New York associate Steven Aquino discussed the current state of cryptocurrency regulations in an article that appeared earlier this month in a publication of the American Bar Association's (ABA) Corporate Counsel Division. The article, “Crypto, Part I: Regulating the Decentralized Universe of Cryptocurrencies,” is the first in a multipart series covering the basics of cryptocurrency, including its regulation. Read Part 2 here.
Steven begins with the history of Bitcoin, starting more than 13 years ago when Satoshi Nakamoto mined the first block of Bitcoin, kick-starting the phenomenon in modern finance. The popularity of the decentralized, digital currency has led to a push by governments and cryptocurrency investment firms for clear and defined regulations of cryptocurrencies.
In the article, Steven explains why a solid knowledge of the current state of ever-changing regulations is a must. "In the past year, at least nine bills aiming to regulate cryptocurrencies, digital assets, and related areas of the crypto sphere have been introduced. Only one has passed the House," he said. "However, even if passed into law, the legislation would not actually regulate cryptocurrencies but instead would require the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission to establish a working group to provide recommendations regarding digital asset market fairness and integrity, cybersecurity standards, and the reduction of fraud and manipulation.”
What these policies will look like remains to be seen, but what is clear, given the SEC’s stance on cryptocurrencies and digital assets, is that more regulation is on the horizon in the near future.
Steven provides detailed state-by-state information in the article and says that at the state level, crypto regulation can range from robust to light-handed, creating a patchwork of different requirements.
This article originally appeared on AmericanBar.org
Although we would like to hear from you, we cannot represent you until we know that doing so will not create a conflict of interest. Also, we cannot treat unsolicited information as confidential. Accordingly, please do not send us any information about any matter that may involve you until you receive a written statement from us that we represent you (an ‘engagement letter’).
By clicking the ACCEPT button, you agree that we may review any information you transmit to us. You recognize that our review of your information, even if you submitted it in a good faith effort to retain us, and, further, even if you consider it confidential, does not preclude us from representing another client directly adverse to you, even in a matter where that information could and will be used against you. Please click the ACCEPT button if you understand and accept the foregoing statement and wish to proceed.