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shea256 / proposed-bitlicense-regulations

The Proposed BitLicense Regulations for The State of New York (Thanks to Patrick Murck for the idea + support to convert this to markdown)
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Section 200.8b Licensee is required to retain profits in US-denominated assets #13

Closed munister closed 9 years ago

munister commented 9 years ago

Context:

(b) Each Licensee shall be permitted to invest its retained earnings and profits in only the following high- quality, investment-grade permissible investments with maturities of up to one year and denominated in United States dollars

  1. certificates of deposit issued by financial institutions that are regulated by a United States federal or state regulatory agency;
  2. money market funds;
  3. state or municipal bonds;
  4. United States government securities; or
  5. United States government agency securities.

Why is it that whenever a Licensee profits, it must use its Bitcoins to buy US-denominated assets? If all miners, tipbot creators, cryptocoin creators, and mining pool operators are required to get license, than isn't it unfair for them to use the profits only on US-denominated assets?

markdavidlamb commented 9 years ago

I'm fairly sure this clause is illegal. I removed it here.

chrisrico commented 9 years ago

The craziest part is that a business based in the EU that has a customer in New York would be breaking the law by holding Euros.

markdavidlamb commented 9 years ago

@chrisrico yes, that's a big problem. I cannot imagine them legally defending that requirement. It clearly should be removed.

pmlaw commented 9 years ago

Agreed, checking out pull request #6 now.