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This week the cryptocommunity watched in anticipation as the U.S. Senate Banking Committee held a hearing on cryptocurrencies. The hearing featured testimonies from a number of high-profile crypto personalities, including Circle CEO, Jeremy Allaire. During the spirited debate, some key points did emerge.
Some Senators Get It
One of the main takeaways from the hearing is that some senators actual understand crypto. For example, in his opening statements, Sen. Mike Crapo explained the inevitability of cryptocurrencies. He spoke on the beneficial aspects of blockchain technology and why people lost faith in the traditional banking system after the 2008 banking crisis.
The Senator went as far as saying that the US doesn't have the ability to ban cryptocurrencies due to their global nature. As such, Crapo wants the US to take the reigns of this emerging business sector. Importantly, we explained that the country is behind on the regulatory framework needed to expand and dominate the crypto movement.
Jeremy Allaire Testimony
When it came time for Jeremy Allaire, CEO of Circle and representative of the Blockchain Association trade group to speak, he wasted no time letting lawmakers hear the grievances of the cryptocommunity. He started off by explaining why laws from the last century are inadequate when applied to technologies that didn't exist until recently. His prepared testimony can be found here.
Allaire was an excellent representative for the cryptocommunity for a number of reasons. For one, his company moved from the US last month due to the uncertain regulatory climate. He pointed this out to lawmakers and explained that he isn't alone in this migration.
Jeremy Allaire Knows the Troubles of Subpar Regulatory Framework
Notably, Circle moved to Bermuda last month in order to provide services from their popular Poloniex exchange to a global clientele. Allaire alluded to the mismatch between federal regulations and guidance as one of the main factors deterring further blockchain business development in the US.
Jeremy Allaire on Crypto's Future
Allaire wasn't alone in his quest to help lawmakers better understand the trajectory of the crypto market. Congressional Research Specialist, Rebecca Nelson also spoke on blockchain's effect on global commerce. Nelson took a more balanced approach to the sector. For her part, she described the global legislative climate and how these laws affected the development of crypto in their respective countries.
Not All Senators Get the Point
While most senators realize that you can't fight technology, apparently, some still held on to their anti-crypto sentiments. One such Senator was Catherine Marie Cortez Masto of Nevada. She took a moment to attack the concept of cryptocurrencies serving the unbanked.
A Stark Contrast to Libra Hearings
The hearing comes on the heels of the Facebook Libra hearing in which the social media giant received stark criticism from lawmakers. This time, senators seemed less provoked by images of the social media giant attempting to circumvent regulators.
Allaire Made His Point
Senators from both sides seemed to gain some significant understanding of the core principles of cryptocurrency during this hearing. In total, the hearing lasted an hour and a half, almost half the time the FaceBook Libra hearings took. Despite the positive sentiment of the hearings, it appears that crypto still has some naysayers yet to be converted.