Tennessee to Accept Bitcoin as a Legal Form of Payment

Jim Powell, the representative of a Democratic party, introduced a bill that will officially recognize cryptocurrency as a legal form of payment for the state of Tennessee
07 February 2018   216

The bill will officially recognize cryptocurrency and smart contracts for electronic transactions. It will also protect ownership rights of information secured by the same methods.

Despite the fluctuations of cryptocurrency prices and the risk of speculations, Jim Powell believes in the blockchain technology. After the presentation on blockchain technology held on January 24 he said that the state of Tennessee supports this technology and wants to be a leader in this innovation.

According to Powell, business exchanges using the cryptocurrency are not illegal in Tennessee, but his measure would establish a law ensuring it stays that way.

It may seem unnecessary for a lawmaker to propose to recognize cryptocurrency as a legal form of payment in a single state. Each state also has its own financial regulations and laws, and approaches cryptocurrency differently. State and Federal law in the US often conflict over controversial issues and Powell is looking at future conflicts between state and federal rulings on the use and legality of cryptocurrency.   

SEC Suspends Trading in 3 Companies

On Friday The U.S. Securities and Exchange Commission temporarily suspended the trading of three companies as they made the purchase of cryptocurrency and blockchain-related assets
17 February 2018   126

According to the announcement, the trade of  Cherubim Investments, Inc., PDX Partners, Inc., and Victura Construction Group, Inc. will be suspended between 9:30 a.m. EST Friday and March 2. The notice was dated Feb. 15.

SEC stated that its trading suspension orders state that recent press releases issued by CHIT, PDXP, and VICT claimed that the companies acquired AAA-rated assets from a subsidiary of a private equity investor in cryptocurrency and blockchain technology, among other things.

The release also indicates additional reasons for the suspensions. The agency’s orders also say there are questions regarding the nature of the company's business operations. In case of CHIT, the Commission suspended trading in the securities because of its delinquency in filing annual and quarterly reports.

In August 2017, the SEC  issued a warning for investors about the companies that may publicly announce ICO or coin-related events to affect the price of the company’s common stock.

Fraudsters often try to use the lure of new and emerging technologies to convince potential victims to invest their money in scams. 

U.S. Securities and Exchange Commission