U.S. blockchain developer’s broker license threatens employment and diversity

If U.S. legislators do not amend the Infrastructure Act HR 3684, they will soon undermine the huge opportunities of blockchain technology to create jobs and a diversified workforce, which will Require blockchain developers to obtain broker status On American soil.

HR 3684 does not identify the taxonomy of asset classes. Not all encrypted assets meet the definition of security—many are transaction tokens, used as an indispensable consensus mechanism for distributed ledger technology. Requiring every blockchain developer to have a broker status indicates that US legislators have not yet understood the complex and diverse set of use cases for blockchain technology or cryptocurrency.

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“Blockchain enables us to build a new decentralized economic system, which will fundamentally change the way people save and use their assets and money,” Futurist and blockchain social influence leader Jane Thompson Share with me. “However, nothing is essentially financial.” The functions and characteristics of blockchain and digital assets should determine their classification. This is an unaware and short-sighted bill that will continue to exclude excluded groups from the economic system that is already immersed in privileges. “

Blockchain is democratizing finance and new forms of digital enterprise. Its low barriers to entry enable people from different backgrounds around the world to participate in this evolving decentralized digital economy.

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These pioneers are not common participants in the banking industry and Wall Street. Nonetheless, they have become respected developers, fintech entrepreneurs, innovators and consultants due to the opportunities presented by the emerging blockchain industry. We have never seen so many people from all walks of life participate in investing, trading and using digital assets.

The cost of elementary and continuing education—plus the licensing and business costs that a broker’s license may bring—is almost unaffordable for most Americans, especially in groups with lower socioeconomic status.

The learning curve of trading does not help, especially since developers are not necessarily traders. It’s like asking a doctor to be a lawyer, just to practise legally. As we all know, the US broker test, especially Series 7, is extremely difficult, and it may take months or years of study to pass.

HR 3684 contradicts the existing parameters of fintech and traditional finance. When blockchain developers do not have to manage customer assets, why are they considered brokers? Quant developers and even standard developers working for online payment platforms such as Paypal do not need to be licensed by a broker in the United States.

Regulation is essential to protect consumers and the economy, but this unwise attempt to establish a legal framework around cryptocurrencies will only send industry leaders of various backgrounds, companies, and jobs overseas when the U.S. needs to create jobs most. .

This U.S. Senate has approved HR 3684, Although there are no amendments, Proposed by six senators Earlier this week, it was aimed at clarifying the encryption language in the bill. It will be moved to the House of Representatives before being submitted to President Biden for final signature.

The views, thoughts, and opinions expressed here are only those of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.