Calls for tougher regulations around cryptocurrencies and digital assets are likely to grow stronger after the FTX bankruptcy, something former US presidential candidate Andrew Yang said is not conducive for the United States to do. United a hotbed of blockchain innovation.
Speaking at the Texas Blockchain Summit, held in Austin on November 18, Yang acknowledged that lbankruptcy of FTX and sister company Alameda Research it would make it more difficult to pass common-sense cryptocurrency regulation any time soon.
“I’ve always been in the camp that some smart regulation is a good thing. I think it would help the industry mature and make it more mainstream. But unfortunately, we’ve lost a rhythm, an important rhythm,” he said, referring to the collective failures of FTX, FTX US and Alameda Research.
“Because of FTX, because of the issues, because of the headlines, and because of the people who got hurt, there’s going to be an appetite for regulation that, in my opinion, might not hit the mark,” he said. “Because you want to be able to balance real concerns with the need to keep the United States the home of innovation and development of these tools.”
Yang acknowledged that the road to regulatory clarity for digital assets is more difficult due to the hyperpoliticization of the two-party system. Therefore, the FTX fiasco will only embolden the biggest opponents of cryptocurrencies to try to crush the industry. Yang said he is working with the Bipartisan Policy Center, a Washington-based think tank, to educate congressmen on blockchain technology and its value proposition:
“We work with the Bipartisan Policy Center to liaise with members of Congress or their offices or their policy teams and just educate them on what these tools are and what they can do and the problems they can solve and why their constituents really care.” they care about and value them. We’re working with the American Conference of Mayors to get a number of mayors to stand up and say, look, blockchain is a good thing.”
The widening political gulf between Democrats and Republicans has long troubled Yang, and he told Cointelegraph in May that the midterm elections in the United States further demonstrated the politicization of cryptocurrencies.
Crypto regulation is now being discussed by the White House. https://t.co/bidpXgunJt
— Cointelegraph (@Cointelegraph) November 11, 2022
The White House is debating the regulation of cryptocurrencies.
The need to regulate cryptocurrencies appears to have intensified in the past week, as lawmakers continue to dissect the fallout from FTX. On November 10, White House press secretary Karine Jean-Pierre said the Biden administration would “closely monitor” developments in the sector.
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