Legislation in the Bitcoin industry is becoming more and more complete. Is this a good thing or a bad thing?

Since the introduction of New York's BitLicense, a large number of Bitcoin companies have been driven away. Now, the United States is about to introduce a national Bitcoin bill.

New Bitcoin Law

This week, the U.S. House of Representatives submitted HR 835 (full text download) to Congress. The resolution, co-sponsored by Adam Kinzinger and Tony Cardenas, mentions cryptocurrencies such as Bitcoin and blockchain technology.

The resolution begins as follows:

In the current market situation, there are more and more emerging payment options, including some non-fiat currencies, which bring higher security and transparency to the systems established by traditional financial institutions and may even replace old payment technologies.在适当保护下的区块链技术has the potential to completely change the trust mechanism and escort online transactions. Its application areas include financial services, payment, medical care, energy, asset management and intellectual property management.

Jerry Brito, executive director of Coin Center, believes that this resolution is the government's affirmation of cryptocurrency and blockchain technology. He suggested that the government should introduce relevant laws as soon as possible to promote the innovation of blockchain technology.

The Development of Cryptocurrency Regulation in the United States

Since New York introduced the BitLicense, the definition and regulation of cryptocurrencies in various states has continued to evolve.

At the request of Governor John A. Kitzhaber, the Oregon government has introduced a law to regulate bitcoin exchanges and money transmitter services.

Last year, California passed AB-1326, which was criticized by the Electronic Frontier Foundation (EFF), a representative opponent, for severely hindering technological innovation and privacy rights. In addition, AB-1326 also requires applicants to pay a registration fee of up to $5,000. This bill has been dead in name only since its inception.

Recently, North Carolina Governor Pat McCrory agreed to and signed a new Money Transmitters Act, which defines virtual currencies as "tradable assets."

Brito believes that the bill does not define cryptocurrency broadly enough and criticizes North Carolina's law from multiple angles. However, the Chamber of Digital Commerce highly praised the bill, saying it laid the foundation for comprehensive cryptocurrency legislation.

Other states are moving in the same direction with regard to cryptocurrency regulation. The Digital Commerce Association said it is working with states to advance the definition and regulation of cryptocurrency.

Bitcoin service providers become scapegoats

As the legislation of cryptocurrency by state governments becomes clearer, more and more cryptocurrency service providers are criticized by netizens. The most recent one is the Coinbase incident, where a Coinbase user revealed that he used Bitcoin on a gambling website and his account was blocked.

In response to this incident, an article on Reddit said that people should not blame the service providers, but rather the state government and the so-called "advocacy groups" such as the Digital Trade Association and Coin Center. They are the real enemies of Bitcoin. Bitcoin service providers have no choice but to comply with state laws, otherwise they will face the risk of bankruptcy.

Bitcoin service providers freeze your funds, block your account, or track your transaction records, not because they have nothing better to do, nor because they have a mental disorder and want to control your transactions. In most cases, they do this because of the supervision of the local government, and they have to abide by the laws made by the government. When you get angry again because your account is blocked, remember that the regulatory authorities are the instigators. At the same time, please remember the ugly faces of those advocacy groups, who are constantly demanding the improvement of legislation in the name of the community. These people are our enemies, and the service providers are just their scapegoats.

Some Bitcoin enthusiasts are keen to improve Bitcoin legislation because they think that only in this way can the cryptocurrency develop better and reduce the crime rate. Others hope that the government can stay away from Bitcoin because most government officials are suspected of corruption, tax increases, and resistance to innovation. Therefore, they believe that advocacy groups that cooperate with the government are their real enemies.

There will only be more legislation and regulation in the field of cryptocurrency and blockchain. The US government should refer to the regulatory models of other countries and avoid imposing mandatory management in a condescending manner, which will only hinder the development of innovative industries.

Bitcoin is booming in many countries. For example, Switzerland has just announced that the government has decided to reduce regulation in order to promote the development of the cryptocurrency industry. In addition, in other countries that have not yet set regulatory standards, the Bitcoin industry is booming. Therefore, the United States, as a world leader in technological innovation, must understand that excessive regulation will only cause it to lose a large number of high-tech companies.