Rep. Davidson Says Cryptocurrencies Need ‘Light Touch’ Regulation

U.S. Rep. Warren Davidson, R-Ohio, said he wants to see “regulatory clarity” in the cryptocurrency market during a discussion with industry experts and lawmakers. 

http://www.govtech.com/policy/Lawmaker-Says-Cryptocurrencies-Need-Light-Touch-Regulation.html 

Some key takeaways: 

(TNS) — U.S. Rep. Warren Davidson said he wants to see “regulatory clarity” in the cryptocurrency market after a discussion with industry experts and lawmakers.

Davidson, R-Ohio, indends to introduce a House bill that would offer what he calls a “light-touch” regulation of the burgeoning and complex cryptocurrency market, which he discussed at Tuesday’s “Legislating Certainty for Cryptocurrencies” roundtable with fellow lawmakers and representatives from nearly 50 from finance firms and cryptocurrency businesses. ...

Davidson said offering regulation will offer foresight — which will solve problems and avoid harm — in an industry where innovations in the cryptocurrency technology blockchain “have outpaced current law and court decisions.”

“With a thoughtful, bipartisan approach that protects consumers, advances free market solutions, and defines safe-harbors for the earliest stage innovators, Congress can send a powerful message around the world that the U.S. is the best destination for ICO markets,” he said.

Europe has become a haven for cryptocurrency companies as they’re locating to regulation-friendly countries, like Malta and Switzerland, which are writing the rules for the industry to operate, according to Bloomberg.com. The market in the United States right now is small, but Davidson said it’s roughly a $500 billion industry where “Bitcoin itself is almost half of that.”

“The Swiss have put a framework in place that is driving capital flows there, so there’s certainty,” he said.

The concern in the United States, Davidson said, is fraud. There’s uncertainty if what these ICOs are going to be securities, or if they are actually commodities.

“We have to protect consumers,” he said.

Fully article: 

http://www.govtech.com/policy/Lawmaker-Says-Cryptocurrencies-Need-Light-Touch-Regulation.html