Crypto officials ask US Congress to have clear rules on companies | Crypto News
Cryptocurrency officials also warned lawmakers that strict rules would push goods offshore.
Supervisors of the top five major cryptocurrency companies including Coinbase and Circle on Wednesday urged the United States Congress to issue clear rules for companies $ 3 trillion, but warned that strong restrictions on pushing out.
The House of Representatives Committee on Financial Services heard for the first time the executives of the companies explained their business to US regulators as concerns mounted that cryptocurrencies could pose systematic risks and financial harm.
Crypto executives repeatedly call for strict, legitimate laws instead of forcing companies to comply with existing laws.
“Without legal mechanisms that openly oppose public participation, the United States could be at risk of unconstitutional laws and regulations,” warned Alesia Haas, chief executive of Coinbase Inc.
Congress will not be able to enact new crypto laws anytime soon, according to experts, and policymakers treat the conference as a case study.
Democratic Representative Maxine Waters, who chairs the committee, said there were questions about proper oversight and cited the stablecoin plans of Inc Inc. as a major concern due to the company’s massive global expansion.
Some lawmakers, particularly Republicans, praised the authorities for directing what could be a very important profession.
“I have been very impressed. I see a lot of wisdom, a lot of entrepreneurial spirit, ”said Representative Pete Sessions, of the Texas Republican. “We need to help you.”
Circle CEO Jeremy Allaire, FTX Trading CEO Sam Bankman-Fried, Paxos CEO Chad Cascarilla, Stellar Development Foundation CEO Denelle Dixon and Bitfury head Brian Brooks also testified.
Digital goods
The rapid growth of cryptocurrencies, especially stablecoins – a digital asset based on traditional currencies – has attracted the attention of regulators, who fear that they could jeopardize the financial system if not properly managed.
Some policymakers, such as Senator Elizabeth Warren and Securities and Exchange Commission Chair Gary Gensler, are also concerned that the material could be used for improper use, or to exploit unsuspecting consumers.
In November, a U.S. Treasury task force recommended that Congress pass a law requiring stablecoins to be issued by insurance companies, such as banks.
Supervisors say they would agree to a fair hearing, which would help the business grow, but strict restrictions could be counterproductive.
The rapid growth of the sector underscores the strong commercial interest in digital products and should be supported by clear rules rather than fraud, he said.
Bitfury’s Brooks, former CEO of Binance US business and before banking, told policymakers that crypto currencies are synonymous with traditional economies.
“We are the last country that did not realize this,” he said.
But the complexity and instability of cryptocurrencies – as well as the wide variety of disclosures, securities, consumer protection and other factors – left the policymakers involved.
“A lot of people I know have invested in cryptocurrencies [have done so] “Because he thinks he can get rich quick,” said Attorney Juan Vargas.
