MP Patrick McHenry said: “We don’t need the lawmaker’s rude reactions to regulate for fear of the unknown rather than trying to understand.

The House of Representatives Financial Services Committee has heard from a number of executives from large crypto firms in the United States, some of whom appear to be a united front calling on lawmakers to put in place a clear regulatory framework for cryptocurrencies.

Speech at the hearing on Wednesday Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States Circle CEO Jeremy Allaire, FTX CEO Sam Bankman-Fried, Bitfury CEO Brian Brooks, Paxos CEO Chad Cascarilla, Stellar Development Fund CEO Denelle Dixon and Alesia Haas, Director Operator of Coinbase Inc. and Coinbase Global CFO, spoke to US lawmakers about the Challenges your company faces as a stablecoin issuer and digital asset exchange.

https://www.youtube.com/checkout?v=4oOTvtupND8

In a written statement delivered prior to the hearing, Allaire said Circle supported Congress’s efforts to “nationalize licensing and federal oversight” of stablecoin issuers because many are now “too old to ignore”. Cascarilla seems to repeat that sentiment, describing the US financial system as “insufficient” to handle the emerging digital economy, but blockchain technology could offer a possible solution:

“A blockchain-based financial architecture that can process transactions on the same day, minimizes counterparty risk and eliminates the need for an expensive central clearing house,” said Paxos CEO. “This will enable market participants and regulators to monitor and correct margin and runoff deficits in real time. We agree that shortening the trade settlement cycle should be a priority for the SEC and we are working hard to make it happen. “

Brooks added that there are already examples of companies entering the digital asset space looking for a more regulation-friendly environment in other countries, such as Fidelity, which is launching an exchange-traded fund, the Bitcoin (BTC) exchange in Canada without US stock exchanges. Approval of the committee a.

“There’s a reason crypto talent is no longer concentrated in Silicon Valley, the birthplace of the original commercial World Wide Web,” said Brooks. “Sure, some talent just moved from Silicon Valley to Miami – but a surprising number of talented founders have moved to Portugal, Dubai, Abu Dhabi, Singapore and the rest of the world. Other jurisdictions are not regulated, but have a more positive attitude.” towards innovation and growth. ”

Related: US Congressman Calls for Congressional Action On Crypto As Government Avoids Shutdown

Before a panel of crypto executives, Congressman Patrick McHenry argued that technology in the crypto space was “regulated” but acknowledged that any existing framework could be “difficult”, understandable and “out of date”. According to the North Carolina representative, a lack of understanding among his committee members could risk overregulation of crypto and blockchain:

“We need sensible traffic rules, we know that. We don’t need knee-jerk reactions from the legislature to adjust for fear of the unknown instead of trying to understand. And fear of the unknown in adapting to understanding will only limit American ingenuity and put us at a competitive disadvantage. “

The House of Representatives hearing is still ongoing at the time of publication and seeks to discuss four key aspects of the crypto space: exchanges, stablecoin offerings, regulatory concerns over financial assets, digital assets, and government regulatory responses. Legislators are also likely to discuss decentralized finance, which has the potential to “restore and replace the provision of conventional financial services such as lending, securities trading, insurance and other financial services”.