For the leader attending the crypto meeting, what issues were discussed during the meeting?

Yesterday, Home Finance Group President Maxine Waters chaired a panel discussion titled “The Future of Resources and Finances: Understanding the Problems and Benefits of the US Financial Transaction”. Deepen your understanding of crypto assets and start discussing regulatory fees for the market. During the nearly five-hour hearing, executives from six major cryptocurrency companies appeared to be explaining the future of crypto technology to everyone.

Many in the cryptocurrency community are shocked and delighted that the harassment of lawmakers over cryptocurrency assets has decreased significantly compared to the past.

The management is as follows:

- Jeremy Allaire, CEO of Circle. The cycle was reported by USDC, the second most popular stable currency in the world.

- Sam Bankman-Fried (SBF), CEO of FTX. FTX is the 3rd largest crypto exchange in the world and the 6th largest crypto derivatives exchange.

-Brian Brooks, CEO of blockchain technology and mining company Bitfury Group, is a former US venture capitalist and former CEO of Binance USA.

-Charles Cascarilla, CEO of Paxos, a blockchain services company. Paxos was the first U.S. company licensed and regulated to provide crypto products and services and announced a stable PAX regulator.

-Denelle Dixon (Denelle Dixon), PDG de la Stellar Development Foundation.

-Alesia Haas, CFO of Coinbase Inc., America's largest cryptocurrency exchange.

of the law

At the heart of the regulatory issue are also stability coins and cryptocurrency exchanges. “There is currently no central regulator in the entire cryptocurrency industry,” said Waters, chairman of the Financial Services Commission.

stability piece

In particular, the management of stable coins is fast. Senator Warren Davidson called the stable parts "at least" because they are similar to the bank's existing rules. "The current surveillance is inconsistent and divided, and some stable coins are not under surveillance," he said.

Fixed currencies are a crypto asset that is pegged to the US dollar and gold, and investors and businesses prefer securities. There are over $ 150 billion worth of stationary coins in circulation today.

The Circle and Paxos companies participating in the hearing shared the two largest gains in the United States. Congressman Nydia Velázquez demanded that all fixed insurance policies be identified before they are backed by the federal model. Whether it's cash or cash, the two CEOs agree.

Recently, the board of directors issued a statement on the issuance of fixed coins, asking to ban fixed banks for banks in need of insurance. At the same time, the chairman of the United States Securities and Exchange Commission (SEC), Gary Gensler (Gary Gensler), has always believed that a stable coin is at the discretion of the SEC, as most of the assets are immediately secure.

In this regard, Cascarilla de Paxos believes that "the solution is not to mislead the operation of cryptographic assets in this management designed for traditional financial instruments".

Cascarilla is also helping lawmakers cut costs by allowing crypto companies to go directly to the Federal Reserve and cut back on intermediary financial services, like the Bank of England. allows non-bank payment institutions to directly access payment processes for wider use. Knowledge of the crypto industry.

Brooks of the Bitfury Group, who also served as a trustee of former President Trump, questioned the integrity of financial stability.

“Only banks can provide stable money, but cannot allow larger securities firms to invest in the bank. Is it the same job? The SEC acknowledges that some crypto assets are unregistered, but are considered securities in a secure state. We do not allow you to do business with. What is a business? "

Additionally, Streams are required to comply with the Federal Reserve Insurance Fund (FDIC) ruling if they have securities traded and are regulated by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for cryptocurrencies. securities.

"Crypto technology only improves the performance of financial services," he added.

Coinbase's Haas believes that crypto assets are not a safe haven, but rather a new form of digital asset or a new way to collect asset ownership. He stressed that the regulatory framework for the cryptocurrency industry needs to be clear and concise so that investors and innovators can benefit.

Circle's Allaire believes that a lot of work needs to be done to create a stable and profitable business environment for its global customers. "Stable coins and internet marketing businesses are not too big to fail, but too big to ignore right now."

cryptocurrency exchange

Another major problem is trade monitoring. Coinbase's Haas and FTX's SBF both support partnerships with regulators.

However, Haas said the SEC did not provide further details on its opposition to Coinbase cryptocurrency lending.

As for decision-makers, they believe that exchanges should protect their customers. Haas said Coinbase divides its assets into “gold wallets” (for storing crypto assets online) and “cold storage” (for storing crypto assets offline). Less than 2% of Coinbase cryptocurrency assets are in wallets, while the rest are cold stored, making it less vulnerable to hacker attacks.

Dollars or currency?

The audience also discussed the regulation of the U.S. dollar as a global reserve, as well as how the popularity and use of digital currencies in many countries will affect supply. Cryptographic values ​​are affected in this analysis.

