last week. A couple of Japanese crypto firms have also stated they will take regulation into their own hands by merging to create a regulatory body. In the same vein, a lot of attention has turned to the regulation of ICOs, with Switzerland releasing official ICO guidelines on Friday.
Joyce seems to echo the same views as his government colleagues. At the Munich Security Conference in Germany, Joyce told CNBC about the need to better understand the risks and benefits of crypto.
“I think we’re still absolutely studying and understanding what the good ideas and bad ideas in that space are,” Joyce remarked. “So, I don’t think regulation is close.”
While the news may come as a relief to traders and investors in the U.S., it might be too early to celebrate. Joyce indicated that the role Bitcoin’s anonymity plays in illegal activities does raise concern, and is a problem that might be addressed in the future.
We are worried. There are benefits to the bitcoin concept – digital cash, digital currencies. But at the same time, if you look at the way bitcoin works after there is a criminal act that takes place, you can’t rewind the clock and take back that currency.
For now, it seems like the main concern plaguing most governments is cracking down on fraudulent activity in crypto, with many calling for more transparency. Perhaps the problem in determining what crypto regulation should look like stems from the fact that the crypto sphere is constantly evolving – a factor that definitely contributes to the high volatility of the market. Although many world governments are taking measures to tighten its grip on crypto, it appears the U.S. will postpone regulation until it has a better picture of the crypto world.
