President of the United States of America (US), Donald J. Trump announced Petro cryptocurrency ban throughout the country, and the move is expected to affect the cryptocurrency sphere as a whole.
Contrary to the common belief of United States not paying heed to blockchain technologies and cryptocurrencies, an astounding bill amongst some twenty (20) pending bills in the U.S Senate is on its way to being passed on Monday, 16th September.
Why the Petro cryptocurrency ban?
This senate bill, labeled 1025, is fixated to ban Venezuela’s Petro cryptocurrency in the US. The bill overtly mentions the consultation from Commodity Futures Trading Commission (CFTC), which regulates future and option markets as well as the Securities & Exchange Commission (SEC) in order to understand the procedure via which Petro by-passes sanctions imposed by the United States.
This understanding led to the cryptocurrencies becoming a hot topic, particularly for the governing bodies as well as for the Treasury Secretary and State Secretary.
This bill has also managed to attract various sponsors (nineteen and counting) including Ted Cruz and Mario Rubio from Texas and Florida, respectively.
This is no ordinary action as opposed to the tone it is being discussed in for it could prove to be the foundation stone for banning multiple cryptocurrencies from the state.
Jason Brett, chief executive officer (CEO) of the law firm “Value Foundation Technology,” explains that this ban on Petro may act as the groundwork for various other cryptocurrencies to be banned.
How may Petro cryptocurrency ban affect cryptosphere?
The bill says that Petro is a borderless cryptocurrency and that once backed by the state, will not regard the boundaries of the state, hence the Petro cryptocurrency ban. Though this reason sounds valid enough to outlaw Petro, it could also be used to ban all the other cryptocurrencies such as Bitcoin or any other Altcoin.
Cryptocurrencies and blockchain projects are not bound by nationalism and borders. A stateless society with a decentralized economy would be ideal for cryptocurrencies and is probably what the millennials currently aim at. Nonetheless, this bill once passed, will bring the entire cryptocurrency on a ledge with a steep fall.