Founder of U.S. Digital Chamber of Commerce Says Lack of Binding Guidance on Crypto Leaves Industry in Limbo
The rising tensions between the US and Iran have led to discussions and arguments supporting the claim that Bitcoin (BTC), the world’s most dominant cryptocurrency, might become a safe haven asset.
Blockchain influencer Perianne Boring, founder of the US Digital Chamber of Commerce, points out that this isn’t the first time Bitcoin has surged amidst global unrest and uncertainty.
In a recent interview with BlockTV, Boring confirms that Bitcoin experienced a 99-day bull run during the Cypriot financial crisis in 2013, which lasted from January of that year until April.
“This is a testament to the purpose of this technology. This is proof that Bitcoin can serve as an alternative to the government-sponsored medium of exchange, and that there are other alternatives people can opt for.”
“The U.S. Securities and Exchange Commission has invested significant resources into the crypto token space. That in itself is a good thing, as it allows us to have conversations and also move the legal and regulatory issues forward. The bigger issue is that it is now 2020 and we still do not have binding guidance on the clarification of digital assets. The government is very much picking winners and losers in our space through speeches and statements, so both the chair of the SEC and the CFTC have addressed Bitcoin and Ether saying that they are not securities – they are commodities. But the rest of the tokens are in complete legal limbo.”
“Speeches and statements are not binding, meaning they’re not binding to the Commission itself. So this is not something that’s going to pass the legal process for regulated organizations that need a predictable legal environment to build and innovate.”
She claims that these types of actions would be unacceptable in other industries and that it’s beginning to create all sorts of problems and challenges. Messaging services Kik and Telegram have been challenging the SEC’s rulings, Boring confirms.
She recommends that US financial regulators clarify when a digital token may be considered a security and when it’s not. Other jurisdictions that have more progressive regulatory policies are moving forward while the US, she concludes, is lagging behind.
With respect to Binance.US, which the US Digital Chamber of Commerce recently welcomed to its executive committee, Boring says Binance has experienced tremendous success globally and now the exchange is making substantial investments in the US markets.
However, she points out that the US federal government is “a very complicated organism” and a lot of agencies and stakeholders are experiencing challenges because it’s difficult to get the government bodies to come together and formulate a plan of action.