Cryptocurrency executives head to Parliament as Congress overturns regulations | WGN Radio 720

New York (AP) — Cryptocurrency executives went to Capitol Hill on Wednesday, understanding that fast-growing industries could be tightened, but crushing the next wave of the Internet, He said he didn’t want to send it abroad.

Leaders of major crypto exchanges, mining, and other related companies testified for four and a half hours before the House’s Financial Services Commission. .. Much of the debate focused on protecting investors in the fast-growing ecosystem, which critics call the “Wild West.”

Questions from members of Congress ranged from 101-level discourse on what “stablecoin” was to technical and esoteric ones, to digital coins fixed in the US dollar or something similar. Many questions are how Stablecoin helps the US dollar maintain its position as the world’s most important currency, and hundreds of digital assets that do not have a bank account or are around the financial system. We focused on how we can help as many Americans as possible.

How to regulate digital assets is a tricky problem, and businesses operate under state and federal oversight patchwork. There is still disagreement as to whether the Securities and Exchange Commission or other regulators should monitor a particular area of ​​the market, or whether a brand new regulator is needed.

“Currently, the crypto market does not have a comprehensive regulatory framework, and investments in digital asset spaces remain vulnerable to fraud, manipulation and abuse,” said Maxine Waters, California Democratic Party Rep. House Finance. The chair of the service committee said.

Meanwhile, many Republicans on the Commission called for light contact on regulation. For example, Congressman John Rose of Tennessee asked industry executives how Congress could prevent innovation from leaving the United States and happening abroad.

Sam Bankman-Fried, CEO of Trading Exchange FTX, said: “I think there are some explanations here that can go a very long way.”

He has a single unified regulatory framework for trading real cryptocurrencies and related futures contracts, and above all has auditing requirements for stablecoin reserves. I quoted it.

Alesia Haas, Chief Financial Officer of Coinbase Global, said the US government needs to create a new regulatory framework for digital assets. “Our existing regulatory system does not work effectively in open, decentralized networks created by cryptography,” she said in a written testimony.

As the industry grows and more investors enter the market, tensions are growing as they believe in the future of crypto or aim to make quick money. Cryptocurrencies total about $ 2.4 trillion and are about the same size as Apple, Microsoft, or one of the largest stocks in the world.

“There’s something about crypto that scares people,” said Brian Brooks, CEO of Bitfury Group, one of Bitcoin’s early miners, who needs to add another regulator to monitor crypto. Said not. “I don’t know what it is, probably because it’s new.”

Brooks was formerly acting director of the Office of the Comptroller of the Banking industry when Donald Trump was president.

One of the big criticisms cast on cryptocurrencies is how much power they consume. According to the Cambridge Bitcoin Power Consumption Index, Bitcoin mining alone uses about the same amount of energy as all gold mining in the world, or about the same as Norway and Ukraine in a year. But only part of Wednesday’s discussion centered on it.

The executive who testified at the hearing was Jeremy Allaire, CEO of the Stablecoin Issuer Circle. Bankman-Fried FTX; Brooks of Bitfury Group; Charles Cascarilla, CEO of blockchain infrastructure company Paxos Trust Company. Denelle Dixon, CEO of the Stellar Development Foundation, who works at Haas in Payments and Coinbase.

Cryptocurrency executives head to Parliament as Congress overturns regulations | WGN Radio 720

Source link Cryptocurrency executives head to Parliament as Congress overturns regulations | WGN Radio 720

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