• US Congressmen have written a letter to the chair of the Council of Economic Advisers (CEA) demanding an explanation for their hostile stance towards crypto assets in the president’s annual report.
• The legislators believe this stance could damage the economy, and asked questions about existing regulations that protect consumers from potential risks.
• They expressed concern that this posture will drive digital asset innovation away from America, to the benefit of other countries.
US Congressmen Demand Explanation for Crypto Stances
United States Congressmen Warren Davidson and Mike Flood have written a letter to the chair of the Council of Economic Advisers (CEA), demanding an explanation for a chapter they prepared for the president’s annual “Economic Report of the President”. This chapter expressed a “hostile view towards the digital asset ecosystem”, which is contrary to what was stated in an executive order on ensuring responsible development of digital assets. In their letter, they raised questions regarding existing regulations that could potentially protect consumers from risks associated with these assets, expressing concern that such a stance would push innovation offshore and benefit other countries instead.
Legislators Object To Chapter On Crypto Assets
The legislators objected to this chapter as they believe it diminishes the role of Congress and could damage the economy with its hostility towards digital assets. They argued that by taking such a negative view towards crypto assets, it will draw capital away from America and hinder economic growth. Moreover, they asked how firms can comply with laws when products are considered both securities and commodities at once, as well as why legislation from Congress will not provide more protections than currently exist today.
Reversal Of Position From Executive Order
The lawmakers noted in their letter that this opinion marks a reversal of position taken in an executive order on ensuring responsible development of digital assets. Therefore, they requested answers regarding why such a change was made without due consideration or consultation with industry experts or stakeholders who are familiar with this technology.
FedNow & Central Bank Digital Currencies Discussed
Additionally, they questioned how FedNow – an instant payment system set to launch soon – as well as central bank digital currencies relate to crypto assets in terms of regulation and risk mitigation strategies. They also asked if there was any analysis conducted on whether or not current laws adequately cover these technologies before making any conclusions about them being inadequate or ineffective.
Conclusion
The legislators concluded their letter by asserting that they are working hard in Congress to create regulatory frameworks that allow crypto innovation to thrive alongside enacting critical protections needed for investors and consumers alike. Ultimately, they hope their demands will be met so that progress can be made in regards to how America deals with cryptocurrency technology going forward.