Congress Hearing: Examining Cryptocurrencies and ICOs🇺🇸
Often times, consumers interpret regulations as barriers; obstacles that stymie innovation. This stance is entirely unfortunate because a firm, transparent regulatory atmosphere is ideal for innovation. With regulations, investors and inventors alike benefit from the protective constructs resultant of regulations. Therefore, entrepreneurs, venture capitalists, and innovators, for instance, can thrive, fostering the development of new beneficial products and services for business and consumers.
A quandary the crypto market currently faces involves how the United States Congress plans to regulate digital currency. With there being few, if at all, incumbents in government who understand digital currencies, many regulators are uninformed and, therefore, over complicating how to regulate the crypto market, causing many to believe there must be a new scheme to regulate cryptocurrency.
Developing a new system to regulate cryptocurrency is unnecessary. Per Mike Lempres, the Chief Legal and Risk Officer at Coinbase, who spoke at today’s Congress Hearing: Examining Cryptocurrencies and ICOs, digital currencies and spot markets can be properly regulated under present laws. He further digressed by stating that a new regulatory scheme and legal missteps could unintentionally damage the incredible benefits of cryptocurrency. Therefore, regulating the market under current law would be most advantageous, ensuring the longevity of cryptospace.
In addition to the aforementioned, there is much to address from the hearing, particularly news concerning Coinbase. Under the present regulatory system, Coinbase, which is a spot market, operates within legal CFTC standard, solidifying Coinbase as, in our eyes, the most ethically operating exchange in all of crypto. Further, of the four cryptocurrencies exchanged on Coinbase - Bitcoin, Bitcoin Cash, Ethereum, and Litecoin - each, according to several federal court decisions, is viewed as a digital currency, not a security.
This makes us increasingly bullish on those 4 big cap coins for our longer term porfolio positions, as they've stood the test of time.