Crypto chief executives headed to Congress to voice support for clearer regulations, but disagreed to ‘shoehorning’ the old regulatory framework on new digital assets. The attitude of Congress may determine if the US can remain in its global position.
Executives from six leading cryptocurrency companies, namely Coinbase, Circle, FTX, Bitfury, Paxos, and Stellar Development Foundation, headed to Congress for a landmark hearing on Wednesday, urging for clearer rules for the industry.
During the five-hour hearing, Sam Bankman-Fried of FTX, testified about the increasing importance of the crypto industry and the industry’s welcome for regulatory clarity. However, executives also warned that over-restrictive rules would be counterproductive to the development of the industry.
Meanwhile, Jeremy Allaire, CEO of stablecoin issuer Circle shared the same view, said “there’s a lot of work to do to define reserve, liquidity, and capital requirements for global-scale stablecoin issuers,” and pointed out that “the stablecoins and internet-native capital markets are now too big to ignore”.
Moreover, crypto executives urged Congress to clarify the overlapping jurisdictions between agencies like the SEC and CFTC, and to allow stablecoin operators like Circle to come into the existing banking system.
US-China: Who’s Winning the Digital Currency Race?
While the discussion over the future of the cryptocurrency industry is heating up in the United States, China is moving forward on the e-renminbi. The re-imagination of money may shake a part of the dominant power of America.
Allaire mentioned, “The United States, and the U.S. dollar, [are] winning the digital currency space race, today. Dollar stablecoins are doing trillions of dollars of transactions, the experimental beta of the Chinese Yen is only doing ten billion dollars of transactions.”
However, the tone of Congress towards crypto may play a major role in determining who the final winner would be in this race. In the hearing, the majority of both Democrats and Republicans are showing a positive attitude. Furthermore, some Democratic members expected crypto and blockchain wallets would become lower-cost alternatives to the existing banking system.