The US government needs to regulate bitcoin because, despite being virtual currencies, they are owned by real people. But it must figure out what it is to effectively regulate cryptocurrencies and bitcoin while promoting technological growth.
New technology, old suits
The members of the house of the 114th congress have an average age of 57 years while the Senators is 61 years. Almost all these members have little or no experience with bitcoin exchange and the cryptocurrency market.
The verified bitcoin exchange supporters in Washington can be counted on two hands. This is an indication that they may not know what it is as well as how it can be regulated.
As such, the members of Congress are finding it difficult to understand the growing technology that threatens to destabilize the government and central bank’s control over currency.
Some may argue that the cryptocurrency doesn’t affect the economic policy positively and that it makes it worse. This long wait is not helping the market in the US.
The market continues to dip while the institutional investors watch to see what transpires, but no one is sure about the regulations that will be imposed on specific aspects of the market.
It is a question of who is going to take the front row and regulate this budding market. Users cannot expect multiple parties with several rule-sets regulating it. This is where Congress comes in. They can pass uniform laws to this effect. Such regulations will help protect investors from fraud.
Until then, the government’s tax collectors will continue to rake in revenue from bitcoin and cryptocurrency while making sure the USD monopoly remains firmly intact.
Currently, Europe is leading the frontline in the promotion of the Blockchain technology, hence the move by big companies to their shores. The US must act fast to join the train.