The legal system in the United States is fragmented, and therefore there is no clear answer on this issue. It will depend on where and who you are to know the legality of Bitcoin. In federal law, Bitcoin is defined as a commodity. The legal status of operations carried out with this cryptocurrency may vary … Read more
The legal system in the United States is fragmented, and therefore there is no clear answer on this issue. It will depend on where and who you are to know the legality of Bitcoin.
In federal law, Bitcoin is defined as a commodity. The legal status of operations carried out with this cryptocurrency may vary in the country’s different states.
Some people are familiar with this virtual currency, but trust is still an issue. There is too much uncertainty regarding the legal status of this popular coin around the world. There are governments where this cryptocurrency legality is fluid and irregular, even though more than a decade has passed since its invention.
As the United States is made up of a mosaic of states, it is no exception; each has its laws. There are states where Bitcoin’s commercialization is legal, but there are others where the operations are questioned.
Bitcoin and its legal status in the United States of America under federal law
At the federal level, the two organizations that care about Bitcoin are the Commodity Futures Trading Commission (CTFC), responsible for regulating the country’s derivatives markets, and the United States Securities and Exchange Commission (SEC). The latter is an agency that works independently of the federal government. Its role is to regulate the securities markets and comply with federal securities laws.
The United States Securities and Exchange Commission (SEC) has stated that this cryptocurrency is not a security. But the Commodity Futures Trading Commission (CTFC) in 2015 declared that Bitcoin is a gold-like commodity and needs to be regulated.
As the legal system is fragmented, the most commercialized cryptocurrencies in the world are uneven. Since there are so many laws, and they all vary from state to state, it isn’t easy to know US commerce’s actual status.
For example, Hawaii in 2014 prohibited all types of transactions of this digital currency, but in 2018 it relented. He decided that people who want to trade cryptocurrencies must have a Money Transmitter License.
New York, Florida, Delaware, and Kansas also adopted these regulations. But the rest of the states have not wanted to legalize cryptocurrency operations.
Is it legal to buy and sell Bitcoin in the United States?
There are many states where the purchase of this cryptocurrency is legal. In 2013, the Financial Crimes Enforcement Network (FINCEN) that belongs to the Treasury Department, declared that it is legal to invest and use Bitcoin as a payment method.
Everything will depend on whether the seller of the goods and services wants to accept this cryptocurrency. There is a state like California where cryptocurrency is not defined, and therefore, it is not regulated.