Top executives and representatives of the biggest firms in the ecosystem of American digital currency requested Congress to verify the state of the crypto industry.
After meeting with the divided House, CEOs disagreed on the approach to employ regulations in the crypto industry. They demanded clear crypto regulations.
Crypto Executive Wants New Legal Definitions
Co-founder and CEO of Paxos Trust Co., Charles Cascarilla stated, ‘We want clear crypto standards and governmental support to create an improved, competitive, and secure financial system.’ He further mentioned that the advantages of getting it right are huge so much so that the ramifications of getting this wrong.
Furthermore, Alesia Haas (Coinbase Chief Financial Officer) criticized Gary Gensler (Chairman of SEC), who regulates digital currencies as securities. Executive of Coinbase commended for cryptocurrency regulated future wherein governing agency would give clear definitions instead of the SEC. In Haas’s opinion, ‘it will be beneficial for all of us in the cryptocurrency ecosystem if we all agree upon the definitions offered.’ She further said, ‘we believe clarity must be provided.’
Ideological Split
However, Republicans advocated the stance of crypto executives. They expressed their trust in the potentials of technology backing the crypto industry. Nevertheless, they did not promise an encompassing regulation for which executives were suing. And their approach was considered favorable as compared to that of Democrats’. They supported the stance that the ecosystem has notable lapses that cannot be precluded.
Not only this, in this hearing, Greg Baer (CEO and president at Bank Policy Institute) stand-in for this biggest bank advocating for equal levels of crypto regulations for digital currency service providers and financial institutions. These are the organizations that operate on varying rulebooks.
In summary, crypto executives demand a regulatory revamp and new legal definitions with certain limits. However, this Ideological split indicates that a new crypto law cannot be expected anytime soon.
