The situation regarding crypto in the United States is complicated, to say the least. This is majorly why the house committee on Financial Services heard from several Crypto CEOs yesterday. Moreover, the crypto CEOs are urging Congress to provide a clear regulatory framework regarding cryptocurrencies.
Speaking at the Wednesday hearing, the CEO of Circle, FTX, Bitfury, Paxos, Coinbase, and Stellar talked about their companies’ challenges. More so, this is affecting both stablecoin issuers and digital asset exchanges.
CEO of Circle crypto platform, Jeremy Allaire, stated that his company supports the efforts of Congress for “national licensing and Federal supervision” of stablecoin issuers. However, he added afterwards that the current system of U.S. finances is not enough for handling the digital economy. Also, he said that blockchain technology could provide a solution for this.
Paxos CEO, Chad Cascarilla said:
“A blockchain-based financial architecture could settle trades on the same day, mitigate counterparty risk and eliminate the costly central clearinghouse.”
He also added:
“This would enable market participants and regulators to monitor and correct settlement and margin shortfalls in real-time. We agree that shortening the trade settlement cycle should be a high priority for the SEC, and we are working aggressively to make that possible.”
While addressing the pane of crypto CEOs, Representative Patrick McHenry said that the crypto space is “already regulated”. Also, a lack of understanding among his fellow community members could risk overregulating crypto and blockchain.
The House committee hearing plans to discuss four key aspects of the crypto space: exchanges, stablecoin offerings, regulatory concerns in digital assets & federal regulatory responses.