It has been a bumpy ride for fans of Bitcoin as well as US government officials coming to terms with the emergence of cryptocurrencies, but now both sides are smoothing out as the US government finally introduces regulations.
In 2017 when cryptos made their most notable bull run yet the US government was looking for ways to shut it down. It was at this time that people really took note of the sheer number of ICOs (Initial Coin Offerings) selling cryptocurrencies as a product that could rise in value at any given time.
The government’s first concern was that these firms were operating outside of FSA regulations. With no regulations in place, some ICOs were guilty of, and could freely manipulate, Ponzi schemes – around 0.5% of them in total – which was enough of a reason for US government financial bigwigs to look toward introducing laws that would outlaw cryptos and ICOs.
Crypto Meets Mainstream US Banking
Yet just a little over 3 years on from that point in time, the US government has taken a remarkable U-turn and is arguably the most influential advocate of cryptos today!
Just this month the US government-backed a policy that approves nationally charted banks to offer its customers crypto custodial services – a service that already exists in EU countries such as Germany. This means all US national banks are now able to hold crypto wallets and offer these services to their clientele.
In a move dubbed ‘Crypto Meets US banking’, the price of cryptos immediately started to jump. This just shows how influential the US government’s approval is on the crypto market and immediate price hikes in the value of cryptos should come as no surprise considering the US is the world’s largest economy, worth $22 Trillion!
US Federal Court Recognises Crypto as a Form of Money
Another interesting piece of news related to Bitcoin is that a ‘US Federal Court’ confirmed that BTC is a form of money. The case brought to the court was a fraud charge against Larry Dean Harmon who operated an underground crypto exchange – Helix – on the Dark Net.
Harmon’s attorneys attempted to dismiss the case forcing the Federal Court’s hand on the US government’s stance on the status of Bitcoin. For the indictment to stand BTC must be a form of money, and as the government did not want to let Harmon off the hook, the Federal Court ruled that BTC is money.
New York Regulators Approve 10 Cryptocurrencies
With all the commotion building up from the US government approval of custodians offered to customers by licensed US banks, and BTC officially recognised by US Federal Courts (Not ‘State’ but ‘Federal’), The New York State Department of Financial Services (NYDFS) was already on top of the crypto sphere’s latest hot topic!
New York’s financial market is the largest in the world. Bankers often compare NYC’s finance to that of Rome and Gladiators where only the best Gladiators battled it out in the biggest arena in the world. And, with NYC already regulating cryptocurrency custodians, it was easy for the NYDFS to quickly create a green list of cryptos approved for custody and listing.
10 Approved for Custody: Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), Ethereum (ETH), Ethereum Classic (ETC), Ripple (XRP), USD (BUSD), Gemini Dollar (GUSD), Paxos Standard (PAX), and Pax Gold (PAXG).
8 Approved for Listing: Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), Ethereum (ETH), USD (BUSD), Gemini Dollar (GUSD), Paxos Standard (PAX), and Pax Gold (PAXG).
Yet another official announcement coming out of the US economy sent crypto prices into a frenzy – especially those approved by the NYDFS as the assumption is other states will follow suit given that NYC is the leader in cryptocurrency finance in the country.
Why Has The Us Government made Its U-Turn On Cryptocurrency?
What exactly changed the US government’s mind when it comes to ICOs and cryptocurrencies is unclear, but it does look as if the US is bracing itself for a new era of digital currencies.
Maybe it is the fact that blockchain tech has so many positive solutions. Every crypto has a blockchain ecosystem with a software solution to a current technological bottleneck embedded into its framework, and for this tech to emerge, the formation of ICOs means tech start-ups can get the funding required to create this new disruptive technology!
It could also be because places such as Europe already put regulations in place long before the US. Across the pond blockchain tech and cryptos have created an entirely new digital economy that is thriving.
Cryptos are used for eComm retail sales speeding up transaction times, trading creates tax revenues, investment in cryptos has the potential to create wealth, and online entertainment is yet another source of tax revenue, while ICOs create more jobs in the tech industry.
The number of jobs being created in the eSports and online gambling industries in Europe is huge. Not only do these cryptocurrency online casinos and sports betting sites create huge tax revenues, but they also create numerous jobs for IT staff and customer services agents in call centres.
You only need to take a look at Playcasino and read the reviews of the best Bitcoin casinos to see just how many online casinos that accept cryptos are currently operating under strict remote gambling licenses overseen by European governments. The industry is fully regulated, creates billions in tax revenues for the governments their respective juristic license agreements fall under.
The US may be looking over to Europe and feels that if cryptocurrency is good enough for European citizens, then it must be good enough for US citizens. On top of this, Europe has given tech firms the ability to freely create blockchain tech and the US certainly does not want to fall behind on what could be the next big technological advancement in the world of IT.