What Happens If U.s. Bans Bitcoin

Cryptocurrency is more than popular than e’er before, and it’southward worrying a lot of people in Washington. Since the very beginning of the crypto trend, lawmakers in Washington D.C accept tried to come up with new and unique means of decision-making or regulating cryptocurrencies, and some have even gone so far equally to ask for a
ban
on cryptocurrency in general. In this article, I’ll be taking a expect at how exactly cryptocurrency is regulated in the United States, what the hereafter of this regulation might be, and what the likelihood of crypto getting
banned
in the US might be. So, without any further ado, let’s dive in!

As of 2022, cryptocurrency is completely legal in the United States. Anyone is allowed to purchase cryptocurrency, sell it, use information technology every bit a medium of commutation, or reject it. Only, that does
not
mean that cryptocurrency is completely
unregulated. In fact, there are currently many regulations in identify for cryptocurrency, and it’s important for
anyone
who’s looking to invest in cryptocurrency to know what those regulations are. Crypto is generally regulated through laws that
already
exist, as opposed to laws created specifically for cryptocurrency.

But before I talk about those, let’s take a look at how lawmakers
desire
to regulate crypto in the future. There take been a lot of plans relating to creating
specific
legislation for cryptocurrency. This could potentially take away a lot of the freedoms that crypto users are generally used to. In 2022, Joe Biden signed an executive order that was supposed to specifically regulate
cryptocurrency
in the U.s.a. for the first time.



image

So far, this executive club would help protect some crypto investors from scams and frauds by creating an actual framework for how “projects” can exist made. In short, any crypto projection that was created for rug pull or scam purposes, including pump and dump cryptos, could be fabricated illegal in the US. This is groovy news for a lot of people, but it as well
worries
some other people. This could potentially be the start of a banning game for certain cryptos, and some cryptos might even exist used in scams the creators never intended.

The executive social club likewise asked the Financial Stability Oversight Council to find any gaps in the regulation of cryptocurrency. This means all the piddling loopholes that crypto users take advantage of to avoid regulations and taxes might somewhen exist found as well. In short, at that place’s no getting rid of the regime.

Simply the most concerning part of the executive order is the “International Cooperation and U.South. Competitiveness” part. On 1 hand, it’southward aimed to increase exchangeability among cryptocurrencies, but on the other hand, it wants to create a framework to clamp down on cryptocurrencies being used in crimes. In theory, that sounds fine, but the government may exist forced to have extreme measures to do and so, and this worries many crypto investors.

Regulation isn’t necessarily bad for crypto. In fact, information technology might actually exist
good
for crypto. You lot see, no thing how many laws whatsoever land makes, information technology’s impossible to actually
command
a cryptocurrency. This is because cryptocurrencies are decentralized. By nature, at that place is no
1
person or organization that tin simply take over and start making decisions. Cryptocurrencies volition
ever
be decentralized, but the way people
apply
cryptocurrency is going to be regulated. Why is that
proficient
for cryptocurrency? Well, it
legitimizes
cryptocurrency. With these then-called “regulations” in place, the authorities is officially recognizing cryptocurrency as a fact of life. It’s something that’due south here to stay, and information technology opens the door for it to become more acceptable than ever before.

Just now, let’due south take a look at some of the ways the U.S
currently
regulates crypto with
existing
laws.

There are many dissimilar government organizations that regulate crypto in the US. The SEC, the CFTC, the IRS, and FinCEN. Crypto isn’t the legal tender of the US, as you probably already know, but information technology tin legally exist used to purchase other products, it just can’t be
enforced
upon vendors. The IRS considers cryptocurrency to be a legal “store of value”, which means that crypto-assets
can
be taxed under US police. That’s right, y’all really take to declare all of your crypto assets in your tax returns, and failure to practice so might even result in legal trouble that you lot practise
non
want to get into.

Ane of the ways the US regulates cryptocurrencies is through exchanges. Crypto exchanges similar FTX, Coinbase, and Binance are all legal in the The states, and they all follow guidelines imposed by the Bank Secrecy Act.

