US government regulations would almost certainly impede cryptocurrency sales.
The Capital Building at night and a gentleman holding a laptop with the statement “Regulation of Cryptocrrency.”Photo byDonnie26 10878978 Dreamstime.com
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Governments worldwide have taken various approaches to regulate cryptocurrency, with some countries (such as China) having instituted outright bans. In contrast, others are taking a more hands-off approach.
In the US, the regulatory landscape for cryptocurrency is still evolving, and various government agencies have taken different positions on how it should be treated.
For example, the Securities & Exchange Commission (SEC) has indicated that some cryptocurrencies and initial coin offerings (ICOs) may be considered securities and, therefore, subject to federal securities laws.
Also, the IRS has issued guidance on taxing cryptocurrency transactions (most of it is as confusing as the rest of their regulations). These and other regulations could make it more difficult for companies to sell cryptocurrency and for individuals to purchase it.
What Is BTC?
Almost everyone, whether involved in cryptocurrency or not, knows what BTC is. But just to be sure, here’s an expert definition.
Bitcoin is a decentralized digital currency that you can buy, sell and exchange directly, without an intermediary like a bank. Bitcoin’s creator, Satoshi Nakamoto, originally described the need for ‘an electronic payment system based on cryptographic proof instead of trust.’
Every Bitcoin transaction that’s ever been made exists on a public ledger accessible to everyone, making transactions hard to reverse and difficult to fake. That’s by design: Core to their decentralized nature, Bitcoins aren’t backed by the government or any issuing institution, and there’s nothing to guarantee their value besides the proof baked in the heart of the…
