The US Congress Considered the Issue of Cryptocurrencies: Results
The House of Representatives Committee on Financial Services has concluded a hearing on the issues related to cryptocurrencies and other digital assets.
As reported by Cointelegraph, the theme for the Congress was “Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States.”
Many industry experts noted that this time the lawmakers asked deliberate questions and otherwise acted as if their goal was to understand the new industry rather than acting on preconceived notions. And the dialogue between the digital asset industry and lawmakers the experts ultimately called constructive.
The hearings, which were invited by several top directors in the cryptocurrency space, focused on the role of cryptocurrency exchanges, the growth of the stablecoin sector, and general questions about the comprehensive regulation of digital assets.
Among the main topics discussed in Congress was also the issue of cryptocurrency decentralization of the digital ecosystem. Some of the meeting participants were worried about the seizure of power by the tech giants of the Web 2.0 era, others were looking for a favourable political angle, and some feared excessive regulatory oversight.
The relationship between the global role of the US dollar and the growing demand for stablecoins has also received a lot of attention.
Analysts at the Bank for International Settlements (BIS), in their turn, expressed concerns about some of the structural aspects of DeFi, for example, liquidity mismatch and lack of shock absorbers such as banks. The report’s authors argue that the protocols that govern DeFi’s operations carry risks of centralization, which could lead to a concentration of power in these systems in the hands of a few. These statements will surely surprise many, especially those who are familiar with the DeFi space.