Crypto News: Democrats and Republicans Vote on Crypto

By Aleksandra Wilson
3 min read December 14, 2021

It seems that the last hearing at the Congress brought some light on the Democrats and Republicans Vote on Crypto legislation. During the hearing, major crypto companies stepped into the scrutiny of Congress for the first time. They argued that the booming industry requires federal supervision without the rigid policies that regulators advocate for. 

One key discussion point was deciding if digital currencies are assets that the Securities and Exchange Commission should police. Alesia Haas, Chief Financial Officer of Coinbase Global Inc., testified that she strongly disagrees with that approach. Haas argues that rules that are decades old, designed specifically for different kinds of assets, like stocks, are not appropriate for digital currencies.

The hearing lasted for almost five hours, and companies expect it to help legitimize the crypto industry. On the other hand, it revealed the difficulties that the federal government faces in trying to regulate the industry.

About the Participants

The leaders of significant crypto projects, such as Circle Internet Financial Inc., and Coinbase, were questioned. Interviewers wanted to know how their businesses should be overseen, to which the executives answered clearly. 

The lawmakers raised clear divisions that demonstrated that the prospects for approving the legislation are not clear. However, the hearing allowed crypto companies to assert that this could be a milestone for the industry. 

What Is at Stake with the Democrats and Republicans Vote on Crypto?

Millions of Americans have dived into investing in cryptocurrency assets; the market value is nearly $2.4 trillion. The regulators and lawmakers are struggling with how to monitor the securities. 

The executives’ testimonies provided some light on the learning curve that the government officials at the capital will have. Some members of the democratic party expressed their concerns about fraud and other abuses of such nature. Meanwhile, republicans focused on the fact that too much regulation will slow down the natural innovation process.

Vulnerability to Fraud

Maxine Waters cautioned that the industry is vulnerable to manipulation, fraud, or abuse without federal supervision. People in the US keep making financial investments in digital assets by the hour. Without the proper regulation, officials expect for fraud to increase too.

On the other hand, Patrick McHenry, from the republican party, argues that the Democrats first need to understand tokens. He also stated that Congress should embrace digital assets, like cryptocurrencies, to make sure investment grows in the US.

The Main Concerns About an Open System

Some Democrats in the panel stated their concerns as executives mentioned that tokens could help people without access to banks. Jeremy Allaire from Circle pointed out that it’s an open financial system. The system allows anyone with a mobile device to exchange value with another person anywhere in the world.

The committee of democrats kept questioning the protection provided for investors on tokens. Moreover, they allege that they notice extreme volatility in this market and question the possibility of a bubble. 

Conclusion

There have been a lot of people working in the creation of something new that could potentially bring technology to the masses. We’ve been witnesses to the evolution of the crypto industry. We have seen the advantages as well as the areas of opportunity for it. Unfortunately, it seems clear that it will take a few more attempts to get some of this progress done before the Democrats and Republicans vote on crypto can favor the industry.

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