Did Congress Just Do Something Smart?

Amanda Heckman|November 20, 2021

Is there such a thing as “smart” regulation?

You know Manward is skeptical… and you likely are too.

Our own libertarian icon Joel Salatin is revered for his incisive takedowns of dumb regulations that hurt small businesses and stunt innovation. His book Everything I Want to Do Is Illegal is a modern classic that details the pain and damage of burdensome rules and half-cocked laws.

Indeed, the tales of dumb regulations can make you laugh, cry and pound your fist with frustration.

Americans spend 11.5 billion person-hours every year on paperwork. We spend more time on government forms than on grocery shopping or even walking.

That’s not healthy.

Or take a look at our supply chain issues. We can’t unload ships fast enough to ease the strain. That’s thanks to dumb regulations over how high containers can be stacked at ports.

And this comment from the Business Roundtable – a group of top CEOs from across the country – sums up the problem with regulations quite well…

Inefficient and complex federal permitting processes continue to delay meaningful projects and investments that will stimulate job creation and economic growth. Overlapping agency jurisdiction is creating uncertainty and increasing costs on businesses, communities and consumers. Outdated and unnecessary regulations continue to inhibit innovation and decrease U.S. economic competitiveness, making America a less attractive place to create the next generation of groundbreaking products and services.

But here’s the thing…

Regulation isn’t always dumb. And sometimes it’s even welcome.

The ability to tell the difference between good and bad regulation can lead to some great opportunities.

Like right now. Regulations are coming to crypto, and we’re all for it.

Regulate the Future

As Andy’s been writing for months now, smart regulation is the key to crypto’s future.

It’s the only way mainstream adoption is possible.

As he’s said…

[Regulation] will end a lot of the uncertainty around what is clearly becoming a major asset class… Much of the speculation surrounding crypto will be washed away, and it will finally be clear that Washington expects crypto to be around for the long term.

And right now, there are forces in motion to make sure crypto regulation makes sense – and is even, dare we say it, smart.

You may recall the fight that broke out over President Biden’s infrastructure bill in late summer.

One of the provisions in the bill set up tax-reporting requirements that make no distinction between brokers and nonbrokers (individuals, developers, miners, etc.). The bill requires that any American who receives more than $10,000 in Bitcoin or other cryptocurrency report the sender’s personal information to the IRS.

This was a huge – and unfair – sticking point that delayed the passage of the bill.

But get this…

The ink is barely dry on the new legislation, and already there’s a new bill proposed to scale back the crypto regulations in the package.

Fixing a Dumb Mistake

The Keep Innovation in America Act seeks to repeal the reporting requirements of the infrastructure bill and clarify the meaning of “broker.”

We are encouraged that action is already being taken to fix a dumb and unfair rule… and that it’s being led by a bipartisan group of lawmakers.

Their reasoning is clear. In the words of one of the act’s co-sponsors, Rep. Tim Ryan, a Democrat from Ohio…

We have to figure out how to balance consumer protections and reasonable oversight while simultaneously providing these technologies and companies with the space they need to grow, innovate and democratize the financial sector.

Amen.

Too much oversight and too many unfair or dumb rules will kill innovation in our country. Especially in an asset class that is revolutionizing nearly every aspect of our economy.

And with a growing number of crypto-friendly – and bipartisan – legislators paving the way, crypto’s rocket ride is in no danger of slowing down.

As we keep saying, there’s huge opportunity here. If you’re not paying attention, you could be missing out on the next wave of crypto fortunes as this market becomes a bigger and bigger part of our economy.

Click here to get the details on three cryptos that one expert believes could end up being more valuable than Bitcoin as this next generation of the crypto market takes off.