The United States in one of the countries that took a pretty conservative stance towards cryptocurrencies. The Securitas and Exchange Commission (SEC) consider digital currency as a security. SEC's long-term goal is to spread securities laws to everything crypto related; from digital wallets and crypto exchanges to Initial Coin Offerings (ICOs). There is a certain disdain towards cryptocurrencies in the US. Government officials have been pretty vocal about cryptocurrency misuses. Some of them even stated that cryptocurrencies aid criminal activity. In such hostile environment, any neutral view of the question in hand really matters. One of these views came from US Congressman Warren Davidson.
Davidson Convinced Regulation Will Bring Stability to ICO Market
In a CNBC interview, Davidson stated that there needs to be easy regulation of ICO sphere in order to ensure investors safety. The main motivation behind these regulations will be possible stability and certainty of the market. He explained the confusion that recently happened when people could not get an agreement whether Ether is a security or a commodity. This is a pretty serious issue that needs to be addressed as soon as possible. SEC considers Ether as a security, but Davidson is not convinced. He also stated that everything looks as security to security regulators, obviously criticizing SEC's stance on the matter.
Davidson in detail explained what light-touch regulations mean. The basic idea of these regulations is to prevent further confusion. He stated that there is currently a regulatory arbitrage going on in crypto world, also launching an ICO is extremely complicated and project founders are creating whitepapers instead of security offerings which just brings more and more confusion and uncertainty to the field.
On the other hand, regarding consumers, all this confusion leads to fear of fraud and people are very careful and suspicious when investing in cryptocurrencies. Davidson hopes that further regulations will protect the customers from these events.
He also noted that blockchain technology is truly transformative in a way that internet was. Davidson's picture of future US laws regarding cryptocurrencies is a rather clear one with the basic framework in which both companies and consumers could operate. He clearly stated that he does not want a giant number of court hearings because of unclear laws.
Hosts of the interview laid out their concern about cryptocurrencies being the currency of choice for criminal activity because it is untraceable. Davidson calmly repelled these accusations stating that blockchain ledger is not completely untraceable and that he is not completely sure that cryptocurrencies are the currency of choice for that kind of activity.
This interview presents a very favorable event for the crypto community as is has showcased US government official with crypto friendly views. The US will certainly need to something about future regulations and it is a great thing to have some views that are different than SEC's. It is important that they found a clear way of implementing regulations as they cannot be too harsh towards the crypto community. Also, they need to provide some sort of stability and safety to all participants in the market. It is not going to be an easy job, but let us hope they are going to do it right.
What do you think about this interview? Is public perception of cryptocurrencies slowly changing in the US?