Crypto regulation gained momentum with US House Committees as several testimonies were presented to them on crypto assets and their path ahead.
Two US House Committees recently held hearings on crypto as the anticipation and need for crypto regulations grew louder in the United States. The Agriculture Committee and the Financial Services Committee of the United States House of Representatives witnessed testimonies presented to them, though the outcomes turned out to be quite similar in both.
In the ‘The Future of Digital Assets: Identifying the Regulatory Gaps in Digital Asset Market Structure’ hearing of the Financial Services Committee, Zachary Zweihorn, a partner at the firm Davis Polk, implied that current securities laws and regulations couldn’t be applied to crypto assets.
Simple registration of crypto firms was vastly different from monitoring them for compliance, said Zweihorn.
Academic Hilary Allen, who is a law professor at American University, contradicted Zweihorn by saying that crypto firms could easily comply with existing rules of the government which ensure financial stability and investor protection.
On the other hand, Daniel Gorfine, the founder and CEO of Gattaca Horizons, stood a middle ground with his opinion when he stated that the problems faced by the crypto sector in the previous year were due to focusing too much on novel digital assets, rather than their real-world applications that could benefit the society.
Other opinions were also heard at the Agriculture Committee’s hearing.
Earlier, the members of the committees had jointly said in a press statement, “Our Committees are embarking on an unprecedented joint effort to pass and sign into law clear rules of the road for the digital asset ecosystem. We must strike the appropriate balance to protect consumers without stifling responsible innovation.”