Governments can sometimes make very rash decisions connected to something they don’t understand. In most cases, the “innovation” is restricted whether it is safe or not. Cryptocurrencies are the newest victim to the “fear policy”, as not too many government officials truly understand what it is and what it does. Or maybe they do understand and think it undermines their position?
One of the most prominent cases of the government clinging to its old ways regarding crypto regulations was documented by a Norwegian gaming website. This was done when Norway imposed serious regulations on gambling in order to retain their monopoly of the industry. In the article, it was clearly stated that cryptocurrencies were a threat to the two state-owned companies governing gambling, therefore it needed to be restricted (read the original article here).
Unfortunately, that has become a very unhealthy habit in the US as well. Especially in the state of Colorado, which is believed to be one of the harshest against digital assets. However, with everything gloomy, there is always hope. Thanks to three lawmakers, a new bill
The bill clearly states that the costs the state will have to endure in order to register cryptos as securities, far outweighs the benefits that the registration will offer. Therefore they have introduced the bill in order to exempt cryptos from being classified as securities in the first place. The bill specifies the purpose of cryptos as a means of purchasing goods and services.
It has been refused before
This is not the first time the state is facing this type of bill, however. Last year the government authorities had to debate on a similar bill called the “Virtual Currency Exemption Money Transmitters Act”. Unfortunately, the uneasiness that cryptos create in the higher-up classes managed to sway the voters to a point that the bill was refused.
In order to draft this bill, the lawmakers researched all of the processes connected to Blockchain and finance companies for the last half-year. In order to appeal to both sides of the political sphere, serious research and negotiations were also held with politicians of both parties as well.
There is hope
Eric Kintner, who is an attorney specializing in digital currency was elated to find the regulators more than willing to listen to the proposal. According to him in the past, it was immediately disregarded without even a thought or basic discussions. Thanks to this new mentality, Kintner has high hopes that the bill may actually pass, as the high authority figures’ concerns are met with perfect solutions. It may be a new boom of Blockchain companies in the US, with Colorado as its HQ.
Giorgi is a news reporter and financial analyst at www.forexnewsnow.com He has 3 years of experience in analyzing the financial markets of Forex and cryptocurrencies. He also likes making hidden jokes in his articles.