Industry Executives Head to Congress to Clarify Crypto

Congresswoman Maxine Waters, Chairwoman of the House Committee on Financial Services, announced that the hearing will take place on Dec. 8.

Titled “Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States,” the assembly aims to demystify some of the misconceptions lawmakers have regarding the crypto industry and its underlying technology.

It will be attended by a number of prominent crypto industry leaders, including Circle CEO Jeremy Allaire, who welcomes regulation, Sam Bankman-Fried from FTX, Bitfury boss Brian Brooks, Paxos CEO Chad Cascarilla, Denelle Dixon from the Stellar Development Foundation, and Alesia Haas, CFO at Coinbase.

Coinbase Global CEO, Brian Armstrong, is notably absent as the company was recently embroiled in a regulatory battle over its crypto lending services. There are also no representatives from Tether, the world’s most popular stablecoin, which is also in the crosshairs for policymakers.

Clarifying Crypto

Congress has taken a deeper interest in the crypto asset industry as it now cannot be ignored after surpassing $3 trillion market capitalization last month.

On Dec. 2, Chad Cascarilla spoke on CNBC’s “Squawk on the Street” to elaborate on what the hearing may contain. He said that the first angle is how is our financial future going to be different and how this technology is changing lives. He then went on to speak about the national currency:

“Also it is going to be about the dollar, the dollar is changing and the type of product that the dollar represents is shifting. How people use it, what their daily lives look like and why its important for the U.S. to maintain its financial primacy in order to be able to adapt to the changing world.”

Crypto executives will testify before the House Financial Services Committee next week. @PaxosGlobal CEO & witness Chad Cascarilla joined us this morning to discuss the regulation he’d like to see in the space. #Bitcoin $ETH $USDP@CNBC pic.twitter.com/5YQqKkfX7N

— Squawk on the Street (@SquawkStreet) December 2, 2021

Eyes on Stablecoins

Congress has already held several meetings to address the crypto industry. In late November, head of the U.S. Senate Banking Committee Sherrod Brown sent a letter to stablecoin CEOs demanding more information on their issuance and redeeming processes.

Stablecoins have become a growing concern for U.S. regulators since their reserves and backing have yet to be officially audited. In early November, the Treasury Department recommended that stablecoins were subject to “appropriate federal oversight.”

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