A brief analysis of the current state and outlook for U.S. cryptocurrency regulation

This statement is taken from Lawyer Sun Ming Yu Zhibao's annual meeting speech on “Current Status and Approval of Financial Regulations in Foreign Countries”. This phrase is often part of the American dialect.

Existing administrations in the United States and functions of several temples

Generally speaking, when it comes to American governance, the lack of integration, legal and administrative body has led to administration and compliance with high price rules. Doctors are required to notify multiple departments or apply for a license while doing business, and failure to do so may result in penalties.

Ministry of Finance and IRS (Ministry of Finance and Internal Revenue Service)Rules relating to the collection of taxes on cryptocurrencies will be developed and implemented.

Securities and Exchange Commission (SEC)Management tokens are also strictly regulated and are generally not considered secure. Whether it is a domestic or overseas project, as long as an American purchases the tokens for the project, the SEC is under the jurisdiction of the SEC. As a result, many US companies are creating their own tokens based on managed tokens, which are now the only ones that can be used.

U.S. Commission on Commodity Futures (CFTC)Although it is a regulatory partner in the cryptocurrency industry, its oversight is limited to commodities (only in the cryptocurrency market (commodity contracts)), and the SEC has more rules and regulations than the CFTC.

OCC (Occupational Office of the General Superintendent of Currency)Similar to the financial management company, the ruling covers a wide range of fixed income coins. Both USDT and USDC have bank deposits as assets for stablecoins and have no connection with banks. The main laws and regulations are not yet in place, and in the future, the OCC may publish more detailed information on how banks provide services to securities companies. When applicable regulations remain open, Bank of America may provide services to investors on fixed exchange rates. It will ensure the supply of stable coins while maintaining the prosperity of the crypto industry.

CFPC (Consumer Financial Protection Agency)Parties that provide financial assistance to consumers (only fixed funds and Defi) are responsible for protecting consumers' rights.

FinCEN (Financial Crime Agency)It is a payments-oriented governing body, which mainly oversees money laundering and financial fraud. The US stock exchange and the company were required to sign an MSB license so that FindCEN could easily create an information channel. Exchanges and employees are required to collect clients' personal information, identify potential clients, and prevent clients from engaging in financial transactions and financial assaults. Going forward, FinCEN will oversee the Defi area. Because it is not clear who is responsible for Defi's operations, FinCEN is more difficult to monitor and can guarantee for certain situations.

Expectations for future improvements in US policy

stability piece: Stable returns have a positive impact on the entire cryptocurrency market and are also a critical issue for government agencies. There is skepticism about the financial stability of the United States, which the government can target. In a traditional financial system, users must complete the KYC before receiving financial services, but financial security violates the laws of the US financial system and uses the KYC included in the coin security process (unless the developer uses it for a redemption). You can all get stable financial support without interruption, and of course the same offense. The strategy of the United States is to continue to take advantage of credit to the world through fixed income securities.

As the US government recognizes that strong coins lead to financial disruption and financial corruption, on the one hand, KYC will only escalate in the future including anonymous users. On the other hand, how are banks involved in trading fixed income assets like Circle? Stable issuers, like Circle, are required to hold a percentage of the assets, such as government bonds or bank deposits. Of course, for now, the results of stabilizing the US dollar are not that good.

to count: Currently, the U.S. government tax measures for the cryptocurrency market linked to Defi are not clear enough. In the future, regulators will focus on introducing the application of special tax rules. Other definition is the tax-free money that Yellen refers to, which applies to the same names of commodities and the same cryptocurrencies. If the law is enforced, it will have a negative impact on capital investment.

Issue of securities:Whether a cryptocurrency project is a security issue is a multi-faceted one. In fact, many U.S. police officers have had trouble using traditional security measures to monitor the issuance of cryptocurrencies. It can cause coin advertising to fail in some important industry positions, and if you apply for security registration as a security officer, it will affect the success of the job.

SEC member Hester Peirce once called for a security bill. Its main purpose is to provide cryptocurrency services for the trading period (eg 3 years). Once the project has sufficiently completed the decision, the coin issuance will not have to meet the required security release, which is very efficient. This means creating a new group of assets outside the framework of security policy. This is just the idea of ​​the SEC, but in practice it is effective and consistent with industry events. It may take a long time to land in the future to see if it can be used as a law. Second, it understands lawmakers who can better understand the nature of this business to support law enforcement. From a current perspective, there has been no real success at the federal level since the enactment of the Safe Harbor Act. The new chairman of the Chinese Security Administration, Gary, has no particular interest in the law and has replaced him, exploring various promulgated media.

Infrastructure Act: The infrastructure policy is one of the most important bills led by Biden, as the broker is very close to the cryptocurrency market. This can include minors' parties or apps like Ethereum or Bitcoin. This means that you will have more advertising responsibilities, especially for taxpayers. When a party to a challenge project is identified as a broker, the user information exchanged must be reported to the government. However, this bill does not meet Ethereum mining requirements as the evidence is unknown and there is no way to release it to specific parties. Considering the rough details of the broker, detailed descriptions of the managers are also needed.

Dao: The DAO itself is a new type of organization, which is not in the field of supervision but in the field of the legislative body. The general legislature requires that lawmakers pass a bill and then be approved by Congress. Because DAOs are outside of traditional organizational processes (such as joint ventures), there are no clear rules for collecting and paying taxes. Because the law is so broad, we expect that there will be no law in this area for the next three years. Additionally, current lawmakers have no knowledge of DAO, so it will take some time to understand the bill.