During the later part of 2019, the US government was deep into a debate on whether there should be a ban on cryptocurrencies or not. When Bitcoin started making significant strides in the US markets, critics of digital currency thought that cryptocurrency wouldn’t make it for very long. They were convinced that Bitcoin will be banned in the American market and that the US Dollar will maintain its status as the standard unit of global financial transactions.
But despite the efforts of some politicians to outlaw cryptocurrency purchases, the government still found it hard to implement a ban on digital currency. When the facts were laid out for the public to see, they were only informed about the actual value of cryptocurrency.
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Bitcoin has captured the attention of various government agencies and administrative bodies; the Securities and Exchange Commission (SEC), the Federal Trade Commission (FTC), the Financial Crimes Enforcement Network (FinCEN), and the Internal Revenue Service (IRS), to name a few. With the last one announcing its Virtual Currency Compliance campaign last July, the government’s engagement with cryptocurrency has been quite active as of late.
As State and Federal governments are still trying to make sense of this global financial innovation, and amidst the tax laws being implemented on digital currencies, the number of policies seeking to control cryptocurrencies is still relatively few. In fact, some politicians and Federal agencies are even impressed with blockchain technology.
They believe that as one of the most powerful domains in the financial world, the US should take up leadership in developing blockchain technology. It was then supported by other policymakers that warn crypto-critics about the dangers of having too many regulations. They’re worried that if the US placed too many restrictions on crypto-investments, the policies would end up driving investors away in the long run.
How the States React To Cryptocurrency
Such was the case for the state of New York. When they passed laws that were considered by investors to be too restricted, many cryptocurrency-based companies left the New York market. The same could happen in at least ten other states like New Mexico and California, where the governments are all too cautious about crypto-investments. However, the latter state keeps the cryptocurrency market in California afloat. Thanks to the work of California cryptocurrency lawyers.
The effective efforts of cryptocurrency lawyers in California can be compared to the results achieved by the cryptocurrency lawyers in Colorado, where a bill to move all government records into the blockchain was passed.
Meanwhile, in Arizona, the government is now accepting tax payments in Bitcoin. Georgia is also looking to follow Arizona’s lead. Out of all US states, Wyoming is considered to be the most crypto-friendly. The state recently exempted cryptocurrencies from property tax, a legislative decision enjoyed by cryptocurrency-based companies in Wyoming.
Whichever state you’re in, you could easily protect your cryptocurrency assets when you have the right legal team by your side. Make the most out of every offering, and get the best legal counsel on issues regarding cryptocurrency with Red Road Legal. Get in touch with us today, and we’ll talk about your opportunities and solutions in the cryptocurrency space.