• Wed. Jun 22nd, 2022

Crypto News: What Tech Experts Are Telling Lawmakers About Digital Currency

ByHazel R. Lang

Jun 1, 2022

Source: Chinnapong/Shutterstock

Today’s crypto news sees tech experts reaching out to lawmakers on behalf of the industry. But while this type of interaction historically favored digital cash, today this group of industry bigwigs is warning against blockchain technology and crypto-friendly policies. But who are these experts and why are they so opposed to digital assets?

Throughout this year, the conversation about crypto has accelerated significantly at the legislative level. Lawmakers have held several meetings on different facets of the industry, ranging from its environmental impact to safety and chain criminal activity. These meetings set the tone for the sweeping infrastructure plan that lawmakers are expected to establish at some point this year.

During this period, investors have seen several prominent members of Congress who feel strongly about crypto. Many lawmakers have shown their distaste for assets, such as Senator Elizabeth Warren. But with almost equal frequency, they see bulls erupting in Senators Pat Toomey and Ron Wyden. Interestingly, the issue has not yet become entirely partisan; MPs on both sides of the aisle speak for and against the industry.

Crypto lobbyists have also become a force in the political landscape following the construction hype. The Blockchain Association, for its part, is emerging as one of the biggest crypto-centric lobbyists, surging after Congress passed its tax reporting provisions last year. In addition, FTX CEO Sam Bankman-Fried has personally contributed to the campaigns of pro-crypto candidates. He is expected to spend more than $1 billion in campaign finance during the 2024 election cycle.

Crypto News: Tech Experts Try To Deter Crypto Bulls In Congress

Clearly, the industry is gaining ground among the most powerful individuals in the country. But in today’s big crypto news, tech pundits on the other side of the debate are taking the industry to task. They warn lawmakers against falling under the influence of this increasingly lucrative industry and encourage them to create sensible regulations.

A letter urging Congress to implement responsible fintech policies has been signed by 26 tech experts from some of the world’s most esteemed tech institutions and companies. Most notably, the letter includes support from Bruce Schneier of Harvard University, Microsoft (NASDAQ:MSFT) expat Miguel de Icaza and famous crypto-skeptic Molly White.

The content of the letter is short but profound. Experts are simply warning members of Congress to be skeptical when debating crypto regulations. They argue that lobbyists and others with financial interests in digital currency overestimate the security of crypto assets. They also believe that the large-scale implementation of blockchain technologies in the financial sector will deal a heavy blow to the privacy of citizens.

The letter is addressed to 12 lawmakers by name, and most of them serve on congressional committees focused on finance and banking. Also included are House Speaker Nancy Pelosi, as well as House and Senate Minority and Majority Leaders.

As of the date of publication, Brenden Rearick had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.


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