United States lawmakers will soon destroy a massive opportunity for job creation and a diverse workforce in blockchain technology unless they change Infrastructure Act HR 3684, which would require blockchain developers to broker status on U.S. To gain ground.
HR 3684 does not recognize the taxonomy of the asset class. Not every crypto asset falls under the definition of security – many are transactional tokens and are used as consensus mechanisms that are essential to distributed ledger technology. The requirement for broker status for every blockchain developer indicates that US lawmakers have not yet understood blockchain technology or the complex and diverse use cases of cryptocurrency.
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“Blockchain enables us to build a new decentralized economic system that will fundamentally change the way people save and use their wealth and money,” shared Jane Thompson, a futurist and blockchain social impact leader Blockchain and the functions and characteristics of a digital asset should determine its classification. This is a ill-informed and short-sighted bill and will continue to exclude excluded groups from an already privileged economic system. “
Blockchain democratizes access to finance and new forms of the digital company. The low barrier to entry has enabled people from diverse backgrounds around the world to participate in this growing decentralized digital economy.
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These pioneers are not the usual actors in banking and Wall Street. Nonetheless, they have become respected developers, fintech entrepreneurs, innovators, and consultants because of the opportunities offered by the burgeoning blockchain industry. We have never seen so many people from all walks of life engage in investing, trading, and using digital assets.
The cost of initial and continuing education – as well as the licensing and business costs that can come with broker licensing – are nearly out of reach for most Americans, especially lower socioeconomic groups.
The learning curve of trading doesn’t help, especially since developers aren’t necessarily traders. It’s like a doctor also has to be a lawyer just to legally practice a doctor. US broker exams, especially the Series 7, are known to be extremely difficult and can take months or years of learning to pass.
HR 3684 contradicts the existing parameters of fintech and traditional finance. Why should blockchain developers be treated like brokers if they don’t have to manage client assets? Quant developers or even the standard developers who work for online payment platforms like Paypal don’t need a broker license in the US.
Regulation is essential to protecting consumers and the economy, but this ill-informed attempt to create a legal framework for crypto will only send industry leaders from all backgrounds, companies and jobs overseas when America is in need of job creation most.
The U.S. Senate approved HR 3684 despite the lack of an amendment proposed by six senators earlier this week that aim to clarify the crypto language in the bill. It will be moved to the House of Representatives before it reaches President Biden for final signature.
The views, thoughts, and opinions expressed herein are those of the author alone and do not necessarily reflect the views and opinions of Cointelegraph.
Erin Grover is the head of blockchain social impact strategy at Jacobi Asset Management, specializing in crypto assets, crypto funds and algorithmic trading. She is a brand ambassador for Icoinic Capital and an advisor to Akasha Innovation Hub, a blockchain accelerator founded by Ethereum co-founder Mihai Alisie. Her previous work has included content strategies for the United Nations, USAID and similar NGOs in Afghanistan, East Timor, Cambodia and more.