Applicable to the state of the currency law? US regulatory model at the same time usher in attention and criticism


nnnRecently, with the development of encrypted currency and block chain technology, the regulators have also put more attention in this area. So far, a number of states in the United States have developed a number of regulatory systems in this area, and the Uniform State Law Commission (ULC) has also been working on the drafting of national harmonization laws in this field in 2014. At the same time, the bill also ushered in optimism and criticism of these two very different attitudes. Given the rapid development of encrypted money, some laws will soon become obsolete, so for regulatory purposes, the most important thing is to seek a balance, which is the regulators and financial technology innovators to find the middle ground.n
nnTranslation: Clovern
nThe two-year work to unify the entire US monetary business rules is nearing its end – technology enthusiasts now only need to persuade legislators to enact this charter.n
nThe Uniform State Law Commission (ULC) was established in 1982 and is a nonprofit organization of 350 members. All members are trade lawyers, and the goal is to draft legislation to clarify the uncertainties raised in state legislation.n
nIt is not surprising that ULC is interested in this area in view of the numerous regulatory regimes that have been made to date for encrypted money. Since the work of the Working Group began in 2014, the states have also tried to regulate the technology, and have sparked controversy, from public resistance to strong criticism, petitions, and ongoing litigation.n
nWith the ULC work is now nearing completion, some industry observers are very optimistic about the current situation, and that this trend is likely to appear much needed inversion.n
nWomble Carlyle lawyer Stephen Middlebrook served as advisor to the American Bar Association to ULC during the ULC drafting bill. He expects several states to introduce the Harmonization of the Virtual Currency Business Law in the upcoming National Legislative Council.n
nMiddlebrook said to CoinDesk:n
nn”I understand that legislators in several states who are interested in legislation in this area are waiting for the introduction of a unified bill, so I think the bill has accumulated a certain degree of demand.”n
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nCalled for clear legislationn
nOther people involved in this work also agree with this.n
nSarah Jane Hughes, a journalist for the ULC committee, said Texas and California were also involved in the drafting of the unification bill, so the two states could adopt the bill earlier.n
nShe said:n
nn”We think there are several states that have not taken measures to start regulation and legislation in order to wait for the introduction of a unified bill.”n
nnThe Uniform Act is intended to specify which activities related to virtual currency should be (or should not) be considered a transfer of funds and thus require a license. The bill further defines the basic concepts of encrypted assets “custody”.n
nAnother innovative project to be incorporated into the law is the three-tier licensing structure: the complete obligation to exempt individuals and small entities from obtaining licenses, create regulatory sandboxes for start-ups, and grant full licenses to large virtual currency firms.n
nAnd legislators seem to be keen to continue to participate in, and cooperate with the emerging industry.n
nCalifornia State Councilor Matt Dababneh has also raised the idea of ‚Äč‚Äčlegislation on virtual money in the past, and he told CoinDesk that he was studying the unification bill and explained:n
nn”I have been monitoring the development and progress of the virtual currency and its impact on the economy, and I am still reviewing all the recommendations made in the Uniform Bill, and as the virtual currency grows more and more for the whole state I would like to continue to study this issue. “n
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nIndustry threatn
nDespite the optimism about the bill, its future use is still facing a bitter struggle.n
nAccording to Carol Van Cleef, a finance and technology lawyer at BakerHostetler, it is a daunting challenge to get any state to adopt the law (not to mention all 50 states). And history has repeatedly proved this point.n
nVan Cleef said that 17 years ago, issued a unified funds transfer agency regulations, and that the funds transfer agencies only need to obtain a state granted license, can be the same as the passport to use the license in other states to carry out business.n
nShe said at a meeting in Washington last month:n
nn”Today, I think about 10 states have adopted this regulation, so I do not think we should think of this bill as a panacea and do not think that the bill will solve the problem of state currency transfer agencies. “n
nnAnother factor that makes things more complicated is that part of the virtual currency community is still firmly opposed to the unification bill, because the bill is very similar to the New York State “BitLicense” regulations, and they think it will make financial and technological innovation Who are far from the state.n
nThe Bitcoin Foundation is a nonprofit organization that has weakened the industry’s influence, and the organization has urged the National Council of State legislators (NCLS), which represents national legislators and staff members, to lead its members to reject the bill.n
nLlew Claasen, executive director of the foundation, wrote in a letter to NCLS:n
nn”The adoption of a model law with the laws of the State of New York will certainly threaten the survival of the national financial technology industry.”n
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nLooking for balancen
nThese ideas may also be of some value.n
nGiven the rapid development of encrypted money and related technologies, laws such as BitLicense will soon become obsolete.n
nSince the drafting of the law in 2014, the technology has emerged in two different trends: bank-focused private block chains and initial digital tokens, but both are not addressed at the state level.n
nNonetheless, Middlebrook also advocates a balance because regulators and innovators are looking for an intermediate zone, but this may only be able to be found over time.n
nHe concluded:n
nn”The real option is whether to regulate the regulations and regulatory systems designed for other things that are not related to virtual currency, or to design regulatory regulations for businesses that conduct business in this area.”n

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