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Louisiana’s House of Representatives has forwarded a bill that seeks to establish clear directives and regulatory infrastructure that will allow crypto businesses to work legally in the state.
As traditional businesses are struggling due to a major economic crunch due to the coronavirus pandemic, lawmakers are looking at other crypto alternatives. As per Tuesday’s report, the State of Louisiana is considering a bill for licensing cryptocurrency businesses.
If the bill is passed and signed into law, it would create a framework for crypto businesses to operate legally. Brought earlier this year, the bill looks at official licensure ahead. State representative Mark Weight has signed the bill and also pushed for a crypto-focused regulatory regime in the state.
Future of Licensing Cryptocurrency Businesses in Louisiana
The legislation, if made a law, would then define the crypto exchanges and other digital currency-related terms. Thus, this bill brings a crypto framework in place making it easy for businesses to operate.
Louisiana’s House of Representatives has given unanimous approval to the bill last week. It went later to the state’s Senate for a second reading. From there, it was moved to the Committee on Commerce, Consumer Protection and International Affairs on May 21.
The U.S. is yet to give legal status to cryptocurrencies. Thus, conducting a legitimate crypto business becomes risky. Besides, the country has initiated several measures in the past in the way of preventing cryptocurrency. As a result, many companies had to shift base to other friendlier locations like Switzerland, Malta, and others.
If Louisiana succeeds in forming a law for cryptocurrency businesses, it will pave the way for other states to follow suit. Besides, it will also help in establishing clear regulations for crypto sphere.
U.S. and Crypto Regulations
Earlier this year, the U.S. Treasury Secretary Steven Mnuchin said that the U.S. would soon see crypto regulations in place. The lack of regulations has created a barrier for innovation in the U.S. crypto market. Besides, with stricter laws of the SEC, major tech giant like Telegram has to dissolve its TON project entirely.
This attitude of the regulators has forced several exchanges and businesses to shift base elsewhere. Earlier this month, Morgan Creek Digital Co-Founder Jason Williams said that his firm is in touch with several regulators. In a podcast interview, Williams said:
“We are actively working with the SEC, FINCEN and we have had our share of conversations with the regulators and I think we’ll see them coming in the future.”
U.S. Congressional Candidate David Gokhshtein has said that the U.S. might fall behind if it doesn’t ease up regulations on crypto companies. He added:
“You can’t regulate a new space based on 1993 laws. We [the US] have got to ease up. By the time we realize we are behind, it is going to be too late cause the other countries are going to be more successful in the crypto-blockchain space than we will be.”