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Will Congress' poor knowledge of cryptocurrencies allow regulators to suffocate them?

Will Congress' poor knowledge of cryptocurrencies allow regulators to suffocate them?

Some of America’s population is waking up to the possibilities that crypto brings to the table. Not least the fact that the middle man, who takes an exorbitant slice of the pie, is eliminated. However, with the Senate still pretty much totally clueless as to the benefits of this new financial revolution, regulators still have free reign to continue their ignorant and heavy-handed enforcement of the sector.

There is much for crypto to overcome before investors can truly start to invest in the sound money that is Bitcoin and some of the more fundamentally sound cryptocurrencies.

For a start, there is the still unresolved wording in the recently passed infrastructure bill, and the deep misgivings of the Biden administration over the implications of stablecoins.

Add to this the bellicose sounds coming out of the Securities and Exchange Commission, mainly from the mouth of chairman Gary Gensler it must be said.

It remains rather a mystery that such a supposedly well-educated figure on cryptocurrencies should be just repeating the same grossly uninformed inanities as the likes of Janet Yellen, secretary of the US Treasury, and Christine Lagarde, president of the European Central Bank.

We are always reminded that “investor protections” are the basis for restricting these people from protecting their wealth. They are forced back to the paltry interest offered by the traditional financial institutions and are made to just watch as their purchasing power is rapidly worn away by Fed-induced inflation.

Most central banks across the world are now investigating the possibilities of CBDCs (central bank digital currencies). China is among the most advanced in its CBDC development, and over time will no doubt force its citizens to use them.

The measure of control over the economy they potentially will have cannot be doubted. However, this will be at the expense of the monetary freedom of citizens, the freedom to spend their money how, and on what they want.

According to an article on the NationalReview.com, there is however hope, in the shape of the “Keep innovation in America Act”, a bill sponsored by both sides of the house in order to minimise the damage to crypto from the infrastructure legislation.

The National Review article also highlights how the SEC fought the “equity crowdfunding provision of the JOBS Act, Title III”, which had it succeeded, would have stopped “$1 billion in investment, to 4,500 companies, in 450 industries”. 

The SEC was so opposed to the act that it took four years to write and agree to the wording. It is predicted that the crowdfunding industry is set to double by 2027.

Congress had the intelligence and foresight to pass this act in the face of such huge opposition from regulators. It is hoped that senators will now dedicate the time to at least having some understanding of cryptocurrencies, and show how the US can still take advantage of what is possibly the biggest financial opportunity in its history.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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