Crypto Frontline

Cryptocurrency CEOs or chief executive officers and legislators from the United States House of Representatives were on a hearing yesterday, Wednesday, December 8. These two groups have expressed their differing views on cryptocurrency regulation.

We are eager to share this important virtual currency-related report with our readers. We believe reading this news will help them understand the current status of cryptocurrency investing and trading in the United States.

According to the report posted online by Al Jazeera, which delivers the latest news and analysis from the Middle East and worldwide, the cryptocurrency CEOs urged the United States Congress to issue more lucid rules for the thriving US$3-trillion cryptocurrency industry.

These top executives from six major virtual currency firms affirmed that they would welcome regulatory clarity that could aid the cryptocurrency sector to expand. Additionally, they warned the lawmakers that excessively stringent regulations could be counterproductive and would push the digital investment asset type abroad.

Yesterday’s hearing conducted by the House of Representatives Committee on Financial Services marked the first-ever time the cryptocurrency industry’s senior leaders have elaborated on their businesses to the US legislators. This event comes amid the increasing concerns that virtual currencies may pose a systemic hazard and hurt investors. 

Moreover, the cryptocurrency industry’s senior leaders have issued repeated calls for bespoke and careful rules instead of forcing the virtual currency industry to abide by the existing regulations. 

These cryptocurrency CEOs remarked that the fast growth in the crypto-asset sector underscores the robust investor appetite for virtual assets and hence, deserves support with lucid rules instead of being stifled.

Among the cryptocurrency executives who testified are Bitfury head Brian Brooks, Circle CEO Jeremy Allaire, and FTX Trading CEO Sam Bankman-Fried.

Furthermore, Coinbase Incorporated CEO Alesia Haas, Paxos CEO Chad Cascarilla, and Stellar Development Foundation CEO Denelle Dixon were present during the hearing. On the other hand, some lawmakers have felt concerned with the various aspects they view as cryptocurrencies’ downsides.

Among these disadvantages are these virtual currencies’ volatility, complexity, and wildly varying standards around consumer protection, disclosure, reserves, and other policies. US Representative Juan Vargas pointed out that most people he knows who had invested in cryptocurrencies had done so, believing they could get rich fast.

He remarked that this incident had already happened in the past, which unfortunately had resulted in the financial crisis. We appreciate the latest hearing at the US Congress with the lawmakers and cryptocurrency CEOs in attendance.

We believe the two camps were able to hear each other’s perspectives regarding cryptocurrency regulation. We agree with the cryptocurrency CEOs that the legislators should issue clearer rules for the booming virtual currency industry.

We understand the lawmakers and regulators’ fear of cryptocurrencies potentially putting the financial system at risk if not properly monitored. We know that they are merely safeguarding the investing public of the United States.

Nevertheless, now that these government officials have already heard the explanation of the cryptocurrency CEOs, we believe the latter’s insights deserve to be considered. 

We hope the cryptocurrency CEOs and US lawmakers will eventually find themselves on the same page. In this manner, the investing public will no longer be caught in the middle and be able to relish their cryptocurrency investment journey’s benefits in the long run.