The recently published 2018 U.S Economic Report for the President has an entire chapter dedicated to cryptos like Etherium and Bitcoin. The chapter also talks about blockchain technologies and the future of cryptocurrency regulation.
New markets and innovations among things presenting unique challenges to America’s legislative and regulatory institutions
Each year, the United States Congress publishes a report discussing various economic subjects like opioid abuse, the stock market, employment rates, and technology, among other issues affecting the economy. The 2018 Economic Report dedicates a whole chapter to cryptocurrencies like bitcoin and etherium, ICOs (Initial Coin Offerings), and the blockchain technology. Chapter 9 is titled “Building a Secure Future, One Blockchain at a Time.” The report notes that in 2017, cryptos got into a mainstream awareness level.
“Blockchain technology-providing many potential benefits like providing cybersecurity-entered the mainstream in 2017, being driven by surging market valuations in cryptocurrencies and widespread interest,” reads part of the 2018 economic report. “These new markets and innovations presented America’s legislative and regulatory institutions with various unique challenges and also technology that may revolutionize the world’s economy and the digital landscape.”
The study compared cryptos to the internet
The study leading to the report is usually meant to utilize analysis and draw conclusions to assist Congress and individual government committees. Chapter 9 refers to 2017 as “the year of cryptos,” and the blockchain technology’s phenomenal rise is said to be a significant economic event which stands out to the researchers that wrote the report. The study also points out that traditional stocks did well in 2017, but they didn’t compare to digital assets.
“While stock market measures showed strong growth in 2017, the digital asset markets dwarfed their performance,” the study explains. “The current buzz surrounding cryptocurrencies resembles the excitement experienced in the 1990s over internet when people started recognizing that technology firms could bring changes to the world. Many internet firms launched and their market valuations took-off in short order, many failed, but some succeeded substantially and challenged the traditional ways of conducting business.”
Regulations must control crypto “increasing pains and misuses”
As expected, the report also details how control is required for these new but potentially valuable technologies. The report further notes the possibility of scams within the growing ICO market but also recognizes that the crowd-funding solution performed very well in 2017. Also, the report points out the fact that there has never been substantial evidence of any individual hacking into a blockchain’s underlying protocol. However, it notes that cryptocurrencies are still significantly vulnerable to theft.
The economic report explains that U.S officials from various departments and agencies have to combine efforts in order to combat the growing crypto “pains and misuses.” Entrepreneurs, policymakers, various agencies, and regulators should keep working together to make sure that developers can quickly deploy the new blockchain technologies and in such a way that they protect Americans from theft, abuse, and fraud while still ensuring full compliance with the relevant regulations,” the economic report for 2018 concludes.
Currently, there is no clear law regulating cryptocurrency activities in the U.S, but financial regulators have previously made attempts to introduce regulations.
