The big backers of the Silicon Valley’s encrypted currency and industry in general are pushing the government to limit the federal oversight of the sector, which they believe will slow the growth of this booming economy.
The funds Andreessen Horowitz and Union Square Ventures met with officials of the Securities and Exchange Commission (SEC) on March 28, arguing that Washington’s surveillance could slow innovation based on blockchain technology that underpins encrypted currency, such as the bitcoin, according to sources close to the record. The SEC has launched an attack on cryptocurrency trading, claiming that virtual chips issued by startups are investments that should be regulated as securities, which would subject companies to extensive federal oversight.
The industry faces a myriad of regulators – from the SEC to the Commodity Futures Trading Commission (CFTC), to the banking regulators who control payment systems and enforce money laundering laws. She also clashed with Washington on the issue of taxing gains on bitcoin trading.
While the government is raising the pressure, the industry has put in place.