Altcoin News: US Senators Examined the Risks and Benefits of Cryptocurrency Legalization

July 31, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The US Senate Banking Committee on July 30 held a scheduled hearing on regulatory issues for the cryptocurrency industry and the blockchain. To address the legislators were invited CEO Circle Jeremy Allaire, an expert on international trade and finance, Rebecca M. Nelson and Professor of Law at the University of California Mehrsa Baradaran writes Cointelegraph.

Senator Mike Crapo began the meeting with a statement that cryptocurrencies and blockchains are an integral part of the modern world and can prove their usefulness, and the United States should take on the role of a global leader in this space.

“I want the U.S. to stay at the forefront of this technology, which both has incredible potential and incredible risk,” he added.

Senator Catherine Cortez-Masto said that she believes in the potential of the blockchain and the need for China to stay ahead in this space.

As expected, one of the main topics of the meeting was the cryptocurrency project of Facebook. Senator Sherrod Brown noted that the social network “argued every time that it was not credible.” Brown stressed that Facebook intends to undermine the US dollar and the payment system, hiding its true intentions behind the “innovations”.

Responding to Brown’s criticism, Nelson noted that Facebook’s entry into the cryptocurrency industry could be a turning point, but Libra had caused apprehensions to regulators even before its launch. Nelson believes that the Facebook announcement has led to a change in the nature of discussions about cryptocurrency.

Aller explained that the first wave of cryptocurrency assets was aimed at creating a global digital currency, but their distribution among the mass consumer required the creation of stablecoins, such as Libra. He also drew attention to the hostile attitude of US lawmakers to such initiatives, which is why Facebook had to register its cryptocurrency abroad. Aller believes that it is necessary to regulate digital currencies, but Congress should relate them to a separate asset class.

“Digital money will move frictionlessly, everywhere in the world, at the speed of the internet, hopefully with a high level of security and data protection,” he added.

Author: Marko Vidrih