The US just like many other countries is struggling with regulatory issues when it comes to blockchain. The blockchain technology has brought so much revolution to many industries but there are still many legal issues attached to it.
From the 2019 trends, however, the future is promising as far as the US is concerned. Crypto-related crimes were much lower as compared to the previous years.
According to a report by Murphy & McGonigle that was done on January 22nd, blockchain is likely to have a better 2020 than the previous years. The report cited Blockchain Litigation Year in Review analyzes the five legal trends in the US in 2020. The report analyzes all legal issues concerning cryptocurrencies, blockchain-based projects, crypto exchanges, and ICOs.
Some of the notable trends from the report include:
New York to be specific to the Southern District. According to the report, the state especially the metro areas has the highest number of litigation cases. That shows that there is a high rate of blockchain innovation in New York.
The SEC continues to deal with all kinds of profiles to ensure compliance with the law. According to the report, 2019 had 43% more enforcement actions as compared to the previous years. The main actions were in regards to ICOs and token offerings violating the law. Some of the big profiles that were involved in enforcement actions include Telegram, Kik, and Block.one.
As much as there is a growing number of ICOs in the US, new regulatory enforcement actions have reduced. That makes it even easier for the crypto ecosystem.
The American court ruling will set a standard that has to be followed by the Industry. That means that fraud cases will be scrutinized more to determine how they are violating the set standards. The new law will be an advantage to new firms as it will give them more clarity.
As much as the SEC is doing the best in its ability to ensure compliance, there are still many industry players that find the process complicated or not feasible. That means that the SEC needs to be clearer and make the process much simpler.
Since blockchain is evolving by the day, there is room for change and the litigation rules are set to change or be improved with time.
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