As the U.S. Securities and Exchange Commission (SEC) ramps up its scrutiny of digital assets, the Blockchain Association is calling for “sensible” regulation that would make the country a leader in the space.
The benefits of crypto regulation in U.S.
In an interview with Cointelegraph, Blockchain Association Executive Director Kristin Smith said that regulation would bring much-needed clarity to the industry and make the U.S. a leader in the space.
She said: “Right now, other countries are ahead of the U.S. in terms of crypto regulations. Switzerland, Singapore, Japan, and others have put out very clear guidance on how they expect digital assets to be treated under their laws. The U.S. has been slower to do so, which has created an uncertain environment that has made it harder for companies to innovate and operate here.”
Smith added that regulation would also level the playing field for small businesses and investors who are currently at a disadvantage.
“There are a lot of small businesses and individual investors in this space who don’t have the same resources and connections as the big players, and so they’re at a real disadvantage when it comes to understanding and complying with the patchwork of regulations that exist at the state and federal level,” she said.
“Regulation would bring much-needed clarity to the industry and make the U.S. a leader in the space.”
Smith concluded by saying that while there is still some work to be done in terms of crafting comprehensive crypto regulations, she is optimistic about the future of cryptocurrencies in the U.S.
“I think we’re moving in the right direction,” she said. “I think we’ll see more progress on the regulatory front this year, and that will lay the groundwork for even more progress in 2020 and beyond.”
As for what those regulations might look like, Smith said it’s still too early to say for sure. But she expects that they will be similar to the existing rules and regulations that govern other financial assets.
“I think we’ll see a lot of familiar faces in terms of who will be responsible for regulating cryptocurrencies,” she said. “The SEC will likely have a role to play, as will the Commodity Futures Trading Commission (CFTC).”
How can blockchain impact the space industry of the USA?
The United States space industry is at a pivotal moment. The country is facing increased competition from China and other nations in the race to control the high ground of space. At the same time, the U.S. military is increasingly reliant on space-based assets for everything from navigation to communication to missile defense.
In this environment, it’s more important than ever for the United States to maintain its leadership position in space. And one way it can do that is by leveraging blockchain technology.
What is blockchain? It’s best known as the underlying technology behind cryptocurrencies like Bitcoin. But blockchain is much more than that. It’s a distributed database that allows for secure, transparent and tamper-proof transactions. And that makes it ideal for a host of applications in the aerospace and defense industries.
For example, blockchain could be used to track the movement of space debris, which is an increasingly pressing problem as more and more objects are left orbiting the earth. By creating a digital ledger of where debris is located, we can avoid collisions that could damage satellites or even injure astronauts.
Blockchain can also be used to protect against cyberattacks. Because it’s distributed, blockchain is extremely difficult to hack. And that makes it an attractive option for securing sensitive data like blueprints or mission-critical software.
Finally, blockchain can help streamline procurement processes by creating a secure and transparent record of transactions. This would not only make it easier to track spending, but could also help reduce corruption and fraud.
Conclusion
Blockchain has the potential to revolutionize the aerospace industry. By making data more secure and transparent, blockchain could help improve safety, streamline procurement, and reduce fraud and corruption. But as with any new technology, there are also some risks to consider. Before implementing blockchain, aerospace companies will need to carefully assess those risks and decide if the benefits are worth the investment.
