Congress Crypto Regulations Needed to Slow Innovation Exodus

U.S. lawmakers have reintroduced a bill to prevent an innovation exodus in the wake of an ongoing crypto regulation crackdown on the industry.

A bipartisan effort to keep innovation in America has been revived by pro-crypto policymakers.

Crypto Regulation Battlefield

The Keep Innovation in America Act was first introduced in March 2021. However, it has been reintroduced in the wake of the regulatory war on crypto that threatens to send talent overseas.

Representatives Patrick McHenry and Ritchie Torres revived the bill this week to fix digital asset reporting requirements.

On March 10, Coinbase CEO Brian Armstrong tweeted the news, commenting:

“We’re grateful this is a bipartisan effort, and we hope it’s the first of many bills to come this year that will protect consumers and provide clarity on the regulatory environment for crypto.”

Innovation Will Leave America

Earlier this week, Chairman of the House Financial Services Committee McHenry issued a stark warning. He said that America could either cement its position as the leader of the global financial system or it can allow this wave of innovation to pass by.

The bill aims to change the reporting requirements for crypto industry participants under current legislation. As it stands, the current law will “hinder the development of digital assets and its underlying technology in the United States, shifting its development outside the United States.” McHenry added:

“Unfortunately, misguided policy and regulatory overreach threatens to push this dynamic industry—and its potential benefits—overseas.”

Ritchie Torres echoed the sentiment, stating:

“This common-sense legislation, which has earned the support of key industry and market participants, brings digital asset reporting requirements in line with the current ecosystem and offers much-needed legal and regulatory clarity to help cement our continued place as the global leader in crypto technology and innovation.”

The bill has also gained support from both sides of the political divide. Cosigners include Congressmen Warren Davidson, Tom Emmer, Eric Swalwell, Ro Khanna, and Darren Soto. Additionally, Digital Assets and Fintech Subcommittee chair French Hill added his support.

In 2021, the Biden administration introduced a bill that made sweeping reporting requirements for any entity involved in crypto.

Opposition to War on Crypto Mounting

Furthermore, several high-profile industry executives have echoed the exodus warnings over the past week. The concern is mounting in the wake of the ongoing war on crypto by the SEC, which is on a mission to quash the industry before it can bloom.

In addition to Brian Armstrong, Circle CEO Jeremy Allaire and Ripple boss Brad Garlinghouse have also cautioned over an innovation flight.

Coinbase Chief Legal Officer Paul Grewal is also preparing to testify on Capitol Hill on March 10, echoing the sentiment.