Six executives from Coinbase, Circle and FTX were called to offer some insight into what’s going on with the market. The title of the hearing is “Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States.” Sounds thrilling… (Seriously, though, Congress really needs to work on their marketing.)
This session, led by Congresswoman Maxine Waters, Chair of the Financial Services Committee, is pro-regulation. In a different hearing, she asked witnesses:
Today, I look forward to hearing from our panel about the risk of fraud and market manipulation that can hurt retail investors and regular consumers. Furthermore, I look forward to learning about the systemic risks presented by hedge funds rushing to invest in highly volatile cryptocurrencies and cryptocurrency derivatives.
Note the framing here. Regulators are always saying they want to understand crypto.
Prominent industry figures are always saying they’re ready to educate regulators. Coinbase is a notable exception, as it has been warring with the Securities and Exchange Commission (SEC) over the blacklisting of its LEND product. As a gesture of peace, Coinbase is sending its CFO to Congress.
In addition, five other executives from Circle, FTX, the Bitfury Group, Paxos and Stellar spoke during the hearing.
Is that why the crypto market dropped 20%? We don’t think so…
A possible surprise from the audience?
These hearings typically involve small and well-behaved audiences that consist almost entirely of Congressional and corporate staff. But sometimes there are surprises—one famous example is “Bitcoin sign guy” who photobombed former Chair of the Federal Reserve Janet Yellen:
It’s unlikely that something similar will occur during Wednesday’s hearing but, given that this is the most high profile crypto event in Washington in years and the colorful nature of the crypto community, we can’t rule it out.
Copy article link
Want to be a crypto expert? Get the best of Decrypt straight to your inbox.
The majority of committee members who spoke during the hearing supported the idea of not stifling innovation in the crypto space. While some questions arise about how regulators can ensure investor protection, the overall outcome of the discussion is positive and encouraging for the crypto space.
Jake Chervinsky, a well-known cryptocurrency attorney and chairman of the Blockchain Association, commented on the hearing by calling it “the most positive, constructive, and non-partisan public event on money.”
Congressman Patrick McHenry has called the crypto sector the “next generation of the Internet”. He added that the US Congress must work together impartially to regulate the growing sector.
Join Bitcoin Magazine page
Reception to Hearing Was Positive
The majority of the committee members who spoke during the hearing supported the idea of not stifling innovation in the crypto sector. While several questions were posed as to how regulators can ensure investor protections, the general outcome of the discussion was positive and encouraging for the cryptocurrency space.
Jake Chervinsky, a notable crypto lawyer and the head of the Blockchain Association, commented on the hearing by calling it “the most positive, constructive, and bipartisan public event on crypto.”
Committee ranking member Patrick McHenry has called the cryptocurrency sector the “next generation of the internet.” He added that U.S. Congress must collaborate in a non-partisan way to regulate the burgeoning sector.
Share this articleDisclaimerRead MoreRead Less
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.