Tech trade group Chamber of Progress has asked members of the US Senate and House of Representatives for regulatory clarity in the cryptocurrency space in an effort to prevent companies from leaving the country.
In a letter to eight House and Senate committee chairs, House of Representatives Finance Policy Director Janay Eyo urged Congress to consider moving forward with a “substantive legislation that guarantees the future of our nation’s cryptocurrency industry”, citing concern over jobs and the country’s position as a leader in global finance. According to the trade group, Government leaders, including those at the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal Reserve, and the Biden administration, have called for Congress to lead in establishing a regulatory framework for digital assets.
“Without action from Congress, the lack of clear rules and regulations has contributed to the current instability in the cryptocurrency markets,” the House of Progress said. “Some of the companies that have failed took advantage of the lack of clear regulations in the market. Industry leaders have warned that smaller exchanges offering generous margin loans are quietly becoming insolvent.”
The group said:
“It is imperative that Congress act to ensure investor protection by providing rules to follow, which in turn would help weed out bad actors in the industry.”
For the crypto industry, the combination of an unclear regulatory environment and a market downturn have resulted in layoffs, bankruptcies, and even the possibility of moving overseas. To save US jobs, Congress needs to act.
Read our full letter here: https://t.co/FUaS28KJNf pic.twitter.com/tXzJMwZrpy
— Chamber of Progress (@ProgressChamber) July 20, 2022
According to the Chamber of Progress, the lack of regulatory clarity in the United States could cause companies to “look abroad for greener pastures,” potentially threatening the country’s interests by forcing many high-paying, remote jobs that largely survived the pandemic. Cryptocurrency companies like Ripple have considered moving their headquarters away from the United States, and others have expanded their offerings to regions like the Middle East.
“The rise of countries developing cryptocurrency regulatory policy should motivate the United States to move quickly to review relevant legislative proposals introduced in this Congress,” the group said. “It’s time for the cryptocurrency policy debate to move from ‘do we need regulation’ to ‘what are the impacts of specific regulatory proposals?'”
Unlike the United States, the European Union passed legislation aimed at harmonizing cryptocurrency regulations among EU member states, called Markets in Crypto-Assets Framework, or MiCA. On Wednesday, the UK government also introduced a Financial Markets and Services Bill that includes regulation of stablecoins.
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