Cryptocurrency industry executives warned the U.S. Congress: over-regulation or promotion of related activities into “underground”

Sina Technology News December 8, Beijing time morning news, six cryptocurrency company executives will testify to the U.S. Congress on Wednesday morning local time, and these executives said in advance that they must be cautious when implementing new rules on digital assets. Acting, otherwise it may cause related activities to move “underground” or outside the United States.

The House Financial Services Committee of the US House of Representatives (House Financial Services Committee) will hold hearings at 10 am EST on Wednesday (11 pm on Wednesday, Beijing time), and executives of some of the largest cryptocurrency companies in the world are preparing testimony Zhong said that in general, they will support the introduction of clearer rules for this industry. But at the same time, they will emphasize that overly restrictive regulatory rules will not stifle cryptocurrency-related activities, but will only promote their transfer to areas beyond the jurisdiction of the US government.

Alesia Haas, the CEO of Coinbase, the largest cryptocurrency exchange in the United States, warned in his testimony released on Tuesday: Faced with the risk of introducing overly cumbersome and chilling (cryptocurrency-related) laws and regulations. This may actually push cryptocurrency-related activities to the “underground”, or push them to have little or no compliance plan. Offshore exchange.”

This hearing will be of great importance to the cryptocurrency industry and is expected to be closely watched. The current situation facing the industry is that U.S. lawmakers publicly pressure the executives of cryptocurrency companies to defend their company’s business and clarify in detail their ideas on how to regulate these businesses.

However, many executives of cryptocurrency companies have advocated that the government should adopt a more lenient approach in regulating the industry.

Brian Brooks, CEO of the blockchain technology services company Bitfury, said: “There have been many such examples in history: US regulatory decisions have promoted legal activities abroad, but have harmed US investors, innovators and Workers’ interests. Cryptocurrency talent is no longer concentrated in Silicon Valley-the original birthplace of the commercial Internet-for a reason.”

The rapid growth of cryptocurrencies—especially the so-called “stablecoins”, which are digital assets whose value is linked to traditional currencies—has attracted the attention of regulators, prompting them to worry that if they are not properly regulated, cryptocurrencies may affect financial The system is at risk. Policy makers such as U.S. Senator Elizabeth Warren and U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler (Gary Gensler) are also concerned that these products may be used for illegal purposes or cause nothing. Unsuspecting consumers are being used by others.

In November last year, a working group headed by the US Treasury Department recommended that Congress pass a law stating that “stable coins” can only be issued by banks and other companies with deposit insurance. Analysts said that Wednesday’s hearing may send a good signal of how likely it is for Congress to discuss any such digital currency legislation.

The above-mentioned cryptocurrency company executives said that they welcome clear regulatory rules, but too strict rules may backfire.

Jeremy Allaire, CEO of Circle Internet Financial, a payment and consumer finance startup based on blockchain technology, said: “Stable currency and the Internet endogenous capital market are not’too big to fail’, but now It is indeed too big to be ignored. The policy framework needs to support an open and competitive competitive environment and allow new technologies to flourish.”

Proponents of “stable currency” believe that this type of cryptocurrency can provide a reliable, low-cost, and instantaneous method of global fund transfer, and therefore may bring revolutionary changes to payments. Cryptocurrency company executives said that the United States should play a leading role in promoting this technology, just as U.S. rules allowed the Internet to flourish in the early growth phase of the 1990s.

Denelle Dixon, head of the Stella Development Foundation, stated in a prepared testimony: “Let’s work together to ensure that US policymakers are aware of the regulatory prospects of this technology. Lay the foundation and develop a fruitful and wise global regulatory roadmap. I hope we can all agree on one thing: cryptocurrencies and stablecoins should not be buzzwords that are tossed about and incited by this. People’s fear of the unknown.”

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