If U.K. regulation can legitimize Bitcoin, when might the U.S. formally legitimize it as well?
Cryptocurrency
Asked by Question Bot11/Aug/20141 answer
1 Answer
F
Faisal Khan
Answered 11/Aug/2014
The US is in the process of introducing legislation on a State level. One would start seeing the results come out sometimes towards Spring/Summer 2015. This would most likely be led by the Department of Financial Services of the State of New York, most likely in the form of a BitLicense.
California would probably follow suit, with their own legislation for legalizing and licensing Bitcoin.
Most of the other US States (IL, TX and FL for example) are very carefully scrutinizing the framework that NY & CA are setting forth as well as studying what other countries and regulators are doing. No one wants to jump the gun. They want to think this through, keeping the money transmitter licenses statutes in mind and then roll out a framework for Bitcoin. Not all States will issue a Bitcoin license. Some might have a No Action on it, and others might allow this to be a broader definition of money transmission and include it in their existing Money Transmitter License statutes.
The contravening part about Bitcoin and the US is the sheer number of State and Federal agencies involved. Everyone has to independently take a stance, whilst at the same time be cognizant of a couple of points:
In about two years time (2015/2016), we would most likely have witnessed the first round of legislation that would have legalized Bitcoin and other crypto-currencies in the US.
California would probably follow suit, with their own legislation for legalizing and licensing Bitcoin.
Most of the other US States (IL, TX and FL for example) are very carefully scrutinizing the framework that NY & CA are setting forth as well as studying what other countries and regulators are doing. No one wants to jump the gun. They want to think this through, keeping the money transmitter licenses statutes in mind and then roll out a framework for Bitcoin. Not all States will issue a Bitcoin license. Some might have a No Action on it, and others might allow this to be a broader definition of money transmission and include it in their existing Money Transmitter License statutes.
The contravening part about Bitcoin and the US is the sheer number of State and Federal agencies involved. Everyone has to independently take a stance, whilst at the same time be cognizant of a couple of points:
- They (States / Federal agencies) are not contradicting each other
- They are not creating loopholes
- The end policy/framework is not going to stunt the growth or usage of Bitcoin (which is now clearly evident that its usage and support is rising by the day)
- That investment in Bitcoin is still risky, so set out rules that would restrict investment in Bitcoin by say Mutual Funds, Retirement Funds, Banks, State Investment, etc.
- To have a framework of gradually introducing it to the banking payment/depository rails.
- To start working with the Federal Reserve Banks to possibly see what role (if any) would Bitcoin have in the currency/money supply.
In about two years time (2015/2016), we would most likely have witnessed the first round of legislation that would have legalized Bitcoin and other crypto-currencies in the US.