According to Roger Huang of Forbes, cryptocurrencies are not unregulated, they are unlegislated which could be much worse.
Many people, including financial experts contend that the cryptocurrency sector is in a lawless Wild West stage and the lawless movement could trigger a crippling financial crisis.
Huang acknowledges countries such as China that have clamped down on the crypto world, not allowing exchanges to operate in the country and the noted ICO clamp down that has taken affect in several places around the world.
In the United States, lawmakers have let the regulatory bodies deal with the new technology. Huang defines the US approach as a “copy and pasted” mixture of regulations that doesn’t quite fit and masses of people are left unsure of the state of the rules and standards.
Back in 2016 Representatives Jared Polis, a Colorado Democrat, and Mick Mulvaney, a republican from South Carolina, announced the formation of a new bipartisan Blockchain Caucus. The bipartisan effort would be dedicated to the analysis cryptocurrency, how it will affect the country and what legislative steps should be taken regarding digital assets.
Mulvaney has since been appointed by President Donald Trump as the director of the Office of Management and Budget and can now support the technology from a higher perch. “Blockchain technology has the potential to revolutionize the financial services industry, the U.S. economy, and the delivery of government services.”
The Blockchain Caucus has not made much headway in terms of mass adoption, and the movement has faced resistance from other members of Congress such as the Californian Representative Brad Sherman who argues that buying cryptocurrency should be banned for Americans altogether.
As congress sits on decisions regarding blockchain and cryptocurrency and regulatory agencies apply old rules that are not tailored made for cryptocurrency it will harm the overall growth and maturation of not only the markets but the technology itself.
The US Federal Reserve and the Commodity Futures Trading Commission have taken a “do no harm” approach to crypto and the SEC continues to investigate, but keeps delaying decisions regarding cryptocurrency. Huang argues that the “haphazard” formation of crypto regulations needs to end and a true direction must be formed for the overall health of the market.