US Congress’ Crypto Comprehension Is Being Tested During This Entire Crypto Affair

After the collapse of crypto trading FTX earlier this month, a few politicians are waving red flags or at least timidly holding them. 

Congress is calm, composed, and collectively foolish even while hundreds of millions of dollars worth of pleasure, retirements, and even basic health care were wiped in the blink of a cunning eye.

Clueless Politicians

According to Wired’s recent article, Bernie Sanders is an independent who plays a Democrat every four years and admits he does not know much about the topic.

Republican US senator from Missouri and IT pioneer Josh Hawley reveals he does not grasp the technology.

The Democratic Party’s top leaders in the House seem to be on the same outdated page. 

US Representative Hakeem Jeffries (D-New York), the head of the House Democratic Caucus and presumably the future leader of the House Democrats, remains cautious when asked about his party’s intentions to confront the volatile cryptocurrency sector in the wake of FTX’s collapse. 

“Well, I think, that’s an issue that, I presume, will be taken up by the Financial Services Committee,” he responds.

Congress continues to debate what “money” is, but most of us want to know when we will get ours back, digital or otherwise. Jeffries and other party leaders said there is time to kill despite the crypto meltdown.

Senator Cynthia Lummis (R-Wyoming) said the development of cryptocurrencies and their dangers surprised Congress.

Lummis said many members of Congress think the digital asset business is immature. People underestimate its growth. 

Elon Musk’s announcement that he may utilize Twitter as a payment mechanism shows how developed this business is.

See Also: New York Signs Law That Limits Crypto Mining Due to Environmental Concerns

Sector’s Security

This summer, Lummis joined up with leftist US senator Kirsten Gillibrand (D-New York) to release the Responsible Financial Innovation Act, as reported by Wired.

It aims to differentiate between securities and commodities, allowing the Commodity Futures Trading Commission (CFTC) additional jurisdiction to regulate cryptocurrencies. It would also create an advisory body to assist legislators, and regulators navigate the ever-changing digital currency market.

Gillibrand said the industry needs legislation to distinguish the wheat from the chaff. And that they want to keep fraudsters off the market.

Congress has failed to adopt a comprehensive bill safeguarding Americans’ digital assets, including private secrets like reproductive choices, even as both parties have advocated for upending America’s digital rules.

Skeptics of Crypto

Some politicians support crypto, while others are skeptical.

“Crypto fortunes are smoke and mirrors. Built on a lot of corruption and insider dealing,” US senator Elizabeth Warren (D-Massachusetts) stated in Wired’s report. “We’ve needed regulation for a very long time, but Congress has been frozen in acting.”

Warren wants complete laws not created by the government. She said it is crucial that regulators have the tools they need to prevent fraud and deceit like what transpired at FTX.

“We need to have a base,” Lummis remarked. “There has to be a floor, and then, as time goes on, if things get over-regulated and we’re sacrificing innovation because of it, we can cross that bridge when we come to it.”

Related Story: Singapore Crypto Exchange Demands’ Practical’ Regulation After FTX Crash

This article is owned by Tech Times

Written by Trisha Kae Andrada

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