Congress To Revise Crypto Regulations As Industry Leaders Rally

Leaders of the crypto community in the U.S have demanded comprehensive regulation and compliance guidelines to guide members of the community

The U.S. is not in a great place legislatively as of now. Regulatory bodies are levied enforcement without an established rule book, leading to an oppressive sphere that impedes innovation in the industry. Being a technology that wants to offer next-gen financial solutions in the U.S., cryptocurrency and decentralized finance legislation in the country is progressing at a plodding pace compared to the rest of the world. 

The community members have demanded in one voice through representatives, legislative regulations that regulate their actions in the community. The reps have claimed that prosecutive actions levied against the community in the U.S. are primarily unfair, as prosecuted entities are mostly unaware that they are in breach of compliance.

While pushing for legislative reforms in their congressional testimony, the reps pointed out that the general laws currently in place only serve to cripple growth in the industry. 

Given this, they requested on behalf of the community that there be a separate and unique set of regulations to guide compliance in the industry, effectively increasing the industry’s growth index and reducing unnecessary prosecutive actions.

How It Went Down

The congressional hearing that took place yesterday saw almost 40 U.S. lawmakers ask various questions regarding the different aspects of cryptocurrency to understand the industry better. Cases of enforcement and prosecutive actions by the SEC and CFTC, the county’s regulating bodies have grown in the last year, causing concern and uncertainty amongst community members. The scenario is discouraging to investing industry members, locally and internationally.

Having realized the industry’s potential and its ability to replace the traditional financial systems currently in use, members of Congress have adopted a more radical stance with regards to its legislation. Questions from the SEC and CFTC at the hearing focused more on cryptocurrencies within existing traditional financial systems. In contrast, others were interested in knowing about its potential as a tool for increasing the quality of life of Americans. 

Unclear regulations have seen Americans deprived of specific opportunities provided by various service providers in the industry. The situation can be observed in Coinbase’s withdrawal of its already developing APY credit services, citing regulation issues. Given this, the congressional hearing is another attempt to understand the industry better. 

Cryptocurrency In The U.S.

In the U.S., before the COVID-19 pandemic, the cryptocurrency had been deemed a regressive technology that would not see sustainable development. The industry, during the pandemic, saw a massive infusion of capital by investors. Retail investors with relief funds and institutional investors who wished to profit in such volatile space helped raise its relevance, which has grown significantly, with the overall market capitalization of crypto markets breaking past the $2 trillion mark.

The crypto industry has been integrated marginally into the U.S.’s many sectors, seeing various adaptations across the country with numerous political and socio-economic leaders at the forefront of its revolution.

In August, the U.S. is now the most prominent cryptocurrency country after overtaking China earlier this year. Since then, it has seen significant developments and innovations across all sectors of its economy nationwide. The majority of the recorded success is due to its massive investments in the industry.