The US dollar and cryptocurrencies such as Bitcoin, Ethereum, and altcoins have one thing in common—they are all used as a medium of exchange. That’s at least by some standards.
But that’s not a fact most US politicians want to agree with. They have now boldly called for more scrutiny of cryptocurrencies. As a result, executives from top crypto firms will be questioned before a US Congressional committee on 8th December.
Benefits and challenges of cryptocurrencies
Cryptocurrencies use a sophisticated technology known as blockchain. Crypto enthusiasts continue to support this innovation, saying this area offers huge potential.
Lately, there has been an uptake of crypto from professional to amateur investors, consumers to merchants.
This is accredited to its cheaper and faster peer-to-peer payment options without the need to give personal details.
However, with such anonymity, regulators and policymakers perceive this as a breeding ground for criminal activities, such as money laundering, drug dealing, and cyber attacks.
US and more countries calling for crypto regulations
The United States will be the first country to summon executives of top crypto firms to address the controversial sector, but certainly not the first to call for regulations.
India awaits regulation in the upcoming Cryptocurrency and Regulation of Official Digital Currency Bill 2021. In 2016, The Reserve Bank of India outrightly declared a ban on cryptocurrencies but was reversed by the Supreme Court order of March 2020.
On the other hand, China’s Central Bank banned all cryptocurrencies in 2019 and has reportedly been making a significant crackdown.
Contrary to most countries, El Salvador became the first country to accept Bitcoin as a legal tender. Bitcoin, the largest cryptocurrency by market capitalization, now boasts 14 million bitcoins in circulation.
America’s Coinbase executive among key witnesses to appear
Coinbase Global Inc. is one of the eight crypto firms that is expected to send a representative at the December hearing.
Its Chief Financial Officer, Alessia Jeanne Haas, will testify before the US House banking panel, which will focus on “the challenges and benefits of financial innovation,” according to the panel.
To provide a few examples, here are other executives expected to appear at the December hearing:
- CEO of Circle, Jeremy Allaire
- CEO of FTX Trading, Chad Cascarilla
- CEO of Bitfury, Brian Brooks, a former acting Comptroller of the Currency under Trump’s government
Brooks is said to have pushed several policies in favor of banks to engage with cryptocurrency.
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