US crypto regulation could be restricting blockchain development

Author: Olly Jackson | Published: 9 May 2018

A decision from the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) that ethereum – the second most valuable cryptocurrency – is a security, not a commodity could potentially have wide ranging effects on exchanges and investors. It could also further bolster regulation in a sector that had remained relatively untouched until recently.

The blockchain ethereum is the most popular choice for investors because of the ease with which it is can produce smart contracts, code capable of monitoring, and executing and enforcing agreements. While the technology is almost universally lauded as having a potentially revolutionary impact over a whole raft of sectors, fiercer regulation could restrict its development and see businesses and customers lose out on the benefits it can provide.

The blockchain ledger can process transactions more quickly, securely and efficiently than standard databases used currently. For example, using blockchain, a contract could be shared with multiple parties...


 

 

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