One of the key hurdles that is keeping away the US investors from crypto industry is the unclear regulatory framework. Understanding the need for a suitable and favorable regulatory environment for the survival of cryptos in the US, a lot of industry experts and analysts in the country are seen voicing their views and suggestions to the regulators and lawmakers. In one such latest attempt. the leaders of American crypto industry have met with lawmakers on Capitol Hill for a roundtable discussion, mainly focusing on regulation for ICOs and digital currencies.
Congressman invites executives traditional finance and blockchain industry
The gathering was organized by Republican Congressman Warren Davidson, who is already held in quite a high regard in the digital asset community due to his crypto-friendly outlook. More than 50 executives of companies in both traditional finance and blockchain industry attended the roundtable with representation from crypto giants like Coinbase, Kraken, ConsenSys, Nasdaq, Circle, and Fidelity among others. The reason this meeting stands out is Mr. Davidson, the host is currently drafting a crypto regulation bill, which will be introduced in the House of Representatives later this fall.
The discussion took place in the last session before the election, giving a good chance for crypto enthusiasts to voice their concerns about the regulation of the crypto sphere. The main message, to the lawmaker, was clear: Regulators must adopt a clear and firm policy towards crypto or else the blockchain companies will be forced to look for pastures new.
After four hours of discussions, Congressman Davidson reminded that his crypto bill is still not finished and the panel was a great way to listen to the industry and decide what to include before the final draft is introduced to the lawmakers.
He said that “Legitimate players in the industry have a desire for some sort of certainty so we can prevent and prosecute fraud. I’m confident we can move forward and make this a flourishing market in the U.S. It’s imperative for us to do, we did it well with the internet.“
Mike Lempres, chief policy officer at Coinbase, reaffirmed the need for a change, saying that,
“We all want a fair and orderly market, we want all the same things regulators do. It doesn’t have to be done in the same way it was done in the past, and we need to be open to that.“
Carla Carriveau, a senior officer at Circle and a former SEC official responded that even If SEC clarifies existing laws, it is up to the Congress to step up. According to her,
“Congress has to act because the SEC has said what they thought was right, and already did what they thought they needed to do.“
ConsenSys lawyer Joyce Lai reminded the lawmakers that since cryptocurrencies are not tied with any government, their founders have little to no restrictions on the location of their business. At least half of the participants warned that US regulators need to give clarity without cracking down on crypto businesses or else the projects will move to crypto-savvy territories, like Malta or Switzerland.
Crypto experts demand operation of a regulatory framework to fit in cryptocurrencies
Earlier this week, a group of industry experts and veterans comprising of Bitcoin core developer Bryan Bishop, former Morgan Stanley managing director Caitlin Long, e-commerce coding pioneer Chris Allen, founder of Ernst & Young’s blockchain team Angus Champion de Crespigny and fund manager attorney Gavin Fearey, in an letter to SEC, put forward their intent to assist the SEC by disclosing what they feel are critical considerations for handling cryptocurrency regulation that was not addressed in other comment letters previously made public by the SEC.
The letter stated that the digital assets are a unique asset class with unique strengths and abilities and if they are fitted into existing market infrastructure, there will be the introduction of risks to investors that would not otherwise exist. The group suggested that the SEC should try to possibly update the market infrastructure if it actually wants to take advantage of Bitcoin and other technology and further strengthen the financial system.
With crypto industry experts voicing their opinions regarding regulations, one can sense the regulators too are getting active and trying to understand what the crypto industry needs. To deliver a favorable policy framework this communication bridge is necessary.
Will the US lawmakers and regulators consider the industry demand and come up with a comprehensive policy in favor of cryptocurrencies? Do let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.