If regulation with cryptocurrencies has often been a contentious issue, and the United States has long struggled to find its feet and make up its mind on the digital chunks of gold, this time is drawing to an end. Now, lawmakers are scrambling to find a purchase in the complicated world of anonymous and instant transactions. One state at a time, apparently.
Florida behind the Wheel
On June 26, Florida Chief Financial Officer (CFO) Jimmy Patronis announced that he intends to create the position of cryptocurrency chief who will be tasked to oversee the entire industry throughout the state.
While Patronis retains a firm approach towards cryptocurrencies he is also aware of the fact that more scrutiny is needed to establish a vibrant ecosystem that may serve customers and users rather than put them at risk from hacker attacks.
Patronis, who is also State Fire Marshal and in charge of supervision of the Department of Financial Services, has the track record of a person who upholds values of integrity. In his most recent announcement, he elaborated that the new position will make sure to apply current insurance and securities laws to initial coin offerings (ICOs) and, of course, digital currencies themselves.
Moreover, the person appointed in the new position will have to work on a feasible regulatory framework to chart the course for the future, both of the state, neighbouring regions, and possibly the U.S. as a whole.
One Regulator to Bring Them All
As the announcement reads presently, the new position will be tasked with coordinating the Office of Financial Regulation (OFR) and the Office of Insurance Regulation (OIR), which will work together in thrashing out binding regulation. All companies that initiate ICOs and run cryptocurrencies in Florida will also be asked to register with the OFR.
Patronis had this to add at the time of the announcement: “We cannot allow the cryptocurrency industry to expand in Florida unfettered and unchecked with the potential for so many, including our large population of seniors, to be exploited. By taking an active, comprehensive and balanced approach, our state will provide an appropriate level of scrutiny for emerging digital asset technologies. It is absolutely essential that Florida create safeguards to protect our consumers from fraud.”
The move endeavored by Patronis is not at all that strange. Apparently, the objective here is not to stifle innovation. On the contrary, through meaningful regulation, we can finally see a state legislation that works in the best interest of both business and citizen.
Meanwhile, applauds have been echoed all throughout Florida. Senate President-Designate Bill Galvano has publically endorsed the plans arguing that the state needs to stay at the very frontier of technological advancement.
Bringing more oversight into the crypto industry is hardly intended to slow it down. It’s intended at crypto scams which often involve Florida citizens themselves, but have the potential and are spreading to other areas as well. A more centralized approach in the free-rein industry would certainly be a boon to people who want to transfer money in safety.