Topic: ATTN: U.S. Persons/Businesses in Bitcoin/crypto, please pay attention (Read 162 times)

Hi All,

I am writing this message because I want to draw your attention to a very important issue that the Bitcoin and cryptocurrency industry as a whole is going to have to confront in the near future: regulation in the U.S. marketplace.

Here is a recent, brief article that goes over a joint op-ed that was in the Wall Street Journal the other day:

SEC, CFTC Chiefs Eye Closer Crypto Scrutiny
https://www.coindesk.com/sec-cftc-chiefs-eye-closer-scrutiny-of-us-cryptocurrency-industry/

I have a good amount of experience dealing with Federal regulators and I can tell you that I am growing concerned by what I'm observing in a subtle shift in the writings and speeches of key officials at the Securities and Exchange Commission and the Commodity Futures Trading Commission toward crypto over the past 6-9 months.  Long story short, at this point, I expect that a rulemaking or at the very least an ANPR (advance notice of proposed rulemaking) will begin this year.  It's definitely called for in some form considering the ICO scams and hacks that have taken place, but we need to make sure they don't go too far and I am beginning to see that as a real risk!

My view: Cryptocurrency represents a true paradigm shift that could improve humanity in many ways.  I do not want this to be regulated such that only financial institutions and securities brokerages are able to deal in cryptocurrency.  In theory, regulations requiring bank-level supervisory obligations, or even limiting it to chartered banks or FINRA securities businesses, could be imposed on the creation of any units of cryptocurrency (i.e. ICO/ITOs and mining).  If the end result of the coming regulations is that only banks can issue cryptocurrency, what have we really gained?  I believe that level of regulation would kill innovation in what is a rapidly emerging but still (in the grand scheme of things) tiny, cottage industry.  Of course, I know that Bitcoin cannot truly be "controlled".  However, the wrong level of regulation could effectively make it very difficult to innovate at the current rate.  You are seeing some of this happen around the world, in South Korea, for example.

We as an industry need to get out in front of this to ensure that regulations will not stifle innovation.  This is really not about Bitcoin vs Bcash vs Ethereum vs 1500 other cryptos.  This is something that we should all be working together on.  If we don't get involved in this process and shape the regulations, the industry will be forced to deal with regulations that are shaped by others.  I've seen first hand how damaging that can be to businesses.

Coin Center is a non-profit advocacy organization that is doing great work in this area.  But I have to be honest with you, the financial services lobby (traditional banks/brokerages) is extremely powerful, and they're woke to the potential of Bitcoin and other cryptocurrencies.  They are very much on the other side of this issue.  We will need more voices at the table, this is a big deal if it goes the wrong way.

My organization, BTRIC, is launching right now and one of our big focuses is to advocate for policies that are light-touch, common sense, and enable -- rather than stifle -- innovation.  We look forward to working with Coin Center and others to make sure our field is not regulated to death.  We have plans for outreach and advocacy that will work with state regulators (feedback from State governments are given the utmost attention by the regulators) to ensure that innovation is not stifled.  Our organization is doing other things too in working with regulators to promote economic development in FinTech, but right now I see the coming regulations as a big challenge we need to focus on.  If handled right, it could be a great opportunity.

I am reaching out to ask for your support in helping to get our organization off the ground so that we can make sure we're at the table with the regulators protecting innovation.  You can contribute to our Founding Donor fundraiser in many cryptos (and fiat) on our website at https://www.btric.org.  If you want to use a "collection jar" for Bitcoin, our address is 1btricdjXr4uAFnxPULmzpXmaVWnP25o6.  Donations are tax-deductible, I can get you a receipt if you use the checkout on our site or if you email us at [email protected].

If anyone would like to reach out to discuss this further (in a less public setting), please reach out to me here, on Twitter, or on Telegram.  Please pass this message along to anyone you think would have an interest in getting involved, either as a contributor or as part of the team we're building.  I look forward to working together with you.

Best regards,
Ben