The United States Is Shooting Itself In The Foot With BlockchainsteemCreated with Sketch.

in blockchain •  2 months ago 

For the last couple years, companies have complained that a lack of regulatory clarity is causing the United States to lose any advantage it had in the blockchain race. It is to the point now, where the country is on path to fall completely out of the contest.

There still is no regulatory clarity leaving the SEC to basically do as it sees fit. Of course, this is often contested in the courts yet that does not seem to help. In fact, there is a standard being established that is going to make it hard for United States' companies to compete.


Source

The latest example is the case with Telegram. One of the more popular messenger applications, the company decided to establish the Telegram Open Network (TON) which will facility the token (gram). The deal was structured using forward contracts of delivery ones the network was established.

Naturally, the SEC screamed this was a security and sued. The district court in New York sided with the SEC. If this is not overturned, it is an enormous setback for public blockchains.

We need to make no mistake here. The government is not going to give up control willingly. It is going to fight this at every turn. The only way for there to be any reversal is for public pressure to mount on politicians to the point where they cannot ignore it anymore.

Of course, this is unlikely to happen until it is too late and the bulk of newer projects are taking place outside the United States.

For a while now, I espoused the idea that we will see success when fiat is removed from the equation. By this I mean that one is not partaking in a new project with fiat but using presently owned cryptocurrency. This is why it is so important for everyone to keep their bags growing.

The other piece of this equation is for transactions to take place off one's website. Instead, these offerings should take place on decentralized exchanges where no government can shut it down.

Finally, the ideal structure is to set up a DAO where there is no single point of vulnerability. Existing companies are on the radar of outfits such as the SEC. We need to work on developing structures that are impenetrable by them.

In the meantime, companies are looking outside the United States to develop. Along the same lines, China is fully committed to blockchain, resulting in many new projects coming from that country.

Therefore, the best thing we can do is keep expanding our infrastructure while the establishment is asleep at the wheel. With its present stance, there will come a day when the United States wakes up and realize the ship already sailed.

The question will be the ship it missed be centralized or decentralized.

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Too much gun violence!

It looks like the states like shooting itself in the foot with a lot of things lately, even with the corona virus!