Press Releases

STATEMENT RELEASE: The James Mad⁠i⁠son Ins⁠t⁠⁠i⁠⁠t⁠u⁠t⁠e Releases New Backgrounder Exam⁠i⁠n⁠i⁠ng Cryp⁠t⁠ocurrency

By: Logan Padgett / 2020

August 10, 2020
CONTACT: Logan Elizabeth Padgett

The James Madison Institute Releases New Backgrounder Examining Cryptocurrency

Over the last decade, cryptocurrencies such as Bitcoin have provided viable alternatives to traditional third-party financial institutions. Florida, which has already embraced the “fintech” revolution by creating a regulatory sandbox, has a great opportunity to also become a leader in the advancement of this developing monetary technology.

However, money transmission regulations designed to oversee legacy institutions that hold customer funds fit awkwardly on cryptocurrency activities. Many cryptocurrency businesses do not hold customer funds at all, yet outdated regulatory language means companies don’t know when they will run afoul of the law. Legislators should clarify these unnecessary regulatory uncertainties to better fit our state’s current technological needs.

A new report from JMI Tech and Innovation Director Andrea O’Sullivan titled “Bitcoin Beach: Reforms to Attract Cryptocurrency Innovation and Investment in the Sunshine State” explores what cryptocurrency is, how it can benefit Florida, and how legislators can update money transmission regulations to encourage blockchain innovation in the Sunshine State.

“Florida has both the ingredients for a booming cryptocurrency industry and the appetite for fintech innovation. Legislators can build on their impressive policy victories and encourage more cryptocurrency growth by making simple updates to our money transmission regulations.” –Andrea O’Sullivan, Director of the Center for Technology and Innovation, The James Madison Institute

“With economic turmoil impacting the entire country, Florida has a unique opportunity to advance an agenda that magnetizes innovation in the Sunshine State. We have laid a foundation and all the elements of success are there. It’s our hope that policymakers of all political persuasions will rally around continued reforms to make Florida a hub for growth and opportunity in the years ahead.” –Sal Nuzzo, Vice President of Policy, The James Madison Institute

To read the report, “Bitcoin Beach: Reforms to Attract Cryptocurrency Innovation and Investment in the Sunshine State,” click here.

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The James Madison Institute is a 501(c)3 organization dedicated to the advancement of free markets and liberty. The Institute conducts research on such issues as criminal justice, health care, taxes, and regulatory environments.