United States Could Not Lead Cryptocurrency Innovations Says Ex-Market Regulator

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The cryptocurrency market has been growing during the last year and it can keep doing it during 2018. Countries have been trying to avoid the side effects of cryptocurrencies by regulating the environment. At the same time, other countries tried to attract cryptocurrency investments with flexible regulations and a friendly approach towards them. But the United States, the leading country, could be left behind crypto innovations, according to an ex-market regulator.

United States Cryptocurrency Innovations

The former Commodity Futures Trading Commission (CFTC) chairman Jim Newsome, said on Thursday that the US Should be careful when implementing regulations. If it does not take special measures, it could be left behind by the rest of the world.

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Newsome is now working advising cryptocurrency developers, exchanges, and miners. He made these comments while speaking during the annual meeting of the Digital Chamber of Commerce. Paul Atkins, former SEC commissioner, was present at the meeting as well.

The two ex-market regulators should present a report about best practices for crypto purchases and issuers. But there was a problem with the project. Apparently, it was more complicated than previously thought.

Furthermore, Mr Newsome said that he believes that there is not such thing as a Cryptocurrency bubble. He explained that the industry is not big enough and that institutional investors are still on the side-lines.

At the moment, several countries are creating favourable environments for cryptocurrencies to spread. Additionally, crypto investments are growing in these places that the regulations are clear, but not heavy for the enterprises working in the industry.

Besides that, other countries without regulations are seeing their institutions and crypto enterprises trying to regulate themselves. That gives safety to investors that want to place their money there and a clear legal framework in case it is needed.

SEC Statement About Crypto Regulations

In a previous article, we wrote about the regulations that the SEC is trying to impose to cryptocurrency exchanges.

In a statement released by the SEC, it warns that cryptocurrency investors should not trust cryptocurrency exchanges. Some of them seem to be regulated, but the reality is that they are not.

The statement reads:

“A number of these platforms provide a mechanism for trading assets that meet the definition of a “security” under the federal securities laws. If a platform offers trading of digital assets that are securities and operates as an “exchange,” as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration.”

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