U.S Congress Discusses Regulating Cryptocurrencies and ICOs

A new attempt for putting a limit for all the current controversy with regard to cryptocurrency and ICOs and how they should be treated and classified.

December 05, 2018 | AtoZ Markets –U.S congressman Warren Davidson has announced plans for regulating cryptocurrencies and initial coin offering (ICO), at the recently-held Blockchain Solutions conference.

In the details of the news, Davidson presented a bill, on Dec. 03, which would create an “asset class” for cryptocurrencies and digital assets, for preventing them from being regarded as securities, “but would also allow the federal government to regulate initial coin offerings more effectively.”, as the congressman explained.

Non-consensus in how each financial body treats cryptos

Most cryptocurrencies are being treated as securities, as the Securities and Exchanges Commission (SEC) look at them, while they are more of commodities than securities in the sight of the Commodity Futures Trading Commission (CFTC), where the latter for instance, considers Bitcoin BTC to be something as gold, more than being a currency to use for payment, because it lacks the governmental support, while the aforementioned digital currency is looked as money, according to the Financial Crimes Enforcement Network (FINCEN), the agency managing anti-money laundering (AML) and know your client (KYC) standards.

Other official bodies like the U.S Office of Foreign Assets Control (OFAC), which is in charge of implementing economic sanctions, regards cryptos as money and blacklists wallets of persons under sanctions, whereas the Internal Revenue Service (IRS) looks at cryptocurrencies as properties, and that is why there are claims to impose taxes on the profits made of selling them.

It is no secret that the financial venue currently witnesses controversy in that regard, as the state regulatory agencies treat tokens according to how their labels can contain those tokens under their jurisdictions, the thing that makes the newly-suggested bill necessary for brining clarity in how to regulate cryptos.

Davidson’s bill comes in parallel with the increased openness toward the blockchain the state of Ohio is witnessing nowadays, where in a recent news, the state was said to get more than $300 million in support of the blockchain startups, approximately by the end of 2021.

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