Currently, cryptocurrency regulation is something of a patchwork of regulatory oversight, as it is a duty shared by the SEC, CFTC (Commodity Futures Trading Commission), Treasury Department, the Federal Reserve and individual states, according to Pymnts. The result of the “everyone is responsible for Bitcoin” structure of current regulation means that, in practice, no one is responsible for Bitcoin — and speculative trading and investing has flourished in the legally grey environment.
The question going forward is how regulation should proceed in terms of how Bitcoin and like digital currencies are classified — as securities or as commodities. That question is further complicated by the emergence of ICOs, or initial coin offerings, that have become a favored fundraising tool of startups.
At the beginning of February, CFTC and SEC regulators discussed the cryptocurrencies impact on users and the ecosystem created around Bitcoin. Moreover, France and Germany expressed their interest to see cryptocurrencies on the agenda for the upcoming G20 meeting of the largest advanced and developing economies. Nevertheless, the purpose of these meetings and decisions regarding cryptocurrencies is not to squash innovation, but to have rules that protect consumers.
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