Crypto Industry Pushes for New Regulations as Jobs and Innovation Threaten to Go Overseas
Who is pushing for what regulations on crypto, when, where, why, and how? The "Stand with Crypto" movement led by Coinbase is lobbying lawmakers to pass industry-friendly rules, warning on September 28, 2023 that without them, jobs and innovation will leave America for overseas.
In this vital news for the crypto industry and US economy, you'll get the key facts, opinions on both sides, a Bitcoin argument, prediction, historical parallels, and answers to key questions.
The crypto industry descended on Capitol Hill yesterday, urging Congress to provide regulatory clarity that would support growth and jobs in crypto and protect consumers. The push, led by Coinbase CEO Brian Armstrong, comes as SEC Chair Gary Gensler continues to criticize the industry as "rife with fraud."
Over 50 crypto founders joined Coinbase in Capitol Hill meetings, echoing the need for clear new rules tailored to digital assets. They warned that without crypto-specific policies, jobs and innovation would go overseas, harming America's global standing in emerging technologies like 5G and semiconductors.
The House Financial Services Committee advanced bipartisan legislation this summer that would fill regulatory gaps between the CFTC and SEC while directing the SEC to write new, crypto-specific regulations. Armstrong believes reasonable rules can emerge from House efforts and bills by Senators Lummis and Gillibrand. But analysts see no path forward this Congress, given Democratic objections.
Though Gensler raises valid concerns about crypto fraud requiring strong consumer protections, the SEC’s targeting of the industry rather than focusing on bad actors feels excessive. Thoughtful guidelines would enable crypto innovation while guarding consumers.
Bitcoin's decentralized design is resistant to fraud seen in overly-centralized crypto projects. Its transparency and immunity from political whims make it ideal for protecting wealth amid questioned government policies.
If bipartisan legislation remains stalled, crypto jobs and investment will likely shift abroad. But public pressure and midterm results could break the logjam in 2023.
Like industrialists who spurred railroad expansion in the 19th century, today's crypto builders are pushing economic growth yet require oversight to check excesses. Similarly, just as aircraft technology advanced under early 20th century regulations, crypto innovation could thrive under clear rules and with safety nets against volatile markets.
Should the Crypto Industry Receive Industry-Specific Regulations?
Yes, the crypto industry merits tailored policies that nurture responsible growth. Unique features of crypto, like decentralization, call for rules that distinguish digital assets from traditional securities. With well-designed guardrails that curb illicit activity while encouraging innovation, crypto development can flourish in America.
How Can Bipartisan Crypto Legislation Emerge From Congressional Gridlock?
Momentum for bipartisan crypto legislation could build through engagement between industry and lawmakers. Accepting targeted regulations while emphasizing crypto's economic potential may convince doubters. And mainstream adoption easing public doubts could pressure Congress. Avoiding overt partisanship and emphasizing consumer protections alongside innovation may enable breakthroughs.
