Broker licenses for U.S. blockchain developers threaten jobs and diversity

U.S. lawmakers will soon destroy a huge job creation opportunity and diverse workforce in blockchain technology if they do not amend Infr...



U.S. lawmakers will soon destroy a huge job creation opportunity and diverse workforce in blockchain technology if they do not amend Infrastructure Bill HR 3684, which require blockchain developers to obtain broker status on American soil.

HR 3684 does not recognize the taxonomy of the asset class. Not all crypto assets fall under the definition of security – many are transactional tokens and used as consensus mechanisms essential to distributed ledger technology. Requiring broker status for every blockchain developer indicates that U.S. lawmakers have yet to understand blockchain technology or the complex and diverse set of cryptocurrency use cases.

Related: Cryptocurrency Mining Under Proposed US Policy Changes

“Blockchain allows us to build a new decentralized economic system, which will fundamentally change the way people save and use their assets and money,” Jane Thompson, leader of Futuristic Social Impact and Blockchain, shared with me. “However, there is nothing inherently financial about blockchain and the functions and characteristics of a digital asset should determine its classification. This is an ill-informed and short-sighted bill that will continue to exclude groups excluded from an economic system already steeped in privilege. “

Blockchain democratizes access to finance and new forms of digital business. Its low barrier to entry has enabled people from different backgrounds around the world to participate in this growing decentralized digital economy.

Related: Women, decentralization and global economic dynamism: the experts’ response

These pioneers are not the usual players in banking and Wall Street. Yet, they have become respected developers, fintech entrepreneurs, innovators and advisers due to the opportunity presented by the burgeoning blockchain industry. Never have we seen so many people from all walks of life participate in investing, trading and using digital assets.

The costs of initial and continuing education – as well as the licensing and business fees that can accompany a broker’s license – are almost unattainable for most Americans, especially among lower socioeconomic groups.

The learning curve of trading doesn’t help, especially since developers aren’t necessarily traders. It’s like requiring a doctor to be a lawyer as well, just to legally practice as a doctor. The US Broker Exams, especially the Series 7, are known to be extremely difficult and may require months or years of study to pass.

HR 3684 is at odds with the existing parameters of fintech and traditional finance. Why would blockchain developers be treated like brokers when they don’t have to manage client assets? Quant developers or even standard developers working for online payment platforms like Paypal are not required to have a broker license in the United States.

Regulation is key to protecting consumers and the economy, but this ill-informed attempt to create a legal framework around crypto will only send industry leaders from all walks of life, companies and jobs overseas to a when America is most in need of job creation.

the The US Senate approved HR 3684, despite the absence of amendment, proposed by six senators earlier this week, which aimed to clarify the crypto language of the bill. It will pass through the House of Representatives before reaching President Biden for final approval.

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

Erin grover is the head of the blockchain social impact strategy for Jacobi Asset Management, with a specialty in crypto assets, crypto funds and algorithmic trading. She is an ambassador for the Icoinic Capital brand and an advisor to the Akasha Innovation Hub, a blockchain accelerator created by Ethereum co-founder Mihai Alisie. His previous work includes content strategy for the United Nations, USAID and similar NGOs in Afghanistan, East Timor, Cambodia and more.