{"id":54362,"date":"2021-12-09T10:38:25","date_gmt":"2021-12-09T08:38:25","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=54362"},"modified":"2025-09-03T20:03:36","modified_gmt":"2025-09-03T17:03:36","slug":"crypto-executives-testify-before-the-us-congress","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/crypto-executives-testify-before-the-us-congress\/","title":{"rendered":"Crypto executives testify before the US Congress"},"content":{"rendered":"<p>On December 8, top executives of the cryptocurrency industry testified before the US House Financial Services Committee. Politicians&#8217; views on the sector were divided, but the witnesses noted a high level of engagement from members of Congress.<\/p>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Crypto CEOs testify before lawmakers on digital assets \u2014 12\/8\/21\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/F_kZELcynKQ?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div>\n<\/figure>\n<p>The hearing&#8217;s agenda on the topic of \u201cDigital assets and the future of finance: understanding the challenges and benefits of financial innovation\u201d centred on questions about bitcoin exchanges, the issuance of stablecoins, regulatory challenges surrounding digital assets, and the policy stance of federal agencies.<\/p>\n<p>At the hearing <a href=\"https:\/\/u1f987.com\/en\/news\/u-s-congress-to-discuss-cryptocurrencies-with-industry-executives\">testified<\/a>: Circle CEO Jeremy Allaire, FTX CEO Sam Bankman-Fried, Bitfury CEO Brian Brooks, Paxos CEO Charles Cascarilla, Stellar Development Foundation CEO Denelle Dixon, and Coinbase Global CFO Alesia Haas.<\/p>\n<p>While past hearings had largely focused on Bitcoin&#8217;s use in criminal activity, this time policymakers asked about the underlying technology and the potential of digital assets.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cWeb 3.0 could expand opportunities for everyone,\u201d said a representative for Anthony Gonzalez.<\/p>\n<\/blockquote>\n<p>He noted that regulators&#8217; inability to reach a consensus on overseeing the crypto markets hampers industry development. Industry representatives agreed with the politician and urged Congress to clarify the powers of agencies such as the <span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> and <span data-descr=\"U.S. Commodity Futures Trading Commission\" class=\"old_tooltip\">CFTC<\/span>, and to allow stablecoin issuers to become part of the existing banking system.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cIf a sizeable number of consumers want to invest in a Bitcoin ETF, why are we prohibiting it?\u201d<\/p>\n<\/blockquote>\n<p>Stahl also addressed Allaire \u2014 and asked CFO Alesia Haas whether Coinbase had tried to learn from the SEC why the agency <a href=\"https:\/\/u1f987.com\/en\/news\/sec-threatens-coinbase-with-lawsuit-over-planned-crypto-savings-accounts\">threatened to sue<\/a> it if it launched crypto-savings accounts.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cWe asked, but we still haven&#8217;t received a clear answer as to why our product cannot be released,\u201d she replied.<\/p>\n<\/blockquote>\n<p>Expressing concerns about mining&#8217;s environmental impact, as well as insufficient ethnic and gender diversity in industry firms, Democratic lawmakers highly valued the potential of cryptocurrencies, calling them a cheaper alternative to the existing banking system.<\/p>\n<p>However some participants expressed more radical views. Representative Brad Sherman accused the industry of a \u201cdisrespectful attitude\u201d toward authority and said the sector enjoys support from influential figures on Wall Street.<\/p>\n<p>Sherman rebuked Coinbase for Haas&#8217;s representation rather than its head Brian Armstrong, and suggested Armstrong would ultimately have to testify, as Meta CEO Mark Zuckerberg did.<\/p>\n<p>The politician also urged regulators to \u201cprotect investors\u201d if Congress cannot pass meaningful legislation in this area.<\/p>\n<p>Bitfury CEO Brian Brooks, who previously headed the <span data-descr=\"Office of the Comptroller of the Currency (OCC)\" class=\"old_tooltip\">OCC<\/span>, urged Congress not to confine the industry to its investment aspect. He stressed that the existing financial system is not without flaws, and that blockchain could fix them.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cShouldn&#8217;t we take this possibility seriously? Open-source algorithms and software that eliminate human error, greed, negligence, fraud and bias from the system could make it better. Even if new risks emerge that must be studied and regulated,\u201d he said.