Cryptocurrencies are reaching a crossroads in the US, and the future of crypto exchanges and ICOs are at stake. A roundtable is being hosted by Rep. Warren Davidson a Republican from Ohio who is in the process of drafting a bill on cryptocurrencies this fall.
Rep. Davidson is looking to bring a “light touch” to cryptocurrency legislation. He is encouraging input from industry experts and participants will include representatives from Coinbase, State Street and Fidelity.
Regulators have already been moving in the direction of classifying cryptocurrencies as securities which would fall under the strictest category. Davidson has argued that the roundtable is critical to avoid heavy-handed regulation which is sure to come. The Davidson bill would have multiple classes of tokens including utility tokens. This would follow a similar path as the Swiss regulators did.
The focus of the roundtable will be to address the persistent issue of fraud with cryptocurrencies and how to best protect the consumer. Wall Street will play a crucial role in helping determine how to deal with issues like custody and AML/KYC.
Some members of Congress are hostile to cryptocurrencies like Democrat Brad Sherman from California who has voiced concern over the criminal use of cryptocurrencies.
Hopefully, the roundtable produces a balanced approach to cryptocurrency regulation. It is critical that the US not over-regulate and hurt innovation.