The ongoing hearing brings together US lawmakers and industry leaders to discuss different aspects of cryptocurrencies and their regulation.
The executive directors (CEOs) of six companies in the cryptocurrency industry are meeting this Wednesday with the Financial Services Committee of the United States House of Representatives to discuss aspects related to the regulation of digital currencies.
The CEO of Circle, Jeremy Allaire, the CEO of FTX, Sam Bankman-Fried, the CEO of Bitfury, Brian Brooks, the CEO of Paxos, Charles Cascarilla, the CEO of Stellar Development Foundation, Denelle Dixon, and the CEO of Coinbase Inc., Alesia Haas, participate in the event in Washington DC.
The discussion, which started at 10 a.m. ET, highlights growing interest in digital currency space among US lawmakers and it could have an important impact on the future regulation of the industry in the North American country.
More than fifty members of the US Congress participate in the meeting, an opportunity to ask questions or clarify concerns about the sector. The news medium CoinDesk has been broadcasting and reporting the event live.
Cryptocurrency leaders arrive in Washington
An official memorandum on the hearing revealed that the central theme of the regulators will be the stablecoins or tokens linked to fiat currencies. However, the meeting also addresses general issues related to cryptocurrencies, such as current market perception, investor protections and the place of these assets in society and the current economy.
“Today’s audience is part of the [esfuerzo] continuum of this Committee“To understand the cryptocurrency industry and the issues surrounding it, said US Representative and Committee Chair Maxine Waters in a keynote address cited by CoinDesk.
As of press time, most industry CEOs have submitted comments to lawmakers. A variety of topics have been touched upon, ranging from cryptocurrency mining and its environmental impact, to the approval of the world’s first futures ETF. Bitcoin In U.S.A. Some of the benefits that digital currencies and currency can bring have also been brought to light. stablecoins to banking and financial services.
In a written statement issued before the hearing, which was quoted by Cointelegraph, Allaire said Circle supported Congressional efforts to “national licensing and federal oversight”From stablecoin issuers. The CEO of Paxos it seemed echo this sentiment and described the US financial system as “inadequate”To manage the emerging digital economy; although he noted that blockchain technology may offer a possible solution:
A Blockchain-based financial architecture could settle trades the same day, mitigate counterparty risk, and eliminate the costly central clearinghouse. This would allow market participants and regulators to monitor and correct settlement and margin deficits in real time.
A turning point for crypto in the US
Among regulators, a number of questions have been raised about the sector, including some around the possible creation of a digital dollar based on Blockchain issued by the Federal Reserve (FED). Meanwhile, the leaders of the crypto space have also raised their concerns, taking advantage of the space to ask lawmakers for clearer regulation for companies in the sector.
Tomicah Tilleman, Policy Leader at Andreessen Horowitz, said the hearing has been constructive and represents a milestone in financial and technology regulation for the United States. “This is the first time that members of Congress have used the platform of a full committee hearing to highlight that Web 3 is the future of the Internet. “, said and continued:
It’s a historic turning point in the national conversation on decentralized technology. You are also seeing members recognize the potential of web3 platforms to solve many issues that concern them, including remittances and financial inclusion. So far, the tone of all participants has been reasonable and constructive.
Still ongoing as of press time, the House committee hearing seeks to discuss four key aspects of the cryptographic space, in accordance with Cointelegraph. These are: exchanges, offers of stablecoins, regulatory concerns on digital assets, and federal regulatory responses. Lawmakers are likely to also discuss other topical issues like decentralized finance (DeFi), given its potential to revolutionize financial services.
It should be noted that the Senate Banking Committee will follow up on this meeting with an audience dedicated to the issue of stablecoins Tuesday of next week.
Article by Hannah Estefanía Pérez / Daily bitcoin
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