US Congress Has A Positive Tone On Crypto Regulation In Latest Hearing
A recent congressional hearing on the US House Committee on Agriculture has struck a positive note on how can cryptos and the blockchain technology have in the economy of the world. The hearing had many experts including entrepreneurs, academics and engineers.
Some of the most important people on the hearing were:
- Joshua Fairfield (Professor of Law at Lee University School of Law)
- Amber Baldet (Co-Founder and CEO of Clovyr)
- Scott Kupor (Managing Partner of Andreessen Horowitz)
- Daniel Gorfine (Director of LabCFTC and Chief Innovation Officer of CFTC)
- Gary Gensler (Senior Lecturer at MIT Sloan School of Management)
- Lowell Ness (Managing Partner)
Bitcoin’s Role In Alleged Russian Hacking
The reunion had many different topics discussed. One of them was the recent indictments of 12 people linked to Russia that hacked DNC emails during the American elections of 2016. Bitcoin was mentioned because the hackers used to fund their activities.
However, Bitcoin went on a positive light during the hearing, as it was explained that it was exactly the public ledger of Bitcoin that allowed the investors to locate the movement of funds, which would be harder to do with cash. According to the committee chairman, Michael Conaway, it would be great if “stupid criminals” kept using Bitcoin.
A More Technical Discussion
With so many experts on the discussion, this panel was considerably more technical than the other ones, even SEC’s. Amber Baldet was able to make a good case for blockchain stating that it is like the technology that served for the infrastructure of the internet. Because of this, it would not be a sensible idea to regulate it too much.
According to her, the committee should take a proactive approach and support the technology instead of being “reactionary” with it, as they did with the internet back then.
Some people were concerned about ICO scams and the volatility in the price of Bitcoin. While they agreed there were a large amount of scammers and most ICOs have become bankrupt, Daniel Gorfine stated that education is needed to avoid scams and understand the technology.
Like any market, there will be bad actors and scammers, so Gorfine believes that being proactive and having education can diminish the problems as lack of education and murky regulation is the main problem that the industry is facing right now.
Quicker Regulations To Keep Innovation Flowing
Gary Gensler, the Senior Lecturer at the MIT SLoan School of Management, has encouraged the Congress to regulate the market fast, as innovations will be left behind in this uncertainty climate that the market is having. He also believes that if the country is not clear or too harsh on regulations, other countries will benefit from that.
It could be a concern for the United States if other countries could get ahead of it in this industry as most of the innovators could decide to leave the country.
The Issue of Centralization
The chairman of the committee, Michael Conaway, the hearing was “very elucidating”. However, he was not 100% enthusiastic about Bitcoin. According to him, 90% of all the circulating Bitcoin is in a few wallets and the industry is becoming heavily centralized.
Another point that concerned the chairman is that Russia and China are the two largest Bitcoin miners in the world, having more than 50% of the mining power. Bitmain, for instance, is rapidly expanding on its business globally.
This is just one of many other meetings that will be happening soon. It was said that bring so many experts to the hearing was a great idea and the committee will probably do it again in the future.