U.S. House of Representatives held a hearing this Wednesday
The issue of cryptocurrencies is already a topic of national interest for the U.S. government, an industry that has grown by leaps and bounds since the invention of Bitcoin more than a decade ago; 2021 will mark 13 years since its introduction in 2008.
But now the need is to regulate this market so as not to compromise the financial system in the United States as the buoyant stablecoins are backed by fiat currencies and the fear is that this feature destabilizes the balance of the aforementioned financial system not only nationally, but also globally.
Just with that motivation, the Financial Services Committee of the U.S. House of Representatives held a hearing this Wednesday to hear from executives of market leaders Bitfury, Circle, Coinbase, FTX, Paxos and Stellar on how to carry out regulation, what limits to set and how to make sustainable this trend that marks and will mark the money market in the present and in the future.
The main objective of the government is to mitigate the risks for consumers, to ensure that information is clear and to avoid undesirable practices such as ransomware attacks, money laundering and terrorist financing.
“Without tailored legislative solutions that are openly debated with public participation, the United States risks unnecessarily onerous and chilling laws and regulations,” Alesia Haas, chief executive of Coinbase Inc said.
The international currency par excellence is still the U.S. dollar, but it may not be many years before this is no longer a reality and that security is what Congress is looking for, to foresee these changes and achieve a stable system with cryptocurrencies.
“Most of the people that I know that have invested in cryptocurrencies (have done so)…because they think they can get rich quick,” Representative Juan Vargas said. “We’ve seen this before, unfortunately, and it led to the financial crisis.”
The main option to form adequate limits could be through stabelcoins, which as their name suggests do not have the volatility of cryptocurrencies and the initiative could help them to be used soon to be able to make payments.
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