Cryptocurrencies have come a long way in terms of industry growth and innovation of the technology. Despite being deployed across several sectors and core industries, regulators continue to provide no clear regulations about how cryptocurrencies fit into the global economy.
The United States of America, being one of the biggest cryptocurrency and blockchain nations, has often been criticized due to its lack of proper regulatory infrastructure or frameworks for the industry.
Despite all the regulatory uncertainty, the nation is home to some of the crypto-industry giants. Several new bills have also been introduced that justify the place of digital assets within the US economy.
While cryptocurrencies continue to be a controversial topic, regulators tend to express their position on virtual money and digital assets every now and then. Some of them are bullish towards the industry while others seek to completely curb it.
An alternative to the BitLicense
The latest to propose policies for the cryptocurrencies in America is the New York State Department of Financial Services (NYDFS). According to a report from the New York Post, the NYDFS has now proposed new licensing rules for crypto-based companies that allow these companies to engage in cryptocurrency business within the State.
The report notes that the regulator is asking for the opinion of the public on this proposed legislation that is aimed at easing the regulations currently imposed on crypto-related businesses. The public has been requested to share their feedback by August 10.
The new policies will take a stab at simplifying the process of acquiring the state’s BitLicense which was launched in 2015. This is a mandatory license that every crypto business must be granted before initiating operations in New York.
Over the 5 years of the BitLicense’s existence, only 25 organizations have managed to procure it. The process is a lengthy one and often takes years to be obtained.
If the new proposal comes into play, businesses wanting to set up shop in the state of New York would be able to acquire a ‘conditional license’ that allows it to collaborate with the already licensed business to engage in digital currency endeavours.
Adding to this, another proposal from the regulators involves the offering and usage of new coins. License holders would be able to choose from a set of pre-approved coins provided by the NYFDS, and then they would be able to self-certify the usage without having to receive any additional approval.
Prior to this, The House of Representatives and U.S. Senators proposed a total of 32 bills that aim to provide regulatory clarity about the trending technology in the USA in 2020. The said bills discuss various sides of regulating cryptocurrencies like regulatory frameworks, blockchain regulations, and the idea of a ‘Digital Dollar.’
Global adoption is still a long story, but the entire industry has grown immensely in a trifling amount of time compared to the fiat economy. As more nations become interested in the implications of cryptocurrencies, one can hope that regulations would soon be devised in favour of the crypto economy.
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