Merely to some people, this regulation isn’t enough.
Those
people desire to put an
end
to cryptocurrency, and they’re even in the United States Congress. A bill called America COMPETES Deed has been tabled in congress past congresswoman Maxine Waters. According to the congresswoman, this bill is aimed at countering the financial influence of and then-called bad religion actors like China and Russia. The bill is around iii,000 pages long, and in betwixt those long pages, there are certain things that have crypto investors
terrified.



image

Information technology would basically requite the U.S treasury secretary the power to strike down transactions on
any
crypto exchange out there. It would also exist able to stop other exchanges and financial institutions from dealing in cryptocurrency. The aim here is clear, information technology wants to control — if not put a complete end to — cryptocurrency. The bill doesn’t mention information technology’due south going to
outright
ban cryptocurrency, but considering the aim is to “counter” Russia or People’s republic of china, and considering information technology’south so easy for international crypto transactions to bypass sanctions, crypto would likely be a
prime
target for a ban. Overall, this beak would ban
any
kind of transaction that is deemed as detrimental to “national involvement”.

What’southward dangerous about this bill is that it has been concealed equally a fashion to protect the U.S from foreign powers, when in reality, it just wants to command the mode people spend their coin. In response to the neb, The Blockchain Clan sent out a statement saying, “Without this due process, many in the crypto industry fright that information technology could provide a pathway for a misguided crackdown on the apply of cryptocurrencies,”.

Thankfully, the crypto earth didn’t really remain silent on the upshot. Before long afterward the bill was tabled, an amendment was made that removed some or all of the Treasure Secretary’s overreaching powers on crypto exchanges and assets. The bill concluded upward being passed past the House of Representatives and later past the Senate. It’s officially a office of U.Due south police force now, and even though it initially could’ve
ended
cryptocurrency in the U.S, it ended upward not being that big of an issue for the most role. In fact, it concluded up being
expert
for crypto, since information technology set the tone that the general public volition
not
take something like an outright
ban
of cryptocurrency lightly. The public pressure proved to be too high, and what’southward scary is that a nib like this would’ve been incredibly easy to pass just 5 years ago.

Simply withal, at that place are many other people in
powerful
positions that want to put an end to crypto. Whether it’s due to geopolitics, or only a misunderstanding of how crypto works. At this bespeak, yous’re probably wondering, what would happen if crypto was
banned
in the United States after all? What if some
other
congressman came upward with a pecker to ban crypto and it was really
passed?

Well, for starters, cryptocurrencies are decentralized. Even if the US bans crypto, the cryptos that accept already been created would
go on
to exist. The existent problem starts when it comes to crypto
exchanges. Every bit I already mentioned before, crypto exchanges
are
regulated in the U.S, and they do everything under U.South law. If the U.S decides to
ban
crypto exchanges, they would simply cease working inside the United States.

On top of that, all of the crypto y’all might’ve bought and
held
in a crypto exchange such as Binance or FTX would also exist
frozen. The effects of this would fifty-fifty exist felt worldwide, every bit many of these exchanges are also
based
in the US. Only at the same fourth dimension, cryptocurrency itself would continue to function. There’due south admittedly no way to completely
end
a cryptocurrency, it’s only too decentralized in nature.

Americans would still be able to observe ways to buy and sell cryptocurrencies — at the risk of going to jail, though. To make matters worse, the
cost
of almost every major cryptocurrency on earth would very probable
crash
in price, since the earth’south largest
market
for crypto would be banning crypto outright. In fact, even when the America COMPETES Neb was tabled, pretty much every crypto across the board saw a slight driblet in price. If something like this would really be
passed, it would exist an utter
disaster.

Thankfully for pretty much
anybody, the Us is not banning crypto
yet. However, it’s important to understand that information technology came
dangerously
shut to doing so in 2022. The gamble of banning or soft-banning cryptocurrency is
always
there since many clauses can exist “hidden” inside of bills. In this case, pretty much the entire crypto community on the internet was able to
immediately
place the problems with the nib, and thus exert pressure, and it’due south of import that this
always
remains the instance.

Do you lot think lawmakers will make information technology harder for people to employ crypto in the future? Let me know in the comments beneath! Subscribe to my YouTube channel for more information like this https://bit.ly/3720zFW

L O A D I Due north G
. . . comments &

more!

Source: https://hackernoon.com/is-the-us-going-to-ban-cryptocurrency

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