The current state of blockchain innovation in the US is the story of two asset classes. On the one hand, the SEC’s reluctance to accept or approve blockchain-based securities has led to innovation in the sector. On the one hand, banking, remittance and commodities regulators have shown a willingness to partner with blockchain companies to allow the deployment of assets and asset classes in these locations. As a result, non-blockchain assets and non-securities businesses have proliferated in recent years.

After years of insane ICOs, the Securities and Exchange Commission and the Financial Industry Regulatory Authority, or FINRA, remain hesitant to adopt these asset classes. FINRA has approved only a few of the many applications received from cryptocurrency brokers. Despite numerous retail orders and filings, the Securities and Exchange Commission (SEC) has yet to approve the fund to trade on the bitcoin exchange, citing concerns about market manipulation while continuing efforts to secure the distribution of the tokens they are considering. paperwork. Financially, it appears in Telegram and Kik cases.

As a result, blockchain-based stock activity is still limited. For example, on July 10, 2019, the Securities and Exchange Commission (SEC) was authorized to offer Blockstack tokens for stacks (STX) under Level 2 of Rule A. As of August 2020, there is no exchange system or licensed alternative for US buyers. trading system. or ATS, where investors can buy, sell or exchange tokens. Or consider tZERO, which runs the ATS to facilitate trade in security tokens. Although tZERO has received SEC approval to offer trading some assets to non-accredited investors, tZERO is showing very few tokens to trade on August 20.

In contrast, non-securities blockchain assets and companies have spread by 2020. American cryptocurrency exchanges like Coinbase and Gemini have added new assets. Tokens with the highest global market value and trading volume are not security tokens. Bitcoin (BTC) alone has a market value of over $ 200 billion. Then there are Ether (ETH), Ripple (XRP), Tether (USDT), Bitcoin Cash (BCH) and others – not all securities. The relative clarity and flexibility of the US regulatory capacity in this area has attracted much of the industry’s innovation.

The creation, sale and distribution of non-security tokens in the United States is certainly not without regulatory complexities. The companies managing these digital assets are required to comply with various AML / CFT obligations under the Bank Secrecy Law. Financial services companies such as stock exchanges and portfolio secretaries must register not only with the Financial Crime Network, but also in the many countries in which they operate. More than half of the states now have some form of licensing for digital currency companies.

In addition, the Uniform Law Commission issued the Uniform Regulation of Virtual Currency Business Law on the premise that predictable rules specifically designed for virtual currency entities would provide them with assurances that states would regulate them like other financial service providers.

The International Financial Action Task Force (FATF) has published its own guidelines on how digital asset issuers and trading platforms can fight money laundering. Consequently, non-securities blockchain companies have a maze of rules to navigate, even though the governing regulators have shown a great willingness to work on solutions.

In fact, some of these authorities have shown enthusiasm for blockchain technology. Of particular note is the fact that the Office of the Comptroller of the Currency (OCC) – an independent treasury that leases, regulates and monitors national banks – is currently headed by Acting Comptroller Brian Brooks, former legal head of cryptocurrency exchange Coinbase. Many argue that Brooks aims to make OCC the leading cryptocurrency regulator. The OCC recently announced that national banks could offer cryptocurrency services, and in May Brooks presented a concept for exploring a national payments charter for crypto companies.

Source: CoinTelegraph

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