- Six major crypto company executives went to the US congress for a landmark hearing.
- Call for tailor-made regulations was made while harsh regulations were cautioned against so as not to drive away innovation.
- The hearing has the crypto market optimistic and “overwhelmingly positive.”
This week, the House Committee on Financial Services held a hearing titled “Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States,” featuring top executives from six major cryptocurrency companies.
These executives included FTX CEO Sam Bankman-Fried, Bitfury CEO Brian Brooks, Coinbase CFO Alesia Haas, Circle CEO Jeremy Allaire, Paxos CEO Chad Cascarilla, and Stellar Development Foundation CEO Denelle Dixon who presented a united front in urging Congress to provide a clear regulatory framework for the growing crypto industry so that innovation can thrive in the US.
“Without tailored legislative solutions that are openly debated with public participation, the United States risks unnecessarily onerous and chilling laws and regulations,” warned Haas.
Growing Popularity of Cryptocurrencies
Chairwoman Rep. Maxine Waters (D., Calif.) commented on the popularity of digital assets, which has grown past $3 trillion in value this year, saying it has “contributed to working families looking for alternatives to rebuild their nest egg.”
“Currently, cryptocurrency markets have no overarching or centralized regulatory framework, leaving investments in the digital assets space vulnerable to fraud manipulation and abuse,” she added.
Rep. Patrick T. McHenry spoke against hasty and strict regulations, arguing that making a move without understanding the technology would “only stifle American ingenuity and put us at a competitive disadvantage.” Meanwhile, current regulations are “clunk” and not up to date, he added.
Representative Pete Sessions was another one who came in support of the crypto industry as he said, “I am tremendously impressed. I see a lot of ingenuity, a lot of entrepreneurial spirit,” adding, “We need to be supportive of you.”
The crypto community saw this hearing as a win given that it was different from the last time in the manner that the lawmakers were open to understanding the industry and had their concerns addressed instead of being biased.
While some called this hearing “overwhelmingly positive” others saw this as a “bullish” sign as congress members asked informed questions to make their next move regarding the rapidly-evolving crypto landscape.
“U.S. crypto regulation is fascinating and important, and after listening to this I’m optimistic it’s in solid hands,” said Sam Trabucco, CEO of crypto quant trading firm Alameda Research.