Executives of Crypto Companies Demand Regulatory Clarity!

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CEOs of crypto companies are being listened to by politicians. The US has to initiate crypto regulations in a way that does not hinder innovation.

CEOs of well-known crypto companies are being listened to to contribute to the regulation of cryptocurrencies in the USA. Stablecoins, lending services and much more are yet to have regulatory clarity. Agencies like the SEC think current laws cover many of these legally, but much more is needed.

US and Crypto Regulations

The House of Representatives Financial Services Committee has witnessed some CEOs at major crypto companies in the United States form a united front, urging lawmakers to provide a clear regulatory framework for crypto.

Giremy Allaire, CEO of Circle, Sam Bankman-Fried, CEO of FTX, Brian Brooks, CEO of Bitfury, Chad Cascarilla, CEO of Paxos, Denelle, CEO of Stellar Development Foundation, giving a talk on Understanding the Challenges and Benefits of Financial Innovation in the US Dixon and Alesia Haas, CEO of Coinbase Inc. and CFO of Coinbase Global, briefed US lawmakers about the challenges their companies face as both stablecoin issuers and digital asset exchanges.

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Regulations Shouldn’t Block Innovation

In a written statement released before the commission, Allaire said that Circle supports Congress’ “National licensing and Federal oversight” efforts of stablecoin issuers, and many of them are now “too big to ignore.”

Paxos CEO Chad Cascarilla sees the US financial system as “inadequate” to handle the emerging digital economy.

Paxos CEO said:

“A blockchain-based financial architecture can settle transactions in the same day, reduce counterparty risk and eliminate costly central clearing operations. This will enable market participants and regulators to monitor and correct settlement and margin shortfalls in real time. We agree that shortening the trade settlement cycle should be a high priority for the SEC, and we are working aggressively to make this possible.”

Bitfury CEO Brian Brooks referred to the Bitcoin fund that Fidelity launched in Canada. He pointed out that regulators in other countries are taking a more crypto-friendly position.

Addressing the panel of crypto CEOs, congressman Patrick McHenry argued that the technology in the crypto space is “already regulated,” but acknowledged that any existing framework may be “bulky” and “out of date.” According to the North Carolina representative, the lack of understanding among other committee members could pose a risk of overregulation for crypto and blockchain.