IBM urges the US lawmakers more action towards Blockchain technology. This idea surfaced during a meeting of the Blockchain Committee of the US Congress with representatives of IBM. Meanwhile, the SEC takes the lack of regulation for cryptocurrencies as an opportunity to take action on its own.
The US Legislature does not look good right now as far as the handling of blockchain-based technology is concerned. The IT giant, IBM, complains about the hesitant approach of the Congress to the implementation of technological innovations in everyday administrative life. However, the situation might change now.
On September 24, some representatives of IBM met with members of the Blockchain Committee of the US Congress on September 24. According to them, the officials discussed blockchain topics like customer identification, payment processes, and global supply chains. Both IBM and the Blockchain Committee representatives agreed on the position that the blockchain brings to much to the table to become a neglected subject.
“It is imperative that government and industry work together to continue and strengthen market leadership in this new area. Also, potential political and regulatory incompatibilities that could limit the growth of the emerging blockchain economy need to be addressed “,
Previously, IBM had published a report titled “The Impact of Blockchain for Government: Insights on Identity, Payments, and Supply Chain.” In it, IBM takes up various discussions with members of the Blockchain Committee, who emphasize the need to put the blockchain on the agenda of the Congress.
The use of the blockchain applications by the US legislator, as well as the initiatives for crypto regulations, are not at high standards for the moment.
In order to have a proactive and sustainable management which would allow the crypto industry to grow the lawmakers need to take action.
For the moment, the only institutions in the US which are handling this subject are the SEC and CFTC.
The SEC Still Runs the Show
In the recent months, the SEC has taken frequent legal action on illegal financing activities through ICOs. The SEC used the given legislation for general financial market regulation. A strategy which is not always suitable for the cryptocurrency market. Lately, the SEC has classified some of the released tokens by blockchain projects as securities. While some of the tokens might mix well with the existing regulations, other tokens need new rules in order to continue their growth.
Now the SEC plans to expand regulatory efforts. The agency wants to keep an eye on brokers and investment companies for unlawful activities related to ICOs and crypto businesses.
Even if the SEC wants to bring a little order and above all confidence in the crypto market and ICOs, the current handling can only be a temporary solution. Here, too, the regulators need to find a consistent framework for cryptocurrencies as an asset class.