Circle's Allaire believes the answer lies in whether the United States will support a stable coin as a digital currency, and if so, it will help the United States become the most valuable competitor in the world. "If the cryptocurrency market is the new internet market, we would expect the US dollar to play an important role."

Stablecoin partnerships with private companies will be the new path. Crypto assets have already helped U.S. global competition, eliminating the need for digital banking. "Today, US and US currencies have won the digital currency race. US dollar stability coins have traded into trillions of dollars."

America is lagging behind

Cryptocurrency company executives are starting to understand and embrace new cryptocurrency developments in other countries, including the United States after the incident. They said crypto assets can solve the global problem of no bank and no bank account and are a faster and cheaper way to send money. More importantly, they said difficult procedures and strict supervision will hamper innovation and discourage entrepreneurs.

Brooks of the Bitfury Group criticizes that if the United States does not act quickly enough, crypto-asset companies will look to other countries with better regulations. The United States still does not have Bitcoin space ETFs, especially Fidelity Asset Management. Fidelity Asset Management moved to Canada as a Bitcoin Spot ETF product after being rejected by the SEC. If you already have Bitcoin Spot ETF products traded in another country / region, nothing can prevent the exporting company from doing business in that other country / region.

Fidelity Asset Management filed for a Bitcoin ETF with the SEC in March of this year, but without short- or medium-term approval, the company turned to the Toronto Stock Exchange in Canada for help. Since this decision, Fidelity has become the largest provider of Bitcoin space ETFs. Many similar documents are still awaiting approval by the SEC.

"Some things are legal in other countries, but not here. If you are an ETF developer you can't do it here so you have to travel."

Encryption is an open system.

Management said crypto assets would be beneficial for those without a bank account.

For Circle's Allaire: “It is an open source platform that can provide an unprecedented business opportunity for anyone using a mobile phone from anywhere in the world. "

FTX's SBF pointed out that encryption technology can solve many of the problems identified by Congress. “The number of bank banks in the United States and around the world shows that financial resources are not always available for everyone. And crypto assets can provide a way to solve the problem. It makes life easier and less. dear to people. Do what you want and manage your financial life quickly and fairly. "

However, some lawmakers have questioned the cryptocurrency market and investors, and the issues they see happening with the pre-2008 financial crisis. "There is still a lot of change in the industry." said Elle Green, president of Texas.

Texas Republican and former teammate Roger Williams is compared to head coach George Herman "Babe" Ruth, a modern and popular baseball player. Williams points out, “Everyone (the leaders) has been constantly working to create something new to bring this new technology to the masses. Unfortunately, we just need a little bit of the media industry to influence some of the innovation. It is a success. "

other shoes

Are merchants at risk of fraud?

Financial Services President Waters believes that "Americans are increasingly using crypto assets to make financial decisions every day" and that the economy is growing rapidly unattended, "Deception and control, and this is theirs. cause of the persecution ”.

The management did not react well because it is always an issue that remains with the management.

Crypto Mining Energy consumption Teeb meem

Congressman Rashida Tlaib raised the question of the energy value of cryptocurrency mining and explained how the mining industry moved from China to U.S. states such as Montana. movement. Dixon of Stellar questioned whether government should play a key role in reducing energy and carbon emissions in the crypto industry.

Dixon defends weak demand for his crypto asset Stellar. "Not all crypto tools are proof of a deal, we're being fair."

Web 3.0

Congressman Blaine Luetkemeyer (Blaine Luetkemeyer) asked Brooks of the Bitfury Group about "user control" of tech companies like Facebook (Meta) and Twitter, and what the impact might be on Facebook's dollar. . Brooks believes that "the goal of crypto is real decentralization" and that companies going to extremes will eventually lose value and forget about it.

Brooks firmly believes that Web3.0 is better than the Internet's "Top Five Controlled" and urges developers to create better policies. “Financial risk can now be addressed through diversification. "

concludes

The last question remains how the decision-makers will make this new information and create new rules, since no decision during the hearing can relate to the management of a crypto business in the immediate future. In the past, the SEC and its board of directors, the CFTC, have also debated their role in the crypto industry.

Cowen analyst Jaret Seiberg said: "It's hard to see how these hearings will create momentum for the rule of law," Cowen analyst Jaret Seiberg said. Thus, the SEC will continue to exercise strict control and supervision. Nothing in the hearing will force the SEC to shut down. "

The meeting of Congress and the crypto industry will continue next week (December 14), when the Senate Committee on Banking, Housing and Urban Affairs holds a hearing on fixed income.