The House Financial Services Committee has released a memo that details their priorities in front of the crypto CEO hearing. The committee is looking to protect American investors and consumers, while also promoting innovation within the blockchain industry.
The “bitcoin regulation” is a memo that was released by Congress. The memo details the priorities of Congress ahead of a hearing with crypto CEOs.
The US House Committee on Financial Services has issued a memorandum outlining the topics that will be discussed at today’s hybrid hearing on digital assets, which will begin at 10:00 a.m. ET.
The document, which was sent to members of the Financial Services Committee, stated that one panel of the hearing would be dedicated to six CEOs from the crypto world as witnesses. Jeremy Allaire of Circle, Samuel Bankman-Fried of FTX, Brian Brooks of Bitfury Group, Charles Cascarilla of Paxos, Denelle Dixon of Stellar, and Alesia Jeanne Haas of Coinbase are among those on the list.
The hearing, titled “Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States,” will focus on four main areas of crypto exchanges: stablecoin offers, digital asset regulatory issues, and federal regulatory responses.
“This hearing will examine some of the new products and services offered by major digital assets market participants, the role of cryptocurrency market exchanges in facilitating cryptocurrency investments and related transactions, the growth of stablecoins and other digital assets, and the current regulatory landscape governing these new products and services,” according to the brief.
@RepMaxineWaters, Chairwoman of the House Financial Services Committee, Announces #Cryptocurrency CEOs to Testify at Full Committee Hearing | https://t.co/6IBi6jGNAC pic.twitter.com/r4kJqjmhqu
— December 1, 2021, U.S. House Committee on Financial Services (@FSCDems)
While the memo emphasizes the importance of exchanges as an entry point for crypto investors, the hearing will also cover decentralized finance, which has the potential to “replicate and replace conventional delivery of financial services such as loans, asset trading, insurance, and other services,” according to the memo.
The paper also discusses how stablecoins vary from fiat money in terms of operating frameworks and reserve compositions, stating:
“Cryptocurrency marketplaces lack a centralized and overarching regulatory structure, making digital asset investments prone to fraud, manipulation, and abuse.” Money laundering, terrorist funding, sanctions evasion, kleptocracy, and other illicit finance threats may all be posed by digital assets and linked service providers.”
Recognizing the emergence of cryptocurrencies, Congress aims to adopt a clear position on central bank digital currencies (CBDC) based on the Federal Reserve’s continuing investigation to “explore the potential advantages and hazards of CBDCs, as well as their influence on the U.S. domestic payments system.”
Circle CEO Jeremy Allaire issued remarks only days before the hearing, stating:
“In a world where money is becoming a core feature of the internet, the United States should aggressively promote the use of the dollar as the internet’s primary currency, leveraging it as a source of national economic competitiveness, security, and a major upgrade needed for more efficient and inclusive financial services.”
Circle, Allaire’s company, is the exclusive issuer of USD Coin, a dollar-backed stablecoin (USDC). He stated that the US government may utilize dollar-denominated reserves to mainstream the stablecoin. “Policy frameworks must encourage an open and competitive playing field, allowing innovative technologies to thrive,” he said.
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