Cryptocurrency

House Subcommittee Holds First Ever Hearing On Crypto

The US House of Representatives finally gave important attention to the burgeoning cryptocurrency market this past Monday.

On March 14th, 2018 the Capital Markets and Investments subcommittee held a testimony entitled “Examining Cryptocurrencies & ICO markets.”crypto

The hearing took place in the Rayburn House Office Building, featuring several key industry movers as the participants. For the witnesses, the subcommittee invited Mike Lempres (the Chief Legal and Risk Operator at Coinbase), Peter Van Valkenburgh (the Director of Research at CoinCenter), Robert Rosenblum (partner at law firm Wilson Sonsini Goodrich & Rosati), and Dr. Chris Brummer (A Professor of Law at Georgetown).

According to the hearing’s memorandum, the subcommittee wants to “conduct an overview of the cryptocurrency and Initial Coin Offering markets.”  As an emerging asset class, cryptocurrencies “have been growing very rapidly and attracting a significant amount of attention from investors.” the memorandum states.

The hearing seems to suggest that the market’s explosive growth has gotten to the House’s attention.  

It’s a topic United States officials feel that they can no longer ignore, and the subcommittee will look to the “efficiencies and potential capital formation that cryptocurrencies and ICOs offer”, with a goal to “review the adherence to applicable laws so that investors receive the full protections afforded by federal securities laws.” This will include “the current regulatory approach that regulators, such as the Securities and Exchange Commission, are using to monitor cryptocurrencies as well as ICOs and how to achieve further regulatory clarity in these markets.”

Hopefully, said “clarity” Will Be one of the Main Takeaways

The US Senate only recently held its own hearing regarding cryptocurrencies and blockchain technology.  Christ Giancarlo of the CFTC and Jay Clayton of the SEC both gave testimony, vouching for their agencies’ roles in the matter as well as the regulatory parameters currently in place.

Nevertheless, the meeting breached the topic of regulation in the United States.  With the IRS labeling cryptocurrency as property for tax purposes, the Securities and Exchange Commission branding ICOs and the tokens they offer as securities as well as a federal judge ruling on behalf of the CFTC that cryptocurrencies are commodities, the United State’s regulatory landscape is charted however ill-mapped at the moment.  The question that lingers is what form regulations will take, and how these United States legislators intend to define cryptocurrencies in formal government policy and legal legislation.

We at CryptoBuzz News Network hope the House’s hearing will clear some prevalent legal discrepancies to give United States citizens a better direction as to where cryptocurrency regulations are heading in the future.

Olé Crypto,

CBNN

 

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