During the New Jersey Legislature's Assembly Financial Institutions and Insurance Committee last week, the panel discussed the multi-signature wallet technology, the nature of transaction verification and coin creation, and the general state of bitcoin regulation in the US today.
Coin Center director Jerry Brito offered his organization’s assistance to the panel in the future, and called for clarity on how either new laws or existing statutes will apply to businesses in the space, saying:
“This technology, again – we don’t know where it’s going. But there are many positive uses, and we want to make sure those can meet their potential.”
Brito fielded a number of technical questions from legislators, and notably defended the industry during discussions of Mt Gox by saying that developers and stakeholders are working to prevent a similar collapse – and the ensuing fallout – from taking place again.
Santori suggested that legislators could create financial incentives, including tax breaks and business grants, to entice developers and investors to New Jersey. He cautioned against using a framework like the BitLicense, urging lawmakers to create a flexible environment that welcomes digital currency businesses instead of turning them away.
“Digital currency entrepreneurs are building this economy, and I ask that you give them good reason to build it here in New Jersey,” he said.
Legislators asked the panel about the risks for consumers and businesses when using bitcoin and how regulation has developed in the United States thus far.
ItBit CEO Charles Cascarilla told the committee that businesses that use digital currency should be judged on a case-by-case basis owing to fact that, with bitcoin, there are both financial and non-financial uses of the technology.
“It comes down to: how are you using bitcoin?” Cascarilla explained. “If you’re moving a practically worthless amount of bitcoin, you probably shouldn’t have any real regulation.”
TeraExchange co-founder and president Leonard Nuara, joined by CEO Christian Martin, told the committee that their New Jersey-based company has long operated under the jurisdiction of US regulators. They suggested that federally-regulated exchanges that handle bitcoin can offer tools to help people hedge against price volatility, a topic discussed numerous times during the hearing.
One legislator asked about the maximum coin supply and how the price and bitcoin-denominated financial instruments might be impacted when all of the coins are in circulation.
“In the first instance, it’ll be the year 2140 – so I may not have to worry about that,” Nuara joked, drawing laughter.
For the full story: http://www.coindesk.com/bitcoin-panel-regulation-redo-new-jersey/