Moreover, in terms of the regulatory action against the cryptocurrency space, the United States tends to stand out the most, especially the Securities and Exchanges Commission [SEC]. The commission has been in the spotlight in the space for both positive and negative reasons. However, the main reasons it has gained the attention of the entire space is because of its stance on the Bitcoin ETF and ICOs.
Notably, the SEC is not the only regulatory body which has managed to gain the attention of the space. The regulatory stance on cryptocurrencies in New York and Wyoming State have also made prominent mark. While Wyoming State is known to have a crypto-friendly ecosystem, New York is known being hostile towards the space.
The regulatory stance of New York on cryptocurrencies is to believed to be the worse, with major platforms such as Kraken and ShapeShift closing down their operations in the city. Moreover, business involved in virtual currencies are required to procure license which is sanctioned by the New York State Financial Services [NYFS] to operate in the city, popularly known as BitLicense.
Caitlin Long, a well-known Bitcoin proponent and a wall-street veteran, spoke about whether there was any way the city stance could be similar to the current stance of Wyoming on cryptocurrencies, in an interview with Naomi Brockwell. She said:
” I don’t think New York’s gonna go back on the Bitlicense and in fact actually historically New York has has had this attitude towards financial regulation. They have a strategy of being the most regulated state and New York has thought that that has paid off and in the regulated financial industry that may be true.”
She went on to say:
“but I’m an insurance person by background, what’s interesting is you know what you know how the insurance industry dealt with it insurance is a state regulated industry insurance companies have one entity that has 49 states and another separate entity under an umbrella parent company that’s New York. so they basically New York has extraterritorial jurisdiction”
Long added that there are other ways and that people get creative when it comes to dealing with oppressive regulation. She further stated that there are several startups especially in Brooklyn that have continued their operations in the city because of the talent.