After a powerful tornado to hit the cryptocurrency market, which has been weighing down on the digital assets’ space in the United States for more than two years today, legislators have recently started to admit it is not an easy task at all to impose such a ban on what they identified as “global innovation”.
July 31, 2019 | AtoZ Markets - The U.S. Senate Committee on Banking, Housing and Urban Affairs held last Tuesday a hearing on cryptocurrencies and blockchain technology, where the Chairman of the Senate Banking Committee, Mike Crapo (R-ID), expressed that the popularity of cryptos and the demand on them would stand an obstacle in the way of banning them, if that would ever be possible.
Addressing Jeremy Allaire, who is the co-founder and CEO of global financial services company Circle, Crapo’s said in a questioning tone “If the United States were to decide — and I’m not saying that it should — if the United States were to decide we don’t want cryptocurrency to happen in the United States and tried to ban it, I’m pretty confident we couldn’t succeed in doing that because this is a global innovation,”
In response to that, Allaire pointed out Bitcoin imposed a reality today that cannot be ignored, saying, “I think the challenge that we all face with this is some of these cryptocurrencies — they’re literally just a piece of open-source software, […] there’s nothing else. It exists on the internet, it’s open-source software, anyone can implement it, it runs wherever the internet runs, and these have a monetary policy where these assets are algorithmically generated . . . That is a challenge that every government in the world now faces — that money, digital money, will move frictionlessly everywhere in the world at the speed of the internet.”
It is difficult to block the road to cryptos, but the traffic light is still red
These comments come contradicting to the fact that new crypto projects are being met with grave suspicions today.
The Facebook Libra coin, to cite an example, has been frenziedly attacked even before it was launched, with the U.S lawmakers, congressional personalities and big financial heads, along with many central banks around the globe reflecting lingering concerns over how the coin will impact the market, and whether it will negatively affect sovereign currencies or not.
In that context, AtoZ Markets reported on July 18 that the U.S Congresswoman Alexandria Ocasio-Cortez questioned the Calibra wallet project lead David Marcus, asking, “Why should these activities be consolidated under one corporation?”, to which Marcus answered that the coin is governed by members chosen accordingly.
Amid fears by professionals, whether the Libra coin would cause instability in the global financial system, China returned the echo in suggesting to issue its “Chinese Libra coin” before Facebook does.
How do crypto observers receive this news?
To expand more on the topic, we reached to Mark Helfman, an active writer in the cryptocurrency sphere, who is also the author of the book “Consensusland: A Cryptocurrency Utopia”.
Asking him how he receives the news today that the regulators in the U.S started to realise how difficult it is to ban a global innovation like cryptocurrencies, and whether this is a sign of supporting them tomorrow, Helfman said:
“US law makers will definitely support the industry. The problem is, at this point they mostly view cryptocurrency as a way for people to fund terrorism, commit crimes, and evade taxes. But our country has a strong history of entrepreneurship and supporting entrepreneurs. As more and more of them make their voices heard, Congess will change. US regulators have already opened the door to businesses using cryptocurrency in their products. In the past 2-3 years, US blockchain industry has set up lobbying operations and other influence campaigns. Plus Wall Street just recently got regulators to approve investment products that use actual cryptocurrency — making it likely Wall Street will push its own narrative about cryptocurrency. As with everything involving US Congress, it will take time. I would be shocked if US law makers ban cryptocurrency at any level.”