Following the previous hearings in mid-July, on July 30, the US Senate Banking Committee on the regulatory framework for cryptocurrencies and blockchains held a hearing entitled "Study of the regulatory framework for digital currencies and blockchainBlockchain
is a continuous and sequential block chain of information (digital linked list). When building a blockchain, copies of related blocks are simultaneously stored on multiple computers.Details."
The latest Bitcoin news, showed that the hearing influenced the rate of the coin and the entire cryptocurrency market. Over the past 24 hours, Bitcoin grew by 2.75%, reaching $ 9,765.40. – According to coinmarketcap.
At the meeting, senators and three witnesses – Jeremy Aller, CEO of Circle, Rebecca Nelson, an expert in international trade and finance, and Mehra Baradaran, a professor of law, – among other things, discussed the regulatory issues that cryptocurrency and blockchain can bring. However, no specific statements on how regulation can develop in the United States have been made.
Some senators stressed that the blockchain could not solve all security problems, and the public also needed to discuss what kind of interference this technology could create, while others recognized the power of cryptocurrency.
Mehra Baradaran talked about how people tried to cash in unauthorized funds, and how these attempts failed, comparing it with some of the stated goals of cryptocurrency.
Baradaran recognizes that, although the blockchain is "unique", it’s about digital assets, the blockchain, and what’s really happening in these markets. He reiterates that problems without banking are political, not technological problems.
At the same time, Aller noted that: "we must regulate digital assets, but we need new definitions of them as a class."
Aller: "The rules concerning the storage of digital assets are really necessary. But there is a big problem that they do not fit into the definitions of our current financial systems. And unfortunately, in the United States, the guidance that the SEC provides is extremely narrow."
Professor Mehra Baradaran: "It is yet to develop an innovative technology that would eliminate risks, as well as frauds and crimes that regulation is called upon to fight."
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But the transition to blockchain does not protect against risks, according to Baradaran.
Professor Mehra Baradaran believes that after the 2008 financial crisis, people accepted Bitcoin.
However, he adds that the current problems in our economy are issues of politics, not technology, therefore blockchain is not necessarily the answer to all problems. According to Baradaran, we already have a State Federal Reserve System that should solve many problems.
Then Jeremy Aller continued to talk about his views on the problems of our current financial system, including cybercriminals, hostile countries and the lack of equal access.
Aller: "There may be a better future ahead built on digital assets and blockchains, but Congress must define digital assets as a new asset class."
On July 30, the US Senate Banking Committee held a hearing: "Examining the regulatory framework for digital currencies and the blockchain." Recall that on July 28, the general director of the Ripple cryptocurrency company, together with its founder, published a joint message to the US Congress in which they stated that cryptocurrency could supplement national currencies.
Editor: Pereyidenko Ihor