Updated: Apr 6
Crypto's $3 trillion industry can't be ignored, but it's not regulated...
And, the fact that:
Facebook Inc., with a firm worldwide reach is moving to FB.O stablecoin,
Several others, like Kickstarter, are moving their crowdfunding platforms to Blockchain,
The Soros family office is trading in Crypto,
Miami, as an independent City government, is bringing all residents in on the crypto craze by sharing crypto profits,
and…, even Visa, Master Card & BofA are positioning themselves in Crypto,
leaves us with the question: "How do we invest prudently in this industry?"
We cannot overlook the fact that Crypto is making an impact across all businesses & markets; so, it's time we adapt. The sooner we utilize digital currency transactions in our businesses, the sooner we can reap the rewards.
Now, the only stumbling block is regulation. We need clarity on this $3 trillion industry; and, as a result, today, executives from six major cryptocurrency companies, including Coinbase and Circle, asked Congress to provide more explicit rules while warning "rigid restrictions might push the industry overseas".
Yes, today's hearing at the House of Representatives Financial Services Committee enabled industry leaders to explain their business to Congressional lawmakers in response to concerns that cryptocurrencies may present systemic risks and hurt investors.
Crypto executives asked for structured legislative solutions that are openly debated with public participation. Alesia Haas, CEO of Coinbase Inc., warned that regulating could prove devastating for the US.
Lawmakers treated the hearing as a fact-finding mission; therefore, it does not seem Congress will be regulating the industry in the near future. But, we must consider the fact that there are significant concerns to be dealt with now, like the ones Democratic Rep. Maxine Waters, who chairs the committee, brought up about proper oversight for Facebook Inc's, FB.O, stablecoin plans considering the company's massive global reach.
Congressmen praised the executives in attendance today for leading the way on what could be a pivotal technology. Rep. Pete Sessions, a Texas Republican, said: "We need to be supportive. I am very impressed. I see a lot of ingenuity and a lot of entrepreneurial spirits".
The fast growth of cryptocurrencies and, in particular, stablecoins, digital assets linked to traditional currencies, has caught the attention of regulators, who fear they could put the entire financial system at risk if not adequately monitored.
Sen. Elizabeth Warren and Securities & Exchange Com. Chair Gary Gensler worries these products will be used to take advantage of unsuspecting consumers.
Last month, an appointed group out of the Treasury recommended stablecoins only be used by regulated banks. The Executives seemed to welcome regulatory clarity to prompt industry expansion; but, they continuously pointed out that overly restrictive rules could prove counterproductive.
"Those who invest in cryptocurrencies usually do it to get rich quick," said Rep. Juan Vargas; "We've seen this before; unfortunately, it led to the financial crisis."