The US Congress has set a date for a hearing to discuss the future of cryptocurrency. On March 18th, key figures in the crypto space, policymakers, and industry leaders, will testify to the Financial Services Committee on the state of digital currencies today and where they are headed in the years to come. Congress is hoping the hearing will shed light on existing and potential risks and coin regulations.
2. Members of Congress to Debate Crypto Regulation
Lucrative crypto markets are posing a controversial question for many federal lawmakers: should the government intervene and regulate the booming sector? Congress will soon debate the matter directly, as Republican Congressman Warren Davidson is leading a discussion about cryptocurrencies in a “Crypto Roundtable”.
Industry experts, along with prestigious legislators, are expected to innovate key regulatory concepts and help members of Congress gain an understanding of the industry. According to several reports, the “Crypto Roundtable” serves as an invitation-only event that will take place on September 25th.
The list of attendees includes some big names of the cryptoverse, including:
- Galaxy Digital CEO Michael Novogratz
- Circle CEO Jeremy Allaire
- Ripple CEO Brad Garlinghouse
- Coinbase CEO Brian Armstrong, and
- Andreessen Horowitz co-founder Chris Dixon
The list also includes several other notable members of Congress, such as U.S. Rep. Darren Soto, U.S. Rep. W. Gregory Steube, U.S. Rep. Ted Budd, U.S. Rep. Bill Foster and U.S. Rep. Stephen Lynch.
3. Financial Regulators To Provide Insight on Crypto Policy
Since the rise of cryptocurrency, governments around the world have attempted to introduce regulation in the industry. But few definitive rules have been introduced and this has led to uncertainty amongst investors. To provide more clarity, financial regulators are beginning to offer their insight on crypto policy.
In the US, the Securities and Exchange Commission has established a “strategic hub” dedicated to overseeing cryptocurrency and other fintech investments. The Financial Industry Regulatory Authority has been another player in this space and has offered guidance to investors as well as policy makers.
International institutions such as the Financial Stability Board and the Bank for International Settlements have also voiced their opinions on crypto policy, advising governments to opt for light-touch regulation and promote innovation. They have also suggested that bank-style regulations are inadequate when dealing with tokens, given their often-decentralized nature.
4. Experts to Testify on Role of Crypto in U.S. Economy
As the role of cryptocurrency becomes increasingly integral to the US economy, experts with expansive knowledge of the field are being called upon to examine its potential impacts. Representatives from major research institutions, financial organizations, and government bodies are testifying at the House Financial Services hear on Thursday, January 9th.
The Witness List
- Lawrence H. Summers – Secretary of Treasury, 1999-2001
- Mitchell M. Polsky – U.S. Chief Tax Advisor and expert on blockchain technologies
- Jeremy Allaire – Executive Chairman and Co-founder of enterprise blockchain company, Circle
- Kendrick Nguyen – CEO of cryptocurrency exchange, Republic Protocol
- Neha Narula – Director of Digital Currency Initiative at MIT Media Lab
- Garrett Reisman – Professor at Viterbi School of Engineering, University of Southern California
The goal of the hearing is to assess the affect of cryptocurrency on the US economy. Representative Maxine Waters, the Chair of the House Financial Services Committee, has stated “Cryptocurrencies have the potential to be a powerful new technological tool, but we must remember that investors need the proper protections.” Decisions about the future of cryptocurrency in the US will be largely informed by the expert testimony.
5. Will U.S. Policies Impact the Future of Crypto?
The topic of whether or not the US government will put crypto regulations in place is one that has been debated among investors for some time, and it’s clear that their decisions in the coming years will surely impact the future of crypto.
The United States has always been a leader when it comes to technological innovation, and the emergence of cryptocurrency is no exception. The US federal government has been slow to act so far, but there are indications that this may start to change. There have been a number of legislative efforts in the US Senate to establish some form of regulation for digital currencies, but nothing has been finalized as of yet.
It is still too early to tell exactly what kinds of policies the United States will put in place, but it is clear that whatever they do, it will have a huge impact on the future of crypto. Any regulations or laws that are put in place will be seen as precedent for other countries, and will surely shape the future of digital currencies.
Some experts have suggested that the US may take a stricter stance on cryptocurrency as time goes on, while others have argued that the government will take a more hands-off approach. Whatever the outcome, it is clear that US policies will have a major role to play in the future of crypto.
6. Could a Crypto Framework be Established?
With the proliferation of cryptocurrencies, centralized networks, and digital assets, there has been discussion of establishing a framework for crypto management across the world. Many analysts believe that if such a system were to come about, many of the rising issues surrounding crypto assets could be prevented. Here, we will look at how such a system could potentially be implemented.
Firstly, a key aspect of implementing a successful system would be to gain widespread regulatory approval from international and regional authorities. It is highly unlikely that investors would be willing to adopt a framework without the assurance of legal protection. Creating an effective regulatory infrastructure could be challenging, requiring buy-in from legislators in multiple countries, but nonetheless it is essential for a healthy crypto market.
Secondly, reliable custodians and exchanges are necessary to ensure the safety and security of users’ digital assets. This could be facilitated by advocating for strict KYC/AML laws, commissioning regular security audits of wallet providers and exchanges, and ensuring that users have access to compensation if their wallet provider or exchange is compromised.
Finally, if a successful crypto framework is to be established there must be a single unified protocol facilitating all crypto-related activities. This could be done by developing a smart contract platform or an institutional-grade blockchain, which could be used to coordinate trades and transactions between exchanges, custodians, and other stakeholders in the system.
- Regulatory Approval: Approval from multiple international and regional authorities will be required to create a successful system.
- Secure Custodians and Exchanges: Reliable custodians and exchanges are necessary to ensure the safety and security of users’ digital assets.
- Unified Protocol: A single unified protocol facilitating all crypto-related activities could be developed.
Concludes this report, the date for the US Congress hearing on the future of cryptocurrency has been officially set. As lawmakers sort out the finer details of laws surrounding digital currencies and their respective taxation, crypto enthusiasts will be watching closely to see what, if any, legislation comes out of this significant hearing.