The US government says it wants to protect crypto consumers
New York City: A Trojan horse is a term used to describe a situation in which an ostensibly friendly entity appears to be beneficial, but in fact has hidden negative effects. For example, a Trojan horse can be used as a means of infiltrating an organization—in this case, the US government. The US government’s proposed crypto regulation (aka “crypto ban”) may seem like a good idea at first glance. But if you dig deeper into the details of the proposed regulation and its potential effects on your business, you might just find it turns out to be a Trojan horse that will do more harm than good.
The US government says it wants to protect consumers who use cryptocurrencies by regulating them and banning their use by financial institutions and other businesses. However, many people are concerned that this will have negative effects on innovation and progress within the industry. They argue that without these regulations, there would be less protection for investors who purchase cryptocurrencies with their money rather than using it themselves as part of an investment portfolio.
These concerns have led many investors to avoid investing in cryptocurrencies altogether until they see how things play out over time—and it seems like they’ll have to wait longer than they hoped.
The U.S. Congress is currently working on a new regulation for cryptocurrency, and it’s likely that this new legislation will be passed and signed into law. However, there are several things to keep in mind when considering this bill and what it might mean for cryptocurrency users in the future.
The first thing to consider is that the proposed bill is not a true “cryptocurrency” regulation, but rather an attempt to regulate all digital currencies as if they were fiat currencies like the dollar or euro. This means that it would require companies that accept cryptocurrency payments to comply with federal anti-money laundering (AML) guidelines and report suspicious activity to law enforcement agencies within 24 hours of receiving such information from customers or other sources.
This type of legislation may seem innocuous enough on surface level — after all, if you’re buying something with Bitcoin and paying someone with Bitcoin, you would want your transaction to be reported by your bank so that they could flag any suspicious activity as soon as possible (this way they can prevent fraud). However, many people believe that this type of reporting requirement goes too far by requiring companies like PayPal, Stripe, Square Cash…etc., which allow for digital transactions using cryptocurrencies as well as regular fiat currency accounts…to report.
This is the first step towards regulating cryptocurrencies in the United States—and it could have major effects on how they’re used by investors. The SEC has not yet set a date for when it might officially go into effect; however, it expects it to be announced later this year.