#417
Washington Warms Up To Crypto

Published:

Dec 18, 2021


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Published:

Dec 18, 2021


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Washington is warming up to crypto and the opportunity for the tech to transform both finance and the internet itself. This month, a pair of US congressional hearings highlighted a noticeable sentiment shift on the Hill towards the asset class: The House seeked to better understand the far reaching impact of the digital asset ecosystem, while the Senate unpacked the state of the burgeoning stablecoin market.

In an opening statement by ranking member McHenry to the House committee, the congressman noted that “2021 was the year of cryptocurrency,” with terms such as DeFi, DAOs, NFTs, and web3 becoming part of the common lexicon this year. The message was indicative of the far reaching interest brought to the 5 hour, fully-attended committee hearing with panelists representing some of the largest crypto industry participants in the US.

In rare form, there was bipartisan support for both learning more about the positives of crypto and the desire for regulation of the stablecoin market. In 2021 to-date, more than $5.6t worth of volume has been transacted with stablecoins through public blockchain networks, more than +5x growth from 2020. Rightfully so, many congressional leaders in both the House and Senate want to ensure adequate consumer protections and financial stability are maintained on this rapidly evolving payment innovation.

While congressional consensus on the specifics of how and who should regulate stablecoins, DeFi, DAOs, and digital assets still remain very much open questions that likely won’t be solved soon, this month’s hearings demonstrated yet another coming of age moment for the young asset class — and an important step towards prudent policy discussions in the years to come.

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Select Financings


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