Former US Congressman: The encryption industry is the next source of economic innovation in the United States

Harold Ford, a former US Democratic congressman and former member of the House Financial Services Committee, wrote in the CNBC that the encryption industry and dozens of digital asset-related applications are the next source of economic innovation in the United States.

In the article, he also said that what is really needed now is to define a regulatory framework at the federal level, so that developers can be more confident to move forward. He believes that the US Securities and Exchange Commission (SEC) now has the opportunity to take the lead in regulating the industry's cooperation, rather than standing on the opposite side. The SEC should develop forward-looking regulations to promote innovation and work closely with Congress and industry stakeholders.

When talking about the July hearing on Facebook's Libra and cryptocurrency regulation, he thought that some people in Congress were too harsh in attacking the entire industry. Regarding the regulation of cryptocurrencies, he believes that the current situation is a patchwork of several federal agencies, including the Commodity Futures Trading Commission (CFTC), the Internal Revenue Service (IRS) and the Financial Crimes Enforcement Network (FinCEN), and the US Securities and Exchange Commission ( SEC), etc., but lacks an overall regulatory framework.

In this case, the SEC received the most attention. The agency's attempt to unilaterally apply securities laws to this new area of ​​innovation has made investment in the United States more uncertain and more expensive to develop. Although the SEC issued the “Digital Asset Investment Contract Analysis Framework” in April, it claims that this non-binding guide is only on behalf of employees, not the rules, regulations or statements of the SEC. This in turn brings more uncertainty.

He believes that the SEC is likely to be stifling innovation. For decades, US companies have been working hard to develop their products to fully comply with evolving rules. This non-binding guidance will only increase the level of confusion, as it can indicate that the SEC is supervising without a clear direction. This lack of transparency has in fact caused damage to American innovation. A legal expert said that "the position of the SEC will lead to the transfer of small companies outside the United States."

He concluded by stating that the SEC now has the opportunity to take the lead in regulating the industry's cooperation, rather than standing on its opposite. Otherwise, the United States will lag behind other countries in attracting encryption-related services.

Image source: pixabay

By Xiu MU

This article comes from the push bitpush.news, reproduced need to indicate the source.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

US SEC postpones ruling on another Bitcoin ETF proposal, how is this proposal different than in the past?

According to Cointelegraph reported on December 23, the US Securities and Exchange Commission (SEC) has postponed a d...

Bitcoin

Bitcoin ETF Watchers Engage in Frenzied Anticipation for Some Sort of Epic Announcement on Freaky Friday

Fashion enthusiasts are buzzing with anticipation for a potential announcement about the potential launch of a Bitcoi...

Blockchain

Hong Kong's HashKey is Leaving its Mark on Retail with a Sleek Trading App, and Brace Yourselves for the Arrival of the HSK Token!

HashKey, the Hong Kong-based cryptocurrency exchange, has officially launched its trading app, marking its venture in...

Blockchain

Hong Kong's new anti-money laundering regulations take effect, and the compliance requirements are organized comprehensively.

On May 23, 2023, the Securities and Futures Commission (SFC) of Hong Kong issued a "Consultation Conclusions on Propo...

Policy

SEC Chairman: The future of the Bitcoin ETF "has a long way to go"

The market has taken steps to address the US Securities and Exchange Commission's (SEC) concerns about the appro...

Market

Why did the SEC reject the approval of a bitcoin ETF for spot trading? Will BlackRock's attempt be successful this time?

Asset management giant BlackRock will submit an application for a Bitcoin ETF (Exchange-Traded Fund) and use Coinbase...