U.S. crypto regulations at danger, industry warns Congress. Top executives from six cryptocurrency companies will tell Congress on Wednesday. That placing new laws on digital assets should be done cautiously. Or else the activity will be driven underground or outside the United States of America.
Executives from several of the world’s largest cryptocurrency companies have suggested. In prepared testimony that they will usually support clearer laws ahead of a hearing. At the United States House of Representatives Financial Services Committee, which begins at 10:00 EST. However, they will underline that too restrictive ones would not suppress the activity. But would instead simply push it away from the reach of the United States.
Coinbase Inc. CEO Alesia Haas warned that the United States risks unnecessarily onerous. And chilling laws and regulations if it does not adopt tailored legislative solutions. That are openly debated with public participation. “The United States risks unnecessarily onerous and chilling laws and regulations.” She said in testimony released on Tuesday.
According to the report, “this might effectively drive cryptocurrency activity underground. Or to offshore exchanges with minimal or no compliance programs.”
According to the testimony, which was made public by the panel ahead of the hearing. It sets the stage for what expected to a closely watched and high-stakes event. In which members of Congress publicly press cryptocurrency executives. To defend also their businesses and flesh out ideas for policing them.
“It would be beneficial, in our opinion, if executives presented a proactive agenda. For what Congress can do to ensure that consumers and investors protected. That the government receives its taxes, and that criminals and terrorists prevented from using cryptocurrency.” Jaret Seiberg, an analyst at Cowen Washington Research Group, wrote in a note to clients.
Amid the rapid expansion of cryptocurrencies, and in particular “stablecoins.” Which are digital assets whose value tethered to existing currencies. Regulators are becoming increasingly concerned. That they could endanger the financial system if they not properly controlled.
Others, such as Senator Elizabeth Warren and Chairman of the Securities and Exchange Commission, Gary Gensler. Have expressed worry that the items could also used for illegal reasons. Or to take advantage of unwary consumers.
In November, a working committee chaired by the United States Treasury urged that Congress. Establish legislation stating that stablecoins should only issued by organizations. That have their deposits insured, such as banks. According to observers, the outcome also of Wednesday’s hearing. Could provide a solid indication of whether or not Congress would consider legislation relating. Also to digital currencies in the future.
Additionally, Executives stated that they would welcome regulatory clarity. But that overly rigid laws could be detrimental to their businesses.
In the words of Jeremy Allaire, CEO of Circle Internet Financial. “Stablecoins and internet-native capital markets are no longer too large to fail. But they are now too big to ignore.” “Policy frameworks must promote an open and competitive playing field. While also allowing for the development of new technologies,” says the author.
Stablecoins, according to their proponents, have the potential to revolutionize U.S. crypto regulations and payments. By providing a dependable, low-cost, and rapid mechanism to move funds across borders. The executives believe that the United States should also take a leading role. In the development of that technology, just as U.S. regulations. Enabled the Internet to flourish during its early expansion in the 1990s and beyond.