US Senator compares cryptocurrency rise to that of the internet - urges regulators to be on the side of the innovator

A US Senator has urged regulators not to clamp down too strictly on cryptocurrencies, comparing their rise to that of the internet.

Wyden is chair of the Senate Finance Committee, and the author of the law that was built around the internet. As one of the co-authors of Section 230, the law that mandated a free and open internet, Wyden is attributed with being one of the legislators of free-speech on the internet. Speaking with the Financial Times, Ron Wyden, the Democrat Senator of Oregon and chair of the Senate Finance Committee noted:

“There is obviously a debate about stricter regulation but I want to be on the side of the innovator.”

He added:

"When I think about crypto, I think about remittances, or somebody who has a kid 1,000 miles away and wants to get them help in an emergency, rather than going through scores of banks, credit card companies,”

The Democratic senator’s comments in favour of cryptocurrencies may be tempered by his greater stance on how regulation should first and foremost take precedence, however his recent comments demonstrate how the chair of the Senate Finance committee sees the relevance of cryptocurrencies in an innovative society. 

In January, the chairman of the Senate Banking, Housing, and Urban Affairs Committee, Sen. Sherrod Brown likened cryptocurrency to gambing, referring to stablecoins but with emphasis on digital currency:

“Let’s be clear about one thing—if you put your money in stablecoins, there’s no guarantee you’re going to get it back,” said Brown. “And if there’s no guarantee you’ll get your money back, that’s not a currency with a fixed value—it’s gambling.”

With sanctions being imposed on Russia by much of the international community, the US government has urged cryptocurrency providers to adhere to economic sanctions in place, with concerns that Russia is using cryptocurrencies to circumvent sanctions. Hilary Clinton shared her concerns in a recent interview, saying that she hopes “somebody at the Treasury Department is trying to figure out how to rein in the leaky valves in the crypto market that might allow Russia to escape the full weight of the sanctions”. 

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.