<\/p>\n<\/blockquote>\n<p>Allaire agreed, adding that cryptocurrencies could address many of the problems the Congress has already identified:<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe number of people worldwide without access to banking services testifies to the injustice of the financial system. Cryptocurrencies potentially could really solve this problem.\u201d<\/p>\n<\/blockquote>\n<p>Representative Alexandria Ocasio-Cortez noted that the blockchain architecture proposed by the industry does not resemble a new financial system but rather an \u201cexpansion\u201d of the existing one. She put the question to Jeremy Allaire, who testified after the FTX chief.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cI truly believe we are building a new level of global economic infrastructure,\u201d he replied.<\/p>\n<\/blockquote>\n<p>After the hearings Allaire described the level of political engagement as \u201cvery high\u201d and noted a willingness to engage. He said he was pleased with the hearing, because he saw in Congress a \u201cgenuine desire to consider and address some of the critical questions.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">5\/6 It was also encouraging to see the aligned perspective from many that testified, and a consistent view about the need for risk-appropriate, clear and direct rule-making that considers what is unique about digital assets and stablecoins.<\/p>\n<p>\u2014 Jeremy Allaire (@jerallaire) <a href=\"https:\/\/twitter.com\/jerallaire\/status\/1468707219239845892?ref_src=twsrc%5Etfw\">December 8, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cIn some respects, I think this was a turning point in political engagement around this critical area of economic infrastructure. I am confident we will see more in the future,\u201d he concluded.<\/p>\n<\/blockquote>\n<p>Bankman-Fried also described the hearing as \u201cproductive.\u201d He said he expected to meet with a hostile attitude but instead participated in a useful discussion.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">2) I came in expecting some hostility and grandstanding, but instead found the discussion to be by and large productive and helpful. I\u2019m excited to keep engaging with lawmakers and regulators to refine the regulatory landscape.<\/p>\n<p>For more thoughts: <a href=\"https:\/\/t.co\/6uWCYN7Kbu\">https:\/\/t.co\/6uWCYN7Kbu<\/a><\/p>\n<p>\u2014 SBF (@SBF_FTX) <a href=\"https:\/\/twitter.com\/SBF_FTX\/status\/1468690362030080003?ref_src=twsrc%5Etfw\">December 8, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Lawyer Jake Chervinsky called the hearing the most positive, constructive and bipartisan public event he has seen in Congress. He called the hearing evidence of the effectiveness of industry and community engagement in Washington.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Today\u2019s HFSC hearing was the most positive, constructive, &#038; bipartisan public event on crypto I\u2019ve seen in Congress \u2014 ever. I mean that literally.<\/p>\n<p>It\u2019s a testament to the effectiveness of industry &#038; community engagement in DC in recent months. We\u2019ve made shockingly big progress.<\/p>\n<p>\u2014 Jake Chervinsky (@jchervinsky) <a href=\"https:\/\/twitter.com\/jchervinsky\/status\/1468674110662352904?ref_src=twsrc%5Etfw\">December 8, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>As reported in November, the US Senate <a href=\"https:\/\/u1f987.com\/en\/news\/us-senate-seeks-details-from-stablecoin-issuers-on-how-their-coins-operate\">requested information from stablecoin issuers<\/a> about how they operate.<\/p>\n<p>Read ForkLog&#8217;s bitcoin news on our <a href=\"\/\/telegram.me\/forklog\" target=\"\u201c_blank\u201d\" rel=\"\u201cnofollow\u201d noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On December 8, top executives of the cryptocurrency industry testified before the US House Financial Services Committee. Politicians&#8217; views were divided, but witnesses noted a high level of engagement from lawmakers.<\/p>\n","protected":false},"author":1,"featured_media":54363,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1269,36,1230,26],"class_list":["post-54362","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cryptocurrencies","tag-regulation","tag-us-congress","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"28","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/54362","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=54362"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/54362\/revisions"}],"predecessor-version":[{"id":54364,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/54362\/revisions\/54364"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/54363"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=54362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=54362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=54362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}