The US Senate hearing, the blockchain technology is definitely the future, and the members are afraid to lag behind China.

"I do think blockchain technology is the future, and it has great potential. We should pay attention to it. If the United States does not lead, then China will contend." At the much-watched US Senate cryptocurrency hearing, Cortex Masto Members said.

On July 30th, Beijing time, from 22:00 to 23:30, the US Senate Banking Committee held a hearing on the regulation of cryptocurrency and blockchain industry.

The theme of the hearing was Review of the Regulatory Framework for Digital Currency and Blockchain. Circle CEO Jeremy Allaire, University of California Irving Law School Professor Mehrsa Baradaran and Congressional Research Services Specialist Rebecca Nelson attended the meeting as a hearing.

Babbitt Information conducted a full live video of this hearing, and the interaction is very exciting!

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The following is the summary of this hearing:

Mike Crapo, chairman of the Senate Banking Committee, mentioned in the opening speech at the hearing:

"This hearing hopes to understand the developments in the digital currency market over the past decade, the regulation of cryptocurrencies and blockchains in other countries, the problems and obstacles."

(Photo: Mike Crapo, Chairman of the Senate Banking Committee)

Then, Senator Sherrod Brown mentioned Facebook in his speech, which laid the groundwork for the Libra topic:

“Some infrastructures will perform better as public infrastructure, and we should not let banks and big companies control it.”

Proposed to update the regulatory framework, classifying assets as a top priority

Since then, Circle CEO Jeremy Allaire, University of California Irving Law School Professor Mehrsa Baradaran and Congressional Research Services Specialist Rebecca Nelson have published testimonies they have prepared in advance.

Allaire complained in his testimony about the problems with existing regulatory laws, which mentioned:

"The United States should not use the laws of the past century to regulate 21st century technology."

(Photo: Circle CEO Jeremy Allaire)

Allaire is worried that more startups will choose to go out because of the uncertainty of US policy. When asked by a Member about why Circle's Poloniex exchange business would be transferred to Bermuda, Allaire replied:

"The definition given by the SEC is too narrow. It is easy to identify crypto assets as securities, but in fact they may be commodities or utility tokens. However, the encryption industry certainly needs to be supervised."

Since then, some Members have mentioned the phenomenon of cryptocurrency companies leaving the US market. They asked whether these companies want to evade supervision. Rebecca Nelson, a Congressional research services expert, explained:

“Many places use clear regulation to attract cryptocurrencies, and they provide more certainty in regulation, such as AML and KYC policies. For example, Switzerland will regulate securities for ICO.”

(Photo: Congressional Research Services Specialist Rebecca Nelson)

In addition, Allaire also highlighted that it is crucial to distinguish between different cryptocurrencies. At this stage, many digital assets are not applicable to the current regulatory framework, and the United States needs to redefine digital assets.

Facebook Libra is once again a topic of discussion. The surprise is that this time it is very harmonious.

As many people have predicted in advance, at this hearing, the members of the parliament are still very concerned about Libra's topic, but it seems that because there is no Facebook person on the scene, the dialogue between the members and the hearings looks very harmonious, which is different from the previous one. The Libra hearing formed a stark contrast.

In addition to discussing how Libra anchors a basket of currencies, both sides seem to have a negative view of Libra, Professor Mehrsa Baradaran said:

"The blockchain technology is worth encouraging, but the current problem facing the financial system is not technology, but policy." She hopes that the Fed will upgrade its system and create a low-paying payment system so that all Americans can enjoy the foundation. Financial services, and most cryptocurrencies, including Bitcoin, appear to be a substitute for the dollar.

(Photo: Mehrsa Baradaran, Professor, University of California, Irvine Law School)

Blockchain technology is affirmed by lawmakers, but risks still need to be considered

During the hearing, Allaire mentioned:

“In the future, a decentralized, self-sovereign, secure identity and privacy protocol will be built on the public blockchain that will enable people to use digital services more securely across the globe to ensure compliance with KYC / AML regulations. Rules that fundamentally improve privacy and reduce data leakage, while also combating financial crimes more effectively than traditional financial systems… Many entrepreneurs in the circle are not trying to get rich overnight, but to create a whole new infrastructure."

Mr. Cortex Masto also expressed her views, she said:

"I do believe that blockchain technology is the future and it has great potential. We should pay attention to it. If the United States does not lead, then China will compete."

In response, Professor Baradaran reminded:

“Regulators should make the worst plans and should think carefully, rather than accept innovation in their entirety.”

Chairman Mike Crapo concluded at the end:

“I hope that the United States will maintain its leading position in this innovative technology field. I believe that it does have some incredible potential, but at the same time cannot ignore the risks brought about by innovation.”

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