The country leads in terms of crypto companies, their users and most trading volumes. However, political disagreement is one of the major concerns that hinders the growth of burgeoning asset classes and needs to be resolved in order to be in the competition to let maximum crypto companies stay.
Crypto Can Sustain After Democrats and Republicans Consent
Credit rating agency, Moody’s, brought a report on Tuesday, June 20, highlighting the issue of lack of bipartisan agreement on crypto regulations resulting in keeping the United States behind other countries in the crypto game. The report showcased if both Democrats and Republicans do not come to a consensus for crypto regulations, then the investors and companies are likely to shift their operations offshore.
According to Moody’s report, both the parties have similarities in their objectives, though they do have differences on the methods to approach towards the goals. On the matter of crypto regulations, both the parties on the different aisles had differences in their takes. Their languages on the bills related to stablecoins and digital assets regulations’ comprehensive framework was sparring.
For instance, the lawmakers from both the parties had contrasting views on the stablecoin regulations, if they were to fall under federal or state level jurisdiction. Additionally, the similar pattern of different stance was seen on the issue of addressing the crypto customers protection.
Crucial, but the Road towards Bipartisan Support is Tough
In the report, Moody’s also noted down the “political disagreements” visible even on the issue of crypto regulations. Citing the heading on the future of digital assets held on June 13, the report highlighted how the Republican lawmakers such as the House Financial Services Committee, Chair Patrick McHenry had different views from the Democrats like Maxine Waters. Despite the similar goal of development of a regulatory framework for crypto, the discussion had their own concerns.
Contrasting stance on crypto could be one thing, but constantly standing on the other sides for the same objective is a concern.
Moody’s report noted the “bipartisan agreement looks highly uncertain” given the present scenario towards crypto regulations. Congress is likely to witness more debates over the issue given the concerns of Democrats over the possible adverse efficacies of the proposed bill on consumer protections and preventions of fraud-like illicit activities.
U.S. Can Lose its Chance and Charm
The credit rating agency noted in the report that in case the United States fails to reach a “bipartisan agreement” and does not bring a regulatory framework, it could make the country fall behind the countries with “comprehensive rules.” Crypto investors and companies are likely to move towards the jurisdictions with clarity over the issue.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/06/21/crypto-regulations-need-bipartisan-support-in-the-u-s-moodys/