The past few years have been quite prolific for the crypto industry. Even though the value of the most popular cryptocurrencies, like Bitcoin, fluctuates from time to time, the changes aren't dramatic enough to prevent people from using this payment method to conduct business and to play crypto poker online.
And while it seems that the popularity of online crypto casinos is on the rise, the US government shared some concerns about this specific payment method. While the anonymity and the reduced amount of bureaucracy are what attract the attention of the masses, officials believe that this transaction option should be better monitored. What does that mean for the future of blockchain poker? Let's take a look at the latest developments.
US Crypto Regulations
Regulations of cryptocurrencies in the US are currently a complicated matter, as several federal institutions can deal with digital assets, depending on whether you define them as money transmitters, security, or commodities/derivatives. Furthermore, each state can implement its own set of regulations, which is why politicians are trying to develop a centralized regulatory framework to make things easier for everyone.
In the meantime, the Financial Crimes Enforcement Network (FinCEN), The Securities and Exchange Commission (SEC), and The Commodity Futures Trading Commission (CFTC) are all involved in the regulation process in one way or another.
In recent weeks, multiple US crypto companies spoke out against the SEC, claiming that they are adopting an anti-crypto view that might cause irreparable damage. Right now, it seems as if the SEC believes that most tokens in the market qualify as securities, which means that stricter registration and disclosure requirements are necessary.
In March of this year, SEC Chair Gary Gensler said that if crypto platforms aren't regulated as stock exchanges, they can't be used as qualified custodians by investment advisors. If cryptocurrencies might end up being considered as security, that might change the way the market operates. Some companies decided to take their protest to the next level, even raising the possibility of leaving the US market in favor of the European one if push comes to shove.
Whether it really happens or not remains a mystery, but this explosive situation can lead to great losses in terms of revenue as well as technological progress. If casinos won't be able to legally accept Litecoin or BitcoinCash to allow players to participate in crypto gambling, online venues might lose some potential clients. Without the appeal of using the Lightning Bitcoin Network, players might give up on online betting altogether.
However, luckily, nothing is set in stone, and there is still time to rectify the situation. All hope is not lost, and if regulators are open to conducting a healthy debate about the matter, possible changes can be made to current regulations to allow both crypto companies and the government to profit from the situation.
Is Online Poker Facing a Drastic Change?
At this point in time, the US crypto market is stable enough to provide local gamblers with the option to place online bets quickly and efficiently. It is important for regulators to understand that the crypto market is the way of the future, and while there is a need to ensure crypto transactions remain as safe as possible, over-regulating the market can hinder local technological advancement and take the country a step backward.