In December, Congressional Financial Operations Committee had a meeting that has a crucial importance on the cryptocurrency sector. The heads of the largest companies working with blockchain technologies gave their reports to introduce themselves and their company to the senators and share their ideas due to the regulation of the sector. The meeting started with a congressional representative Maxine Waters who highlighted the purpose of the conference, which is “a more complete understanding of new technologies, namely their safety for investors, environmental neutrality, the ability to increase financial inclusion, assessing systemic risks for the existing financial system, as well as researching the potential for creating and using the state digital currency.”
2021 – the year of cryptocurrencies
Congressman McHenry stated that 2021 had become the year of cryptocurrencies and the Congress meeting on cryptocurrencies was the first of its kind. Specialized terms and benefits of the crypto space have become popular and can be heard not only on the forums of crypto enthusiasts. The congressman mentioned that the creators of US legislation should provide the best conditions for new technological revolution. A weaker position in the crypto sphere can make the country less competitive.
Patriotic intentions of blockchain companies
The head of the Circle Jeremy Aller illustrated the scheme of the evolution of the Internet that is popular today. He spoke on his company interest in maintaining the status of the main world currency by the dollar, “The USDC is paving the way for the dollar to become the digital currency of the Internet. We believe that the dollar on the Internet will soon be as widespread and accessible as text messages and emails are today”.
Cryptocurrencies improves people’s lives
Head of FTX Exchange Bankman Freed announced about the potential of blockchain to transform the world. Bankman Freed is a well-known altruist, philanthropist and supporter of the concept of “earn to give”. He said that the blockchain industry has a chance to improve the lives of many people. Now many find it difficult to send money to a family in other countries. Another point is that the FTX exchange is the only one of its kind to openly share all of its market data with users.
Constructive criticism in the regulation system
Brian Brooks, head of the Bitfury Group, emphasized on the principles of work of the current financial system and earlier attempts to regulate the crypto sector. He asked the following question, “How is it possible to allow banks to issue stablecoins while at the same time creating obstacles in the way of this activity? How can you judge some crypto assets for the fact that their tokens are supposedly securities, but at the same time do not allow crypto assets themselves to become securities for the purpose of trading in already existing and regulated classical markets?” Brooks also admitted that the blockchain debate is important to anyone who cares about America’s competitiveness. Moreover, they must not harm a new nascent sector.
The problems in the financial system
The head of the Paxos Trust Charles Cascarilla cooperates with such giants as Paypal and CreditSwiss. He stated the problems of the existing system of finance, and revealed the key advantages of blockchain technologies, “Today we have to reckon with trillions of dollars ‘hanging in the air’ awaiting crediting. We need to remember about millions of people without the ability to create a bank account and about millions more who, despite having a bank account, are deprived of the opportunity to use the full range of available services”.