Better meaning of existing laws while waiting for new ones
While waiting for new laws for cryptocurrencies, US regulation confirms that they are hoping for a good and very must friendlier law can come and a very good regulatory environment. This means the new market of blockchain and new entrepreneurial activities in the market. After that congress also told us that it can take a long time to come up with new laws for cryptocurrencies that mean we all have to get the good meaning of current laws first and also that comes under security and exchange.
All are hoping that the law can come in order in the next 12 months or it can take longer due to other works. There is also an election is coming so this is a good idea to be noticed and get approved for the new law of cryptocurrencies. There is another thing to take notice that some public's attention is on another topic so it is not beneficial or no danger in any way. It is time to not distract via social media or any other economic agenda. By the way, the new act will face and will compete for all these things and will get priority.
It is noticeable that under the legislation, CES moved a very small number. Likewise, the securities act of 1933, trust indenture act 1939, Sarbanes-Oxley act 2002, etc. Other acts came before 1940 and new ones are followed by 2002. Between 60 years there are no acts that have been released. SO the result is that it is hard to get a new law in 2020.
It is common that the acts were released because of the incidents that took place. The security acts 1933 and 1934 are known to be born of abuses known to the crash of 1929. And also the consumer protection act 2010 was applied in the global crisis after 2008.
The political attention was increased by the announcement of Libra in 2019. The representatives proposed a new bill to get the treatment of stable coins under act 1933. And today it is known as stable coin security act 2019. Actually, the bill was intended to limit the Libra project and thus it was immediately criticized. Thus, it was a danger to other stable coins as well. From 2013 there are 100 blockchain or fintech related proposals of legislative but only five passed. The success rate of the bill was 2% to 5%. The reason was that there was a lack of power behind these bills to pass.
No rules for blockchain
In 2019, 36 proposed for updating activities like accredited investor definition, cross-border applications, proxy rules exemption from voting advice, payment methods modernization, regulation s-k items modernization and other items as well. From these updates, some are going far. The bad thing is none of these rules included rules of blockchain or cryptocurrencies. And these activities took place without any relation to legislation. The bad thing is that the SEC did not show any support or willingness for cryptocurrencies rulemaking.
The released statements of SEC were not balanced with each other and also starting the new investigation. By all of these, the SEC left by telling craving for more clarity. Sadly no new rules. The SEC said the existing rules are good enough.
Only two companies filled the process: blockstack and younow and from that, only block state started to offer. Blockstake’s token value is one-third of its actual offering price so it is going to lose money for customers who were already investors. So, the consumers were not immune to losing money. Obviously, there were success factors but SEC was not interested. All of this gets to attract a new rule of blockchain and cryptocurrency.
After all of these, the Hester Peirce comes in the game. It shows hope to everyone. All are hoping for a new blockchain rule from him. He stated that he is concerned about how the SEC, he suggested getting a new path of all of this matter.
THE NEXT SEC CHAIR
Lots of thoughts in blockchain industries that the next chair of SEC will become Hester Peirce with the major change in leadership can bring new and positive regulations. While all these matters happen, we should not stop our work but we can dream about the new climate of blockchain and cryptocurrencies.
The whole world is expecting that the United States will lead on regulation for blockchain but SEC not answered. WE can wish for new brightness of congressional legislation also for new leadership of SEC.