Saturday, November 27 2021

If US lawmakers do not amend Infrastructure Act HR 3684, they will soon undermine the huge opportunities of blockchain technology to create jobs and a diverse workforce, which Require blockchain developers to obtain broker status On American soil.

HR 3684 does not identify the taxonomy of asset classes. Not all crypto assets meet the definition of security – many are transaction tokens, used as a necessary consensus mechanism for distributed ledger technology. Requiring every blockchain developer to have brokerage status indicates that U.S. lawmakers have yet to understand the complex and diverse set of use cases for blockchain technology or cryptocurrency.

Related: Cryptocurrency mining based on proposed US policy changes

“Blockchain allows us to build a new decentralized economic system, which will fundamentally change the way people save and use their assets and money,” Jane Thompson, leader of futuristic social influence and blockchain, shares with me. “However, nothing is primarily financial.” The functions and characteristics of blockchain and digital assets should determine their classification. This is an unconscious and short-sighted bill that will continue to exclude excluded groups from the economic system that is already steeped in privilege. “

Blockchain democratizes finance and new forms of digital business. Its low barriers to entry allow people from different backgrounds around the world to participate in this evolving decentralized digital economy.

Related: Women, decentralization and the driving forces of the global economy: expert responses

These pioneers are not common participants in banking and on Wall Street. Nonetheless, they have become respected developers, fintech entrepreneurs, innovators and consultants due to the opportunities presented by the emerging blockchain industry. We have never seen so many people from all walks of life participate in investing, trading and using digital assets.

The cost of basic and continuing education, as well as the licensing and business costs that a broker’s license can entail, is almost unaffordable for most Americans, especially in lower socioeconomic groups.

The learning curve of trading doesn’t help, especially since developers aren’t necessarily traders. It’s like asking a doctor to be a lawyer, just to practice legally. As we all know, the US Broker Test, especially the Series 7, is extremely difficult and may require months or years of study to pass.

HR 3684 contradicts the existing parameters of fintech and traditional finance. When blockchain developers don’t have to manage client assets, why are they considered brokers? Quant developers and even standard developers working for online payment platforms such as Paypal do not need to be licensed by a broker in the United States.

Regulation is essential to protect consumers and the economy, but this reckless attempt to establish a legal framework around cryptocurrencies will only send industry leaders from diverse backgrounds, businesses and jobs overseas when the United States needs to create jobs the most. .

This The US Senate approved HR 3684, Although there are no amendments, Moved by six senators Earlier this week, he aimed to clarify the encryption language in the bill. It will be transferred to the House of Representatives before being submitted to President Biden for final signature.

The views, thoughts and opinions expressed herein are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Irene Grover He is the head of Jacobi Asset Management’s blockchain social impact strategy, specializing in crypto assets, crypto funds and algorithmic transactions. She is the ambassador of the Icoinic Capital brand and advisor to the Akasha Innovation Hub blockchain accelerator created by Ethereum co-founder Mihai Alisie. His previous work includes developing content strategies for the United Nations, the United States Agency for International Development and similar NGOs in Afghanistan, East Timor and Cambodia.


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