When you think about the United States government cracking down on Crypto scams, what comes to your mind first?
Most likely, given the volume of news on the subject, the majority of you would say the SEC or perhaps, the CFTC. Despite this, a significant amount of regulatory activity is also occurring on a state by state basis. Some are focusing more on supporting Blockchain innovation, while some may seem to be focusing more on restricting it.
Given today’s news via Coindesk on the subject, it would seem that Alabama falls into the second group. According to their article today on Alabama and Crypto fraud, this one particular state has issued around 20% of all of the existing cease and desist orders related to halting Crypto scams.
More specifically though, the professed fact that this amounts to only nine orders seems to show the true weight that the US government is throwing behind such efforts at this time. With this, it could be said that the supposed US regulatory crackdown is not as severe as it is sometimes painted by the media as being.
Still, arguably, to truly regulate the Blockchain industry, all governments will largely have to throw out the old ways for the new. The Howey Test and similar frameworks continue to work for traditional assets. The same cannot be said with certainty for something like the Blockchain, which is revolutionary in how it has to offer.
In the end, there is a chance for Blockchain innovation to be encouraged and not stifled by global governments. Any shot that we have of this happening depends centrally on educating our officials on the good of the industry, so that the scams are not the principal factor in their decision making. Furthermore, in doing so, they will hopefully see the benefit of developing new legal frameworks for an industry that is poised to disrupt just about every other space that exists.
By: BGN Editorial Staff