Fri, Aug 10, 2018

Trump’s Crypto Task Force Accelerating Blockchain Regulation

In an interview with Jason Bisnoff of Compliance Reporter, Cyber Risk Managing Director Stacy Scott outlined how President Trump's new task force on consumer fraud is a sign that overdue regulatory action in the digital currency space is coming closer to reality. An excerpt of the article is below with a link to the full article (available to subscribers):

By Jason Bisnoff:

The executive order calls on the attorney general to establish the task force in order to give guidance into the investigation and prosecution of fraud cases, with particular attention paid to digital currency fraud.

“A lot of major companies aren’t using this technology already, but are thinking about blockchain and how it could benefit them from a security perspective,” Scott said. “If regulation comes down, people will pay attention as they build their [compliance] program around digital currencies.”

Cryptocurrencies have already attracted the attention of regulators, with the Securities and Exchange Commission, Commodity Futures Trading Commission and North American Securities Administrators Association all coming out with guidance for investors. Scott said that for this reason, she expects the task force to largely lean on the expertise of the regulatory agencies that have been looking into this space the longest, including the SEC, CFTC and even the Federal Bureau of Investigation.

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