Crypto Ecosystem Criticized By Republican Lawmakers In Response To Biden Administration’s Actions

Today marks the first hearing of the United States House of Representatives subcommittee on crypto assets, financial technology, and inclusion. Republican lawmakers plan to raise concerns regarding the Biden administration’s regulatory actions towards the digital asset ecosystem.

GOP memo accuses Biden administration of overreaching jurisdictional authority, impacting digital asset ecosystem. Consequently, the United States faces the risk of pushing the digital asset ecosystem to overseas locations.

BitGo and Coinbase execs to testify at a subcommittee hearing. The subcommittee also reviews five pieces of draft crypto-related legislation, including the Keep Innovation in America Act.

During his prepared testimony, Belshe argued that regulators must treat digital assets similarly to other assets by applying existing rules or creating new ones. He cautioned against assuming that digital assets are fundamentally different and that rules for traditional assets cannot be applied.

In Sep 2022, the White House released a comprehensive framework for digital assets with six principal directions for crypto regulation in the U.S. Moreover, the subcommittee hearing falls precisely one year after U.S. President Joe Biden signed an executive order to establish a regulatory framework for digital assets.

During the hearing, witnesses, including Penn State Dickinson Law professor Tonya Evans, criticized the framework for failing to fulfill its promise and providing clear engagement rules for regulated parties in this new asset class.

Industry Representatives Testify At Subcommittee Hearing

Industry representatives at the subcommittee hearing expressed concerns about regulatory uncertainty regarding digital assets. Regulatory clarity and consistency are vital to prevent a departure from the digital asset industry.

In addition, representatives pointed out the challenge of staying up-to-date with crypto industry innovations. They emphasized the need for regulators to provide timely guidance to support growth and development in the industry.

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The subcommittee’s review of draft legislation related to crypto regulation indicates that lawmakers are increasingly focused on the impact of digital assets on the financial system. However, partisan disagreements on crypto regulation persist, with Republican lawmakers criticizing the Biden administration’s approach to providing guidance.

Given the rapid evolution of the digital asset ecosystem, it is unclear how regulators will balance the need for innovation and growth with investor protection and financial stability.

The author’s views are for reference only and shall not constitute investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing

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