Top executives from cryptocurrency companies have highlighted the need for clearer rules for the thriving $3 trillion cryptocurrency industry. Appearing before the US Congress, on Wednesday, they warned that tougher restrictions would drive the companies to foreign countries.
The executives, including Alesia Haas CEO of Coinbase, called for careful, bespoke rules. Without tailored legislative solutions, Haas said the US risks unnecessarily onerous and chilling laws and regulations.
“Coinbase agrees with the goal of the IRS and Congress to ensure individuals and businesses pay taxes they owe. Central to achieving this goal is recognizing the unique nature of crypto technology and creating parity with other asset classes,” the executive said. “Coinbase has developed a number of resources to help our customers meet their tax obligations, including a tax resource center and partnerships with both Turbo Tax and Cointracker to help customers accurately calculate their taxes owed.”
Jeremy Allaire, CEO of Circle, told the US Congress that policy frameworks need to support an open and competitive playing field, and allow new technologies to flourish. Denelle Dixon, head of the Stellar Development Foundation, said they have started to see how innovation can be hampered in other parts of the world when regulators and lawmakers react quickly and arguably prematurely to address perceived risks around cryptocurrency.
“Let’s not hamper innovation in the United States, which would have a real impact on the ability to make full use of this technology elsewhere. Let’s learn from the past, let’s take down the walled gardens, let’s get rid of the friction, and let’s create an open loop for innovation here in the US.”
However, Maxine Waters – the Chairwoman of the House Committee on Financial Services said she is worried cryptocurrency markets have no overarching or centralized regulatory framework. This leaves investments in the digital assets space vulnerable to fraud, manipulation, and abuse, she said.