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2021-12-09

Crypto regulations in the US - directors reaction

The House Committee on Financial Services heard from several CEOs of major crypto companies in the United States, some of whom seemed to present a unified front, urging lawmakers to provide a clear regulatory framework for cryptocurrencies.

Speaking at a Wednesday hearing titled "Digital assets and the future of finance: understanding the challenges and benefits of financial innovation in the United States," Circle CEO Jeremy Allaire, FTX CEO Sam Bankman-Fried, Bitfury CEO Brian Brooks, Paxos CEO Chad Cascarilla , Stellar Development Foundation CEO Denelle Dixon and Alesia Haas, Coinbase CFO and CEO of its U.S. subsidiary, told U.S. lawmakers about the challenges their companies have faced as stablecoin issuers and exchanges for digital assets.

In a written statement issued before the hearing, Allaire said Circle supports Congress' efforts for "national licensing and federal oversight" of stablecoin issuers, given that many were now "too big to ignore." Cascarilla seemed to echo that sentiment, describing the U.S. financial system as "inadequate" to handle the growing digital economy, but blockchain technology may offer a possible solution:

"A blockchain-based financial architecture can settle transactions on the same day, mitigate counterparty risk and eliminate a costly central clearing house," the Paxos CEO said. "This would enable market participants and regulators to monitor and correct settlement and margin shortfalls in real time. We agree that shortening the trade settlement cycle should be a high priority for the SEC and we are working aggressively to make this possible."