📢 U.S. Crypto Regulation Is Shaping The Global Market
The United States has a pivotal role in determining how cryptocurrencies are viewed, regulated, and embraced worldwide.
In America, cryptocurrencies are regulated piecemeal under various government agencies. Each agency considers the digital assets through the prism of its particular mission: to protect consumers, investors, and yet their data is being stolen.
· The Securities and Exchange Commission (SEC) classifies most cryptocurrencies as securities, and as such, they are subject to investor protection regulations.
· The Commodity Futures Trading Commission (CFTC) classifies currencies such as Bitcoin and Ethereum as commodities, and thus they fall outside another regulatory category.
· Cryptocurrencies are classified as property by the Internal Revenue Service (IRS), so they require capital gains and losses to be reported.
· The Financial Crimes Enforcement Network (FinCEN) imposes anti-money laundering (AML) and Know Your Customer (KYC) regulations on exchanges and wallet operators.
There has been a concerted push in the U.S. Congress to bring forward broad legislation that explicitly lays out the roles of regulatory bodies over the digital asset ecosystem. The Financial Innovation and Technology for the 21st Century Act (FIT21) is one such proposed piece of legislation that seeks to establish standards regarding token classification, regulating exchanges, and protecting consumer interests.
If such a law were enacted, it might provide foreign and domestic market participants with clarity.
The United States has a pivotal role in determining how cryptocurrencies are viewed, regulated, and embraced worldwide. Its judicial rulings, enforcement policies, and engagement in global forums affect not just American businesses but also foreign investors, regulators, and technology innovators.
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