CRYPTO INSIDE THE HOUSE (OF REPRESENTATIVES)

Last week we witnessed an unprecedented event. CEOs of the largest crypto businesses across the United States were heard by the House of Representatives of the US Congress.

In a relatively orderly fashion, the tech executives shared their views with the country’s politicians regarding the need of having a regulatory framework that, yes, puts order in the way bitcoin and its alike run through the veins of capitalism but more importantly, provide a clear picture on how the business rules should be interpreted.

No more, no less. Clarity was the only thing that the crypto community asked the lawmakers of the United States.

This is the way to do things. Smart people looking for a fair go in an efficient market.

No old-school lobbyist asking the politicians for reduced taxes (only for a few), monopolies for 30 years or more, and even worse, to turn the eye blind to poor working conditions or environmental damages.

It’s not going to be easy but considering all circumstances, the level of attention that the Legislative power of the largest economy of the world is giving to crypto is something to acknowledge.

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What can we expect out of all of these?

Our take is that in the first wave, we are going to see a federal licensing scheme for crypto exchanges in parallel to a State process similar to the banking regime and a more focused IRS in regards to crypto (realized gains) in tax returns.

However, the required modifications in the JOBS Act (Jumpstart Our Business Startups) to reflect the existence of Utility tokens as a sound fundraising strategy will have to wait a bit. So we will continue to see a view from the SEC that everything is a Security until proven otherwise for the time being.

But don’t despair because meanwhile, more bitcoin miners are relocating in the country, Florida joined Texas as a crypto-friendly State and more and more service providers of Investment products for retirement are offering exposure to their clients.

Thanks for allowing us to be one of the voices of the Crypto Hedge Fund industry and feel free to share your views on this critical topic in the comments below.

Yours in crypto.

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