Busy Crypto Activities in Washington, D.C.
In a recent interview with Ron Hammond from the Blockchain Association, he highlighted the ongoing crypto-related activities in Washington, D.C. Two important hearings were mentioned, one involving the Securities and Exchange Commission (SEC) and another addressing digital assets more broadly.
The SEC’s Approach to Cryptocurrency
Hammond expressed that several members of Congress are concerned about the SEC’s approach to cryptocurrency and private equity. The industry has raised concerns regarding the SEC’s recent rules, leading to a growing focus on these matters within the Financial Services Committee. Patrick McHenry, the committee’s leader, strongly opposes this issue.
Expansion of the Digital Asset Subcommittee
The Digital Asset Subcommittee, initially focused on cryptocurrency, is expanding its scope to include broader fintech and artificial intelligence (AI) concerns. This expansion is attributed to Chairman Gensler’s increased oversight over these areas at the SEC.
Hearing on Funding Mechanisms and National Security
The upcoming hearing hosted by the National Security Subcommittee will primarily focus on the funding mechanisms used by Hamas for their activities. Policymakers from both sides of the aisle are concerned about where these funds are coming from and whether cryptocurrencies are supporting their actions.
Hammond stated that during major crises or issues related to national security or allies, other matters tend to take a backseat. He mentioned that the SBF trial, which is currently happening, has been sidelined due to these pressing concerns.
Elizabeth Warren’s Stance on Cryptocurrency
The interview also discussed Elizabeth Warren’s recent comments linking cryptocurrency to the situation in the Middle East. Despite her criticism of the crypto industry, the Blockchain Association has extended an invitation to Warren to meet with innovators, national security experts, and constituents at their upcoming policy summit in November.
Impact on Policymaking
The SEC’s denial of the Grayscale Bitcoin Spot ETF and Larry Fink’s comments on cryptocurrency and Bitcoin ETFs have had an impact on policymaking. Congress is exerting political pressure on the SEC to approve cryptocurrency-related financial products.
Hot Take: Cryptocurrency Gaining Attention in Washington
Cryptocurrency-related activities are gaining significant attention in Washington, D.C. The SEC’s approach to cryptocurrency and private equity has become a central issue for many members of Congress. As the Digital Asset Subcommittee expands its focus beyond cryptocurrency, concerns about funding mechanisms and national security are also being addressed. Elizabeth Warren’s critical stance on cryptocurrency has prompted an invitation from the Blockchain Association to engage with industry experts. The denial of the Grayscale Bitcoin Spot ETF and discussions around Bitcoin ETFs have influenced policymaking, with Congress pressuring the SEC for approvals. Overall, cryptocurrencies continue to shape discussions and decisions in Washington.
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