A bipartisan group of US lawmakers is urging Federal Reserve Bank Chairman Jerome Powell to support the development and adoption of decentralized digital assets.
A letter signed by Representatives Tom Emmer, Ro Khanna, Darren Soto, Glenn Thompson, Frank Lucas, Eric Swalwell, and Ted Budd says the lack of a unified regulatory framework is stifling the growth and innovation of digital assets.
“In the United States, digital assets are subject to overlapping regulation from multiple regulators, including the Federal Reserve Board, Financial Crimes Enforcement Network, the Securities Exchange Commission, the Commodities Futures Trading Commission, and others. The adoption of cryptocurrency has been hobbled by a lack of regulatory clarity addressing such matters as custody, tax policy, accounting practices, and other vital requirements.”
The lawmakers also highlight that the prevailing regulation-by-enforcement approach is proving to be an obstacle to the expansion of the digital asset industry in the United States.
“Given this uncertainty, the regulatory environment for digital assets has been defined by enforcement actions, causing uncertainty and leaving entrepreneurs reluctant to invest and innovate in the United States, which has also had the detrimental effect of driving high-paying technology jobs and companies out of our country.
What steps is the Federal Reserve Board taking to coordinate with other federal regulators on the development of policy guidance for digital assets such as cryptocurrencies, and other critical related policy issues such as custody and accounting, to ensure America remains a leader in financial innovation?”
The representatives end the letter by petitioning Powell to collaborate with other government agencies to create a regulatory environment that fosters the development of crypto and other digital assets.
“Decentralized digital assets and digital asset ecosystems empower individual Americans and unlock great access to opportunities for all – whether that is the opportunity to access better financial services and products or the opportunity to innovate, to form capital, to launch projects, and to create jobs. The Fed’s work with other regulators to support domestic innovation and widespread digital asset adoption is imperative.”
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