Blockchain industry executives are testifying before the U.S. House Energy and Commerce Committee on Wednesday. They are emphasising the importance of allowing the sector to thrive despite ongoing regulatory crackdowns by federal agencies and the White House.
Moreover, the crackdown specifically targets major players in the digital-assets business. The executives seek to convey the industry’s potential and the need for a conducive regulatory environment.
Supporting the Positive Impact of Blockchain Technology
Highlighting Job Creation and Need for Improved Regulations
In prepared remarks for the hearing on “ensuring American leadership in Blockchain tech and other distributed-ledger technologies,” industry leaders portray blockchain as a positive force. They argue that the industry has the potential to generate four million blockchain-related jobs.
While acknowledging the necessity for new consumer protection laws, they call for policymakers and industry participants to collaborate in developing regulations that align with technological innovation and safeguard consumers and U.S. markets.
The Future of Blockchain Regulation: Striking the Balance between Innovation and Oversight
During the hearing, Ross Schulman from the Electronic Frontier Foundation highlights the transparency benefits of blockchains. He emphasises their potential application in legal proceedings where maintaining the chain of custody is crucial.
In addition, Schulman underlines how blockchains can enhance transparency by securely recording and verifying transactions.
Further, he emphasises the potential of blockchain technology in providing irrefutable evidence and ensuring the integrity of information. He also highlights the paradoxical improvement in Americans’ privacy due to breakthroughs in cryptography enabled by blockchain technology.
Schulman urges Congress to pass comprehensive privacy legislation driven by consumer interests and to allocate adequate funding to the FTC for investigating and prosecuting blockchain-related harms.
Preserving American Leadership and Freedom
Safeguarding U.S. Interests in Emerging Technologies Leaders of the House panel, Chairwoman Cathy McMorris Rodgers (R-Wash.) and Subcommittee Head Gus Bilirakis (R-Fla.), stress the importance of the U.S. maintaining its leadership in blockchain and emerging technologies.
They caution that relinquishing leadership would allow countries like China to set the rules, restrict freedom, and outperform the U.S. in the global economy.
Contrasting Perspectives on Blockchain Regulation – SEC Lawsuits and Proposed Tax
Republican Support for Blockchain Amid Regulatory Actions
Despite regulatory actions initiated by President Joe Biden’s nominees, Republican senators express support for blockchain applications. They acknowledge the risks associated with unregulated securities but advocate for a balanced approach that allows the industry to thrive.
SEC Lawsuits and Proposed Tax on Cryptocurrency Mining
The Securities and Exchange Commission (SEC) has recently filed lawsuits against major cryptocurrency exchanges, including Binance and Coinbase, for non-compliance with regulatory requirements.
Additionally, President Biden has proposed a 30% tax on electricity used for cryptocurrency mining.
Consumer Protection Concerns: Addressing Fraud and Scams in the Crypto Space
The hearing serves as a platform for Crypto industry executives, legal experts, and researchers to advocate for the positive impact of blockchain technology and call for improved regulations. While the regulatory crackdown continues, the hearing underscores the importance of finding a balance that supports innovation while addressing consumer protection concerns.