There is a legal uncertainty around Bitcoin in the United States as states have different opinions about the legal status of the world’s top digital asset. However, federal law declares it a commodity.
In terms of recognition, Bitcoin has gained enough reputation among traders and investors but in trustability, it still lags behind. To build trust, there should be a clear status for cryptocurrency.
The legal status for Bitcoin is different in different states of the US. For example, Hawaii announced to ban crypto-related activities in 2014, but in 2018, it removed the ban. In 2018, it reversed the decision but now, it demands a money transmitter license from people engaged in crypto operations.
Many states, including Florida, New York, Kansas, and Delaware, have set clear legislation for cryptocurrency.
California introduced a bill known as “Digital Asset Regulatory Bill” in an attempt to provide a clear status for cryptocurrency. California’s bill was successfully passed by the Senate Committee of the State. However, Bitcoin has not gained a clear status in California.
One can buy and sell cryptocurrency in Texas without getting a money transmitter license. However, it may ban crypto transactions between two unknown sources.
Like many countries in the world, some states of the US, such as New York, New Mexico, Connecticut, New Hampshire, and Florida, are holding negative sentiments for Bitcoin.
However, there are strong chances that all states of the US agree on a single point to regulate cryptocurrency. For instance, 48 states agreed to publish a single regulatory framework so that there will be an easy path between different states in cryptocurrency’s usage.
Mining is Legal
But it is clear that mining of Bitcoin is legal in the United States in comparison to many countries where mining is illegal. But there are no clear regulations on the usage of cryptocurrency in gambling such as online casino sites.
At the federal level, there are two institutions that are responsible for crypto regulation. The US Securities and Exchange Commission (SEC) is a law enforcement agency that regulates securities while the Commodity Futures Trading Commission (CTFC) deals with derivatives markets.