Interpreting the U.S. House of Representatives Crypto Hearing: Behavior Change, Legal, Future Hope for Web3.0

In the past, the United States House of Representatives has hosted several cryptocurrency conferences, but lawmakers have criticized Zuckerberg and other business and financial experts. Regarding the 'style variation' of the case, most lawmakers have not only expressed interest in the cryptocurrency industry, but have also shown a willingness to regulate and support industry doctors.

At 11:00 p.m. Beijing time on December 8, Maxine Waters, Chairman of the United States Financial Services Commission, held a conference titled "The Future of Crypto Assets and Finance: Understanding the Complexities and Benefits of the American financial transformation ”. to listen,

Members of Congress seek to better understand crypto assets through discussions and debates on regulatory compliance. Discussion topics mainly focus on Governance, Coin Stability, Trader Protection, Web3.0, and other trading issues.

During the nearly five-hour hearing, executives from six major cryptocurrency companies appeared to explain the future of crypto technology to everyone. Circle CEO Jeremy Allaire, FTX CEO Sam Bankman-Fried, Bitfury CEO Brian Brooks, Paxos CEO Chad Cascarilla, Stellar CEO Denel Dixon, Coinbase CEO Alessia Haas.

In the past, the United States House of Representatives has hosted several cryptocurrency conferences, but lawmakers have criticized Zuckerberg and other business and financial experts. Regarding the "style variation" of this hearing, most lawmakers not only expressed interest in the cryptocurrency industry, but also showed interest in its regulation and promotion of the medical industry.

In particular, Congressman Patrick McHenry said during the hearing that Web 3.0 is the future of the Internet, that innovation should not be affected by over-regulation, and that the United States should have more. competition on Web 3.0.

For this reason, the audience was considered to be one of the most dynamic, creative, and bipartisan crypto audiences in history.

Politics

During the hearing, Congressman Ted Budd said he was concerned the "state senator" has set too many rules for cryptocurrencies.

Republican Congressman Patrick McHenry noted that while technology in encryption is regulated, existing regulatory processes are clunky, may not be updated, and appear to be regulated.

Brian Brooks, CEO of cryptocurrency miner Bitfury, added during the hearing that "there's a reason the talent in the cryptocurrency industry no longer exists in Silicon Valley." Countries and regions outside of the United States For example, Fidelity launched Bitcoin Spot ETF in Canada.

Congressman Jake Auchincloss said "rule of law governance" is unfair for cryptocurrency companies that have to move from multiple regulators. He is prepared to work with Republicans and Democrats to resolve these issues. According to him, collaboration between business leaders and autonomous organizations can solve problems such as storage and fixed financial models that are profitable for the market.

Bitfury CEOs Brian Brooks and Jake Auchinclos share similar thoughts. Brian Brooks notes that what makes the United States special is that their corporate governance is decentralized and that the United States will use existing regulators to enforce current cryptocurrency rules rather than allowing an administrator to oversee the entire company.

Matt Home, chief executive of Nyca Partners and former director of the New York City Financial Services Department, said the cryptocurrency industry is now under control.

Introduction to Web3.0

“Cryptocurrency could have a bigger impact on the Internet in the future. How can we ensure that the Web 3.0 revolution takes place in the United States? Republican Congressman Patrick McHenry told the hearing the need was legal and it was not. Ignoring fear of the unknown and worrying about the unknown only stifles America's ability to innovate and make it a competitive advantage.

“Right now you can't have the Internet (Google and other companies), but you can have Ethereum. Web3.0 allows users to own more than the Internet. There is no freedom, ”said Brian Brooks. Not only the new risks induced by blockchain technology policies, but also solutions through decentralization must be considered.

“Web3.0 allows users to own the Internet rather than the Internet. Brian Brooks explains that Web1.0 is read-only and Web2.0 is write and receive content as well as content authoring. . Web3.0 contains Internet content and can grant users the rights they have.

According to Tomicah Tilleman, head of law enforcement at a16z, this is the first time that a president has received a panel hearing to announce that Web3.0 is the future of the internet. . This is a historic change in the national controversy over decentralized technology. The team recognizes that the Web3.0 platform can resolve a wide range of issues, including returns and costs.

Tomicah Tilleman said the statements made by all of the hearing participants were reasonable and appropriate.

on current trade issues

During the hearing, lawmakers also questioned the major changes in cryptocurrency prices, the lack of data sharing involved, and the excessive bubble.

Bitfury CEO Brian Brooks pointed out that while the search for asset value is better, there is a greater need for the search for value and income because the United States has not done enough in the cryptocurrency space.

During the hearing, Todd Phillips, director of finance at the Center for American Progress, said Howey's test revealed that something is a contract, deal or plan. , a person who invests his money in a company, and if there is an income, a manager or a CEO It is a kind of security if it is required by the efforts of all together. Basically, if a person is funded by an ad policy to write a DeFi app or something like that, that is a type of security and is regulated by the SEC. This experiment has been going on for almost 80 years, and all attempts to prove this fact are wrong.

When asked about Bitcoin's efforts, CEO Rashida Tlaib pointed out that the cryptocurrency industry "is now using enough energy to support small countries."

Bitcoin mining is rumored to be more energy efficient than Argentina, Apple, Facebook and Microsoft combined.

In this regard, Stellar CEO Denelle Dixon responded that cryptocurrencies have a variety of approval procedures that would use less energy or improve the environment. Dixon points out that Marathon Digital's power plants in Montana and Greenidge Generation's New York mine are examples of power plants that have been shut down and reused for encryption. “We all need to focus on reducing energy use,” Dixon said.

Throughout the hearing, only Brad Sherman, a member of the United States House Financial Services Committee, expressed his dissatisfaction with the cryptocurrency industry. the two parts.

“Our relationship with Wall Street and Washington has spent millions and worked hard to get millions. These include Goldman Sachs, BlackRock, Visa, Citadel, Musk and Zuckerberg. Needless to say, CEOs are in front of us today. hui. If you want to know where the power is, Zuckerberg has to stand up and attend the hearing. Brad Sherman laughed at him.

He then reiterated that the biggest threat to cryptocurrencies was the cryptocurrency itself, as Bitcoin could be traded through Ethereum, but fiat currencies could not.

Additionally, speaking on coin stability, Senator Sean Casten asked Circle CEO Jeremy Allaire if he would support the endorsement of the Stablecoins advisory board.

"I support a lot of ideas, but I can't say in general. I think there are a lot of issues with the report." Jérémy Allaire answers. The first question should clarify what “what format” a federally regulated financial advisor would use, among other terms.

During the crypto hearing, Congressman Bill Foster asked if there was any evidence against "anonymous control" of digital currency. This means that any violation can be removed from surveillance. The anonymity of criminal funds makes monitoring possible. The Witnesses do not object to these questions.