White House cybersecurity coordinator Rob Joyce told CNBC that the US government still has a long way to go before it begins drafting regulations on the cryptocurrency market.
While countries like China and Russia are cracking down on cryptocurrencies in various ways, the United States is taking its time drafting any form of regulation. According to White House cybersecurity coordinator Rob Joyce, the government has yet to analyze the market sufficiently to understand the risks involved in cryptocurrencies before considering appropriate oversight.
“I think we’re still absolutely studying and understanding what the good ideas and bad ideas in that space are. So, I don’t think it’s close,” he said speaking to CNBC.
It is common for governments to regulate Bitcoin at the exchange level, but it remains challenging to clamp down on the cryptocurrency because its blockchain denies authorities the tools that they need to easily identify criminal transactions.
It is also exceedingly difficult in some cases for government officials to shut down an account or confiscate the wealth of any individual in criminal cases.
“We are worried. There are benefits to the bitcoin concept — digital cash, digital currencies. But at the same time, if you look at the way bitcoin works after there is a criminal act that takes place, you can’t rewind the clock and take back that currency,” Joyce added.
It appears that the US government—at least as far as the White House is concerned—wishes to address the more criminal aspects of cryptocurrencies without any intent of a total clampdown.
Cryptocurrencies appear to be hitting US politics more than previously seeing as the White House and other administrative bodies are getting more questions on the subject.
Recently, a new Congressional candidate who advocates cryptocurrency use jumped into the fray just in time for the midterms. Brian Forde, a 37-year-old coder, received donations for his campaign from some established cryptocurrency investors, among them the Winklevoss twins.
As the phenomenon pushes deeper into the mainstream, we can expect this to be a more frequent point of discussion in all branches of the US government.
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