Members of the Republican Financial Services Committee said, “Because to measures done by this administration, the United States risks exporting its digital asset ecosystem.”
According to Republicans on the Financial Services Committee, “the United States is at danger of driving the digital asset ecosystem offshore” due to the current administration’s policies.
Partisan splits on crypto regulation are hinted at in statements made by Republicans before the first hearing of the United States House of Representatives subcommittee focusing on digital assets, financial technology, and inclusiveness.
On March 9, the committee will hold one of its first hearings since Congressman Patrick McHenry took over as head at the beginning of the 118th Congress.
The paper claimed that the “Biden Administration has published comments and proposed rulemakings that have unfairly harmed the digital asset ecosystem” during the last two years. Several of these measures constitute an excessive use of power that is not properly delegated. Moreover, the repercussions of these policies cannot be overstated. The current administration’s policies threaten to export the digital asset ecosystem from the United States.
Witnesses from the cryptocurrency business, such as BitGo’s co-founder and CEO Mike Belshe and Coinbase’s chief legal officer Paul Grewal, are scheduled to appear during the hearing. McHenry’s Keep Innovation in America Act is one of five pieces of proposed crypto-related legislation currently being reviewed by the panel.
In prepared testimony, Belshe said that regulators have two options: either they will proclaim that digital assets are regulated in the same manner as regular assets and apply the same rules, or they will state that they are distinct and adopt new laws.
Then he elaborated: “I feel it’s important to stress that the present administration’s approach to regulating the economy is not solely to blame for this. Our 2018 letter to the SEC was sent under the Obama administration. Keeping up with technological advancements is an ongoing challenge.”
After an extensive investigation by government agencies, the White House announced a digital asset framework in September 2022, outlining six main possibilities for crypto regulation in the United States. Witness Tonya Evans, a law professor at Penn State Dickinson, has said in prepared statements that the above framework has “failed to deliver its promise.”
Exactly one year after Vice President Joe Biden issued an executive order to create a regulatory framework for digital assets, the subcommittee will hold a hearing on the topic. In response to the directive, many government agencies have begun researching the effects of cryptocurrencies on the US financial system and, in certain instances, proposed new regulations.
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