I think the newly minted cryptocurrency millionaires would be wise to spend some of their money on lobbying congress for better regulation. Current FINCEN regulations are being used to stifle the growth of the cryptocurrency ecosystem, and the powers that be (IRS, SEC, CFTC, Treasury, State Department, plus state-level regulators) will likely exercise their power even more in the future.
For example, "In 2014, FinCEN ruled that bitcoin exchanges and payment processors are money transmitters under U.S. law. Bitcoin exchanges involve matching buyers and sellers, while processors facilitate purchases between consumers and merchants. This ruling is worrying to some, as there may be few limits to the scope of the MSB (specifically money transmitter) definition."
The current Congress is probably the most open to financial regulatory reform than any Congress in a long time; when the pendulum swings back to the Democrats, it will be much more difficult, if not impossible, to make changes in favor of more liberty.
FINCEN regulations make most people's eyes glaze over--it's not something most people care about, and won't likely rouse a lot of opposition from the public at large. It is therefore something that lobbyists could make headway against.
If cryptocurrency enthusiasts don't write the regulations themselves, their enemies will write them for them.
EDIT:
Here's what I think the lobbyists should push for:
* Treat cryptocurrencies as currencies for tax purposes. Trading one cryptocurrency for another should not trigger capital gains taxes.
* Eliminate money transmitter licensing regulations.
* Failing that, require mandatory reciprocity--if you get a money transmitter license in one state, then every state must recognize your license. (Similar to how driver's licenses and marriage licenses work now.)
* Pass legislation that protects financial privacy. Mandate sunset provisions on all current regulations. Repeal the Bank Secrecy Act of 1970. Repeal the Money Laundering Control Act of 1986. Eliminate laws requiring the reporting of financial transactions above $10 K to the IRS. Eliminate KYC / AML laws.
* Failing that, raise the reporting limits substantially and tie them to inflation. Limit anti-money laundering regulations strictly to fiat transactions at FDIC-insured institutions. Make anti-money laundering provisions a strictly civil matter, punishable only by fines.
* Eliminate asset forfeiture laws. Require criminal conviction before allowing the government to seize assets.
https://www.coindesk.com/fincen-rules-bitcoin-payment-processors-exchanges-money-transmitters/
https://www.suretybonds.com/blog/the-quick-guide-to-money-transmitter-licenses/
For example, "In 2014, FinCEN ruled that bitcoin exchanges and payment processors are money transmitters under U.S. law. Bitcoin exchanges involve matching buyers and sellers, while processors facilitate purchases between consumers and merchants. This ruling is worrying to some, as there may be few limits to the scope of the MSB (specifically money transmitter) definition."
The current Congress is probably the most open to financial regulatory reform than any Congress in a long time; when the pendulum swings back to the Democrats, it will be much more difficult, if not impossible, to make changes in favor of more liberty.
FINCEN regulations make most people's eyes glaze over--it's not something most people care about, and won't likely rouse a lot of opposition from the public at large. It is therefore something that lobbyists could make headway against.
If cryptocurrency enthusiasts don't write the regulations themselves, their enemies will write them for them.
EDIT:
Here's what I think the lobbyists should push for:
* Treat cryptocurrencies as currencies for tax purposes. Trading one cryptocurrency for another should not trigger capital gains taxes.
* Eliminate money transmitter licensing regulations.
* Failing that, require mandatory reciprocity--if you get a money transmitter license in one state, then every state must recognize your license. (Similar to how driver's licenses and marriage licenses work now.)
* Pass legislation that protects financial privacy. Mandate sunset provisions on all current regulations. Repeal the Bank Secrecy Act of 1970. Repeal the Money Laundering Control Act of 1986. Eliminate laws requiring the reporting of financial transactions above $10 K to the IRS. Eliminate KYC / AML laws.
* Failing that, raise the reporting limits substantially and tie them to inflation. Limit anti-money laundering regulations strictly to fiat transactions at FDIC-insured institutions. Make anti-money laundering provisions a strictly civil matter, punishable only by fines.
* Eliminate asset forfeiture laws. Require criminal conviction before allowing the government to seize assets.
https://www.coindesk.com/fincen-rules-bitcoin-payment-processors-exchanges-money-transmitters/
https://www.suretybonds.com/blog/the-quick-guide-to-money-transmitter-licenses/