Typically when you hear the words “cryptocurrency” and “regulation” in the same sentence, it includes a sad tale about some dinosaur politicians enacting laws that will restrict consumer access to Bitcoin and other altcoins.
Instead – for the first time in the United States – we might have something that will go ahead and stop those dinosaurs from touching cryptocurrencies in the first place.
A recent bill signed in the state of Colorado called the Digital Token Act will essentially restrict regulators from enacting many of the draconian laws the federal government and many other foreign nations have to restrict the access and trading of cryptocurrencies.
According to CCN, “The new legislation also exempts crypto broker-dealers and salespeople from state licensing requirements under limited circumstances.” This is a brave move for the government of Colorado to place limits on their reach compared to states like New York which has been on a campaign for years trying to kill their booming crypto-industry.
The article continues saying that “The pro-bitcoin law is part of a move to elevate Colorado into a tech hub for decentralized ‘Web 3.0’ platforms by making it easier for entrepreneurs to launch blockchain and crypto-centric businesses. Lawmakers hope this will bolder Colorado’s economy by creating new jobs and luring venture capitalists, developers, and investors to the state.”
The bill is far from perfect, limiting actions to “consumption” and placing limitations on “speculative or investment” purposes, but in an environment where regulators place limitations on consumers, this bill largely regulates the regulators themselves.
Bitcoin and other cryptos are illegal to trade with and mine for in many countries, since the blockchain based technology undermines the rule of authoritarian regimes and enables private transactions to be made between people. For the last several years especially, regulators in the United States have been trying with little success to stamp out the wild west of crypto and bring it under their control.
Libertarians believe that sound money is a natural right to all free men and women and that the market is the ultimate determiner of what consumers decide to trade as value for value.
Whether its physical gold coins or a Bitcoin wallet on your phone, consumers have the right to opt out of government-backed fiat currency powered by private, central bankers if they so choose.