Just as US lawmakers racked their brains about how to deal with Facebook's Libra, they were forced to face another bitcoin, the digital currency they had been trying to avoid. Unfortunately, the longer the lawmakers wait, the more cryptocurrency innovations are moved to other places, and the more the US is left behind. Even Facebook chose Switzerland for Libra.
“Thanks to the chairman @RepMaxineWaters, senior member @Patrick McHenry, and other members of the House Financial Services Committee today spent so much time discussing Libra. We will take the time to do this. – Facebook Calibra head David Marcus (@davidmarcus) July 17, 2019"
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Brian Kelly, the cryptocurrency fund manager, is worried that it may be too late. He pointed out on CNBC that while traveling around the world, he could not help but notice that "other countries are far ahead of the United States." He says:
"The United States may have lost this game… This makes me very worried. Asia is eating into the American lunch. The United States is the financial center. We should take the lead in this regard."
He may be right. Although Libra’s hearing forced Congress to face the “cryptocurrency” issue, policymakers apparently did not change their old market strategies. How do they plan to establish a regulatory framework for the industry? Of course, by establishing more committees and working groups.
“The Bitcoin ecosystem will inevitably continue to grow and contribute to the economy. The question is: Where?
'Inconsistent treatment makes it difficult for companies to decide how to operate within the existing regulatory framework in the United States. ——@Melt_Dem'”
Encryption committee carries heavy responsibility
Melin Demirors, CoinShares' chief strategy officer, testified today at the US House Financial Services Committee, where she personally helped legislators distinguish Facebook's cryptocurrency and bitcoin. She told CNBC:
"What you see in the House of Representatives today is… The legislators are trying to understand what Libra is? No one really understands. Libra wants to be a cryptocurrency. This is the style of Facebook."
Demirors pointed out that "cryptocurrency will not disappear", pointing out that the total market value of the encryption market is $266 billion. Demirors describes an environment in which parliamentarians are prepared to provide a degree of regulatory transparency to the market. She quickly separated the cryptocurrency from Libra, essentially putting them in two different buckets.
As for regulation, Demirol seems to be encouraged.
“Members are very clear that the United States needs to remain competitive and the clarity of regulation is very important. I think it is too early to say whether it will implement new regulations. I do think that we will set up a committee to focus on cryptocurrencies. The problem may be to set up a subcommittee to focus on Libra's problems."
If this is the case, then why should Washington, DC continue to follow the old path of the Commission? This seems to be the answer to anything they want to gamble – to form a new team, but so far has not achieved much. But the good news is that Bitcoin is now known all over the world. What will happen next, at least in terms of the role that the US will play in the use of Bitcoin, will lay the groundwork for the coming decades.