The US anti-crypto army faces resistance
The anti-crypto army, led by Senator Elizabeth Warren, faces strong opposition from influential conservative groups in the United States.
A letter from David M. McIntosh, Grover Norquist and Adam Brandon, the presidents of the Club for Growth, Americans for Tax Reform and FreedomWorks, respectively, to Senator Marshall, criticizes his support for Senator Warren’s efforts to impose new rules on digital asset companies.
These groups argue that such regulations would stifle innovation, penalize job creators and drive investment away from America.
Elizabeth Warren’s Anti-Crypto Army
Senator Warren has been actively working to recruit conservative Senate Republicans to join her in regulating the crypto industry. She is pushing for a bill that would impose tougher anti-money laundering restrictions on providers of digital assets. This includes requirements for verification of customer identities.
Despite being an outsider in the Senate, her partnership with GOP lawmakers reflects a broader coalition. This alliance is made up of progressives, conservatives, watchdog groups and bankers concerned about the potential risks associated with the unregulated growth of the crypto industry.
However, the crypto industry and its proponents strongly oppose Warren’s anti-money laundering bill.
A board member at Coinbase, Katie Haun argues that these efforts are “misguided, reckless and potentially unconstitutional.” She affirms that America is on a “dangerous path to closing the banking system to those who are disfavored by a particular administration.”
Lobbyists and some former regulators also express concern about the bill, fearing it could stifle industry growth and innovation.
A recent study reveals that the US is at risk of losing about one million web3 developer positions and a range of related non-technical jobs over the next seven years if the current trend of regulatory enforcement continues, driving technological innovation abroad.
According to the report, the US global percentage of web3 developers has fallen from 40% to 29% over the past six years, with no signs of slowing down. The US is losing almost 2% of web3 developer market share annually.
Consequently, high-quality, well-paid job opportunities migrate from the United States to regions that offer more favorable conditions, such as clear regulations or a commitment to promote technological progress.
Gain support among legislators
Despite this opposition, Warren remains focused on addressing national security concerns as her legislation’s primary focus. It also raises other issues, such as consumer protection and environmental impact.
Senator Warren’s partnership with Senator Roger Marshall, a Kansas Republican, highlights the potential for a bipartisan coalition working to regulate the crypto market. Marshall shares Warren’s concerns about national security risks, and both senators are actively working to build support for the bill.
Meanwhile, other senators such as Mike Rounds and Sherrod Brown express skepticism about crypto and discuss possible regulations. This further illustrates the growing interest in regulating the crypto industry from both sides of the aisle.
The anti-crypto movement is gaining momentum in the US Senate, with lawmakers from both parties expressing concern about the potential risks associated with an unregulated crypto industry.
Interestingly, this comes at a time when the US Federal Reserve is promoting the use of its new instant payments infrastructure, FedNow. FedNow is designed to enable financial institutions of all sizes to provide secure and efficient instant payment services.
It aims to become a potential competitor to cryptos in 24/7 real-time transactions.
As the debate over crypto regulation continues, it is worth considering whether the push for stricter oversight is partly influenced by the desire to advance the adoption of FedNow.
If successful, the FedNow service could offer an alternative to crypto for individuals and businesses seeking instant payment solutions. However, the connection between Warren’s bill and the promotion of FedNow remains uncertain.
What is clear, however, is that the ongoing debate over crypto regulation has the potential to shape not only the future of digital assets, but also the broader economic landscape in the United States
Disclaimer
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