| By Rep. Don Beyer (D, VA-8). July 28, 2021. Rep. Don Beyer (D-VA) today introduced the Digital Asset Market Structure and Investor Protection Act, legislation that would protect consumers and promote innovation by incorporating digital assets into existing financial regulatory structures. “Innovation in the digital asset sector is creating new goods and services every day as well as many new, high-quality jobs. The United States should provide a legal and regulatory environment which promotes this type of innovation and growth,” said Rep. Beyer. “Digital assets and blockchain technology hold great promise, and it is clear that assets like Bitcoin and Ether are here to stay. Unfortunately, the current digital asset market structure and regulatory framework is ambiguous and dangerous for investors and consumers. Digital asset holders have been subjected to rampant fraud, theft, and market manipulation for years, yet Congress has hitherto ignored the entreaties of industry experts and federal regulators to create a comprehensive legal framework. Our laws are behind the times, and my bill would start the long overdue process of updating them to give digital asset holders and investors basic protections.” Since the introduction of Bitcoin in late 2008 digital assets have evolved from technological curiosities into financial instruments used by millions of ordinary Americans. Today there are over 11,000 separate digital asset tokens in existence, with a market capitalization of over $1.5 trillion. An estimated 20-46 million Americans own Bitcoin and other digital assets, and that number is expected to grow. Many of these digital asset market participants, who are primarily average Americans rather than large institutional investors, have been victims of theft during trading platform hacks, or been exposed to significant market manipulation or frauds such as ponzi schemes. Digital assets have also been widely used for money laundering and other illicit purposes. For instance, in May 2021, the Colonial Pipeline, which provides gasoline to much of the eastern United States, had its computer system hacked and was forced to pay a $4.4 million ransom in Bitcoin, which is the preferred currency for ransomware attacks. Read Rep. Beyer’s Full Statement Here. |
Tag: Innovation
SEC’s Hester Peirce hopes 2021 will be a ‘turning point’ for crypto regulation in the U.S.
By Michael McSweeney – March 21, 2021. (The Block)
SEC commissioner Hester Peirce remarked during a virtual conference appearance last week that “evidence-based rulemaking is not yet the norm in crypto-regulation” as part of a wider exploration of the topic.
Peirce spoke on March 15 during an event organized by the British Blockchain Association. According to a transcript of her speech, Peirce once again outlined an expansive and positive viewpoint on cryptocurrencies, noting in her speech authorities perhaps spend too much time focusing on the “illicit” use of the technology compared to its potential benefits.
“Perhaps, government officials should pause to consider the flip side of crypto—its value in protecting people from illicit activity,” Peirce said. “Because of its ability to reach people without intermediaries and its ease of storage, transport, and access, crypto can be an important part of the survival story of people living under the threat of harm by their families, people in their communities, or repressive governments.”