House committee reviews cryptocurrency risks and regulations at hearing

U.S. House of Representatives Financial Services Committee hold On Wednesday, a hearing will be held for a panel of legislators and witnesses to discuss cryptocurrency regulation in the United States.

The Monitoring and Investigation Subcommittee invited expert witnesses to testify in Congress on the risks and opportunities of blockchain technology.

Representative Brad Sherman (D-MN), a senior member of the House Financial Services Committee, is not keen on the idea of ​​investing in cryptocurrencies to save for retirement:

“Cryptocurrencies are very volatile, so if a person makes $1 million and retires at the age of 45, and nine of them lose $100,000-Coinbase makes money, and a millionaire says on TV how great it is , And the other nine do not retire with dignity, but are eligible for Medicaid.”

He also joked that the California lottery would make a better “bet” than the blockchain:

“Cryptocurrency is something you can bet on, but if people want to allow animal spirits to take risks, I hope they invest in the stock market to support the construction of American companies, or invest in the California lottery to support schools in my state.”

But another senior member of the committee, Rep. Tom Emmer (R-MN), is more concerned that regulatory intervention is preventing Americans from fully benefiting from crypto entrepreneurship:

“In the past few years, I have been fortunate enough to meet many great crypto and blockchain innovators. One thing we have in common in our discussions is that they really want to develop their crypto and blockchain ideas here in the United States. But they will not, because of the ongoing uncertainty in crypto regulation.”

The painful lessons learned from the 2008 financial crisis seem to be particularly prominent in the speeches of witnesses and members of Congress. The real estate subprime mortgage crisis that year quickly spread to the neighboring financial sector.

When it appeared, a large number of innovative-and clumsy-new financial instruments Annihilate A large number of investors have plunged the entire US economy into recession.

A large amount of leverage has exacerbated the structural instability and excessive excitement of the uncontrolled growth of new securities derivatives during this period.

In recent years, new companies and technologies that support and expand the capabilities, use, exchange, and “holding” of cryptocurrencies, as well as their blockchains, have proliferated rapidly. Some legislators and regulators worry that this is like a repeat of 2008.

Efforts to regulate blockchain technology and reduce the risks involved in trading it as a security is a confusing piece of work because Lawmakers scrambled Learn about new technologies and the industries that build them.

Not all federal lawmakers are cautious about cryptocurrencies. Some people even recognize them.In a recent CNBC interview, US Senator Cynthia Loomis (R-WY) said that she Want to see bitcoin As a normal part of a diversified retirement investment portfolio to hedge against inflation.Earlier this month, the National Republican Congressional Committee Start accepting encryption Donate to campaign funds.