By Shelly Melancon (Switzerland)
The CEO of Bitfury Group, Brian Brooks, gave his testimony before Congress yesterday. The executive answered many pertinent questions regarding the regulatory infrastructure in the crypto industry in America. Brian Brooks had previously served as head of the United States Office of the Comptroller of Currency (OCC). This meant that the now crypto executive could understand the difficulties regulators faced in dealing with crypto.
The United States Is Behind On Regulations
Representative Ted Budd asked Brooks during his testimony if the United States was playing catch up when it came to providing an environment that could allow the blockchain industry to grow. The former OCC chief answered in the affirmative. Congressman Ted Budd, in a tweet, later accompanied by a short clip of this particular interview, noted that something had to be done about the current situation.
SEC Responsible For Pushing Legitimate Products Away From The United States Says, Brooks
The crypto executive went on to call out the United States SEC continuously failing to approve the spot Bitcoin exchange-traded funds. He added that the current position of the SEC on these matters had forced crypto businesses to move elsewhere. He noted that this had harmed interested investors, ideators, and labor in the United States.
The executive supporting his case added that the most prominent financial advisers in the United States, Fidelity, were forced to launch their physically-backed Bitcoin exchange-traded fund in Canada. He questioned why the United States SEC struggled to give the green light on spot ETFs when their equivalents in other countries were readily approving them. Brooks went ahead to raise question marks on the regulations in this sector.
The statements by Brooks received support from many stakeholders. An online content creator and experienced investor, Lark Davis, in a tweet reiterated the points raised by the Bitfury chief. Lark Davis also added that he hoped for a positive outcome from the process.
Representative Ted Budd went on to ask why the United States could not achieve these things. Brian Brooks responded that the reason was simply a failure of the United States SEC to give the green light for legitimate crypto products. He added that many of these products had been approved by other member countries of the G20 forum.
The congressman expressed that the United States had the potential for huge economic benefits with crypto. He remains concerned that the present regulations will stifle the industry that the regulators were still struggling to comprehend. He expressed fears that the future of finance might be developed outside the United States, stating that this was an outcome the government shouldn’t allow.
Details Revealed Before The Hearing
A memo released before the hearing yesterday revealed issues that congress was hoping to cover. It outlined matters relating to stablecoins and present crypto market conditions. A lot of attention was placed on matters surrounding the protection of investors and the transparency of the market.
The memo outlined that the current crypto market lacked central regulatory structures, exposing investors to fraud, market manipulation, and abuse. The memo adds, however, that some crypto exchanges and stablecoin providers have received some level of state backing. It revealed that the hearing would see every member of the committee present, giving each a chance to interview the crypto executives.
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