We’re getting good news everywhere. Over the last two weeks, we’ve heard that Fidelity will be introducing products that’ll help mass adoption globally. We’ve heard that Morgan Stanley is coming into the crypto-space. We’ve heard that India is finally coming up with solid ways to let its citizens foray into cryptocurrency and blockchain technology. Now? A US member of Congress announced that he will introduce three new bills aimed at establishing laws that support the development of blockchain technologies as well as the use of cryptocurrency in the United States.
According to Rep. Tom Emmer (R-MN), the US needs to pass favorable legislation to the burgeoning blockchain industry if it hopes to remain a leader in this space. “The United States should prioritize accelerating the development of blockchain technology, and create an environment that enables the American private sector to lead on innovation and further growth, which is why I am introducing these bills.”
So what are these three crypto-friendly bills? The first is a House Resolution to express support for cryptocurrency and blockchain technology. As mentioned, this and two other bills are designed to bolster support in the use and development of blockchain technology in the United States. According to the Minnesota Republican as well as many industry leaders, the US government cannot do anything to stop their development. Therefore, the purpose of this House Resolution and the two other bills, is to provide clear, concise, and legal framework for their use in the United States.
The second bill will be called the Blockchain Regulatory Certainty Act (BBCA), and it will confirm that certain entities like cryptocurrency miners and multi-signature providers, who never fully take control of consumer funds, will not need to be registered as money transmitters. This is because they are only there to help validate the network’s integrity by providing more security for those who use the digital assets they help secure. This will be critically important to help sustain the ecosystem of miners, Proof-of-Stake (POS), Proof-of-Work (POW), etc etc, stay compliant and legal in the US.
The last bill, the Safe Harbor for Taxpayers with Forked Assets Act of 2018, aims to address confusion surrounding how to report gains made as a result of cryptocurrency forks to the Internal Revenue Service (IRS). Previously, there was little to not guidance from the IRS on this matter, so the bill will be used to give guidance to taxpayers regarding funds earned/gained via forked cryptocurrency. Furthermore, and most importantly, it will also protect individuals from facing fines until the IRS establishes some guidelines on how taxpayers are to report their digital assets.
What do you think? Is this a positive step for cryptocurrency here in the US? Let us know on our Facebook page here.
