The US which is virtually leading the cryptocurrency space still faces variations in standards across its states when dealing with digital coins. This is quite expected considering the fickle nature of the crypto market.
US state of Wyoming has set an example to the rest of the nation by passing bills and making endeavours to make it crypto friendly. Caitlin Long, a Wall Street veteran who has been actively participating in the Bitcoin community over a period, spoke about the current state of cryptocurrency regulation and taxation.
Caitlin Long continued,
“… we passed five bills last year and we have seven more coming in fact actually there in the committee hearing today two of them just passed the committee hearing. The one that’s most interesting… is the amendment which defines utility tokens as a class of property, a new class of digital property in Wyoming”.
Normally, property law is regulated by the state of Wyoming and since cryptocurrency cannot be considered as property, it stays unregulated by IRS or Feds. Caitlin cites that this has caused some concern since the financial watchdogs are deprived to leverage the state.
Besides, Caitlin Long emphasized that “Feds” and SEC’s chairman Jay Clayton has conflicting/opposite views as far as Wyoming’s laws related to cryptocurrencies are concerned. When high profile authorities debate on critical issues, its enforcement obviously takes longer.
The bills which Caitlin Long mentioned earlier are the HB 19, HB 101 and HB 126. The HB 126 is The Series LLC Bill which favours decentralized technology and fosters development of infrastructure to support cryptocurrency.
Ms.Long made it clear that what countries need is a well established regulatory body to govern the rules instead of blind taxation. The regulations should not become a burden to the common masses.
Furthermore, Ms.Long said that Bakkt or Fidelity and other big companies that are trying to enter the crypto-space. This could be a beneficial because they could with their subject matter experts help with the regulatory clauses.
Ms.Long summarized, “… and when Bakkt talked today about all the work that’s doing with Starbucks, that is about small payments and obviously if every Starbucks customer who pays with Bitcoin has to pay taxes on it that’s not good for Bakkt’s business so that’s one of the things I think that can help from a regulatory perspective.”
I personally feel we need more laws in crypto space which could tackle problems of inflation, crimes and money laundering. The technology being complex is slowly evolving and over a period we will feel its reach.