- On 8 December, crypto market executives before the Congress.
- They aimed to improve lawmakers’ and regulators’ understanding of this new asset class and the related regulations.
- Cryptocurrency CEOs urged the authorities to consider tailored legislation for the space.
On 8 December, top cryptocurrency companies, including Circle FTX and Coinbase, which their Chief executives appeared before Congress. They were to respond and testify questions related to the services and products within the crypto industry.
Cryptocurrency CEOs Attest in Congress
Representative Maxine Walters chaired the House Financial Committee hearing, targeted to improve authorities’ understanding of the cryptocurrency business and how the industry fits the existing legislation. She cited issues concerning Bitcoin’s mining electricity usage, which weighs against Bitcoin benefits.
Walters said that there were many unanswered questions on how existing regulations apply and whether lawmakers have the needed power to safeguard consumers and investors while promoting innovation in the financial industry.
Bitfury CEE and former OCC acting controller Brian Brooks stated that the topic is essential for any individual concerned by American effectiveness in the capital service industry. Meanwhile, Representative Anthony Gonzalez said that Web3 would empower the global financial space and further touched on the United States’ prospect of losing out on crypto-related innovation because of burdensome regulations. Gonzalez questioned whether the sector would progress for a more unified policy by the country.
Cryptocurrency execs urged Congress to ensure further clarification on overlapping jurisdictions like CFTC (Commodity Futures Trading Commission) and SEC (Securities and Exchange Commission).
The committee members stated that while nations like Canada have approved crypto-based products like spot BTC exchange-traded funds, the US continues to ban them. Representative Bryan Steil quizzed Coinbase executive Alesia Haas details on SEC’s decision to disallow the company to launch lending product tagged to stablecoins.
Hass declared that the Securities & Exchange Commission did not clarify its decision to deny the product green light.
As Democratic members criticized the crypto sector for carbon footprint by mining activities, some praised crypto wallets’ potential to offer low-cost alternatives to the banking system.
Haas warned that the United States risks unnecessary chilling regulations and laws if the government fails to consider tailored legislative solutions openly discussed with public participation. Nevertheless, analysts think Congress will not create new cryptocurrency laws soon.