The US Senate just held a non-conclusive hearing on the future of legislation on crypto. The main takeaways are that politicians are aware that cryptocurrencies cannot be stopped and are quite worried about Facebook Libra.
The market reacted positively to the “unstoppability” of crypto, yet trends are still quite uncertain.
Facebook admits it might scrap the Libra project altogether, while members of the Calibra project (which would control Libra) keep distancing themselves from Zuckerberg’s crypto. Tether, a stablecoin, finds use in China and Russia grey markets.
Crypto is becoming a primary vehicle to avoid US sanctions on countries like Russia, China, Iran, and Venezuela.
Switzerland, Britain, and Germany move full ahead on crypto and blockchain development.
Blockchain in Government
Yesterday, the United States Senate held a hearing on the viability of existing policies and regulations governing the U.S. crypto industry. The matter is entrusted to the Committee on Banking, Housing, and Urban Affairs. One of the main subjects was, of course, Facebook Libra. One of the key witnesses was Circle CEO, Jeremy Allaire. He pointed to the fundamental mismatch between the current government policies and the nature of cryptocurrencies in general. The Securities and Exchange Commission (SEC) enforces securities laws to determine whether a digital asset is a security or not. The SEC follows a very narrow definition to establish it. However, with thousands of crypto assets in existence, it quite difficult to segregate them into just two categories. New definitions for cryptocurrencies are necessary. Other major markets like Singapore and Bermuda are adopting new regulatory frameworks, followed by Singapore, Switzerland, and even France. The Libra Association is in Switzerland, an example of U.S. companies leaving the domestic market in favor of locations more favorable to blockchain businesses.
Senator Michael Crapo, head of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, admits nobody can stop cryptocurrencies even if they wanted.
US Senator Plots How Facebook’s Crypto Project Libra Could Spark a Financial Crisis by Taking Over ‘Critical Public Service’The Daily Hodl
Senator Sherrod Brown yesterday compared Facebook’s Libra to the subprime mortgage loans that triggered the global financial crisis of 2008. The comment happened during a U.S. Senate hearing on cryptocurrencies, entitled “Examining Regulatory Frameworks for Digital Currencies and Blockchain,”