Today Representative Don Beyer (D-VA) introduced the Digital Asset Market Structure and Investor Protection Act. The legislation seeks “to protect consumers and promote innovation” by sweeping Bitcoin with other digital assets into existing financial regulatory structures.
As Beyer put it, “Innovation in the digital asset sector is creating new goods and services every day as well as many new, high-quality jobs. The United States should provide a legal and regulatory environment which promotes this type of innovation and growth.”
It is clear Beyer finds the best method to promote technological innovation at home is through increased regulation and government oversight. The bill’s introduction implies Beyer believes citizens are not capable of assessing and mitigating the inherent risks of being the custodians of their own wealth, despite the fact that humans have been choosing and custodying their own hard stores of value for thousands of years.
Beyer went on to say that while “Digital assets and blockchain technology hold great promise,” and while it’s clear Bitcoin is here to stay, “Unfortunately, the current digital asset market structure and regulatory framework is ambiguous and dangerous for investors and consumers.”
Since 2008, tens of millions of ordinary Americans have adopted Bitcoin as a store of value and medium of exchange. It is the most decentralized digital asset ever created. Though, this bill fails to differentiate technically it from all of the other 11,000 plus centralized altcoins in existence.
The inability to differentiate between Bitcoin and the thousands of centralized securities that came in its wake, all of which are functionally pump-and-dump, get-rich-quick schemes, like Ether, is what perpetuates the misunderstanding among congressmen that Bitcoin is somehow anonymous or a vehicle for money laundering, ransom, and fraud, when in fact, buying Bitcoin is like leaving footprints in cement. Every transaction in the history of the Bitcoin ledger is publicly accessible. Physical U.S. dollars are a far better tool for facilitating criminal activity, because they can be used completely anonymously.
Nonetheless, Beyer persisted, “Digital asset holders have been subjected to rampant fraud, theft, and market manipulation for years, yet Congress has hitherto ignored the entreaties of industry experts and federal regulators to create a comprehensive legal framework. Our laws are behind the times, and my bill would start the long overdue process of updating them to give digital asset holders and investors basic protections.”
The bill comes just days after the senate rejected a proposed amendment to exclude U.S. Bitcoin entities from a “broker” designation. Despite being rejected, the proposed amendment received a commendable pushback from bitcoiners, businesses, and lawmakers alike, which identified many potential further voices and leaders who could help define policy on Bitcoin in Washington.
The Beyer bill’s seen and unseen implications are sure to become apparent in the following days and weeks as bitcoiners and legal experts parse it. Whatever its implication, Bitcoin is still completely transparent, and completely distributed. It has no centralized authority. It can’t be hacked. It can’t be inflated past 21 million. And Bitcoin will never be subject to any form of overt administrative control.
This is a developing story.
Immediately Consultant Don Beyer (D-VA) launched the Digital Asset Market Construction and Investor Safety Act. The laws seeks “to guard customers and promote innovation” by sweeping Bitcoin with different digital belongings into present monetary regulatory buildings.
As Beyer put it, “Innovation within the digital asset sector is creating new items and providers on daily basis in addition to many new, high-quality jobs. America ought to present a authorized and regulatory surroundings which promotes one of these innovation and development.”
It’s clear Beyer finds one of the best methodology to advertise technological innovation at house is thru elevated regulation and authorities oversight. The invoice’s introduction implies Beyer believes residents are usually not able to assessing and mitigating the inherent dangers of being the custodians of their very own wealth, even though people have been selecting and custodying their very own laborious shops of worth for hundreds of years.
Beyer went on to say that whereas “Digital belongings and blockchain expertise maintain nice promise,” and whereas it’s clear Bitcoin is right here to remain, “Sadly, the present digital asset market construction and regulatory framework is ambiguous and harmful for traders and customers.”
Since 2008, tens of hundreds of thousands of unusual Individuals have adopted Bitcoin as a retailer of worth and medium of alternate. It’s the most decentralized digital asset ever created. Although, this invoice fails to distinguish technically it from the entire different 11,000 plus centralized altcoins in existence.
The lack to distinguish between Bitcoin and the hundreds of centralized securities that got here in its wake, all of that are functionally pump-and-dump, get-rich-quick schemes, like Ether, is what perpetuates the misunderstanding amongst congressmen that Bitcoin is by some means nameless or a automobile for cash laundering, ransom, and fraud, when in truth, shopping for Bitcoin is like leaving footprints in cement. Each transaction within the historical past of the Bitcoin ledger is publicly accessible. Bodily U.S. {dollars} are a much better instrument for facilitating prison exercise, as a result of they can be utilized fully anonymously.
Nonetheless, Beyer continued, “Digital asset holders have been subjected to rampant fraud, theft, and market manipulation for years, but Congress has hitherto ignored the entreaties of trade specialists and federal regulators to create a complete authorized framework. Our legal guidelines are behind the occasions, and my invoice would begin the lengthy overdue technique of updating them to offer digital asset holders and traders fundamental protections.”
The invoice comes simply days after the senate rejected a proposed modification to exclude U.S. Bitcoin entities from a “dealer” designation. Regardless of being rejected, the proposed modification acquired a commendable pushback from bitcoiners, companies, and lawmakers alike, which recognized many potential additional voices and leaders who may assist outline coverage on Bitcoin in Washington.
The Beyer invoice’s seen and unseen implications are certain to turn into obvious within the following days and weeks as bitcoiners and authorized specialists parse it. No matter its implication, Bitcoin remains to be fully clear, and fully distributed. It has no centralized authority. It could actually’t be hacked. It could actually’t be inflated previous 21 million. And Bitcoin won’t ever be topic to any type of overt administrative management.
It is a growing story.
