Gerard Scimeca – Chairman, CASE
July 5, 2021
Imagine trying to make a purchase online from a familiar website, only to be thwarted by a new policy announcing it only accepts Japanese yen or Chinese yuan. Or consider a vending machine that repeatedly spits back your crisp, clean dollar as unrecognizable. And what may be your reaction if you check your bank statement, only to see your balance represented in euros?
As odd and far-fetched as these dystopian scenarios may seem, they illustrate the dangerous path our nation is following in its befuddling and stone-age approach to regulating innovative digital assets like cryptocurrency. Since 2019 alone, transactions in cryptocurrency have risen by 300 percent, and the pace is accelerating because of its speed and convenience in bridging currency conversions in a global economy. Innovation brings volatility and speculation in any asset class, but the underpinning technology is proving its long-term staying power.
While other nations are promoting and welcoming the benefits of blockchain, the U.S. is doing just the opposite, handcuffing investors and businesses alike through a myriad of confusing, complex, and wholly inconsistent enforcement stockades while giving no regulatory clarity. If not addressed, it could spell disaster for America’s ability to compete and transact in the currencies of tomorrow.
Especially concerning is the consistent interference from the Securities and Exchange Commission (SEC) in its seemingly random affinity for treating some crypto as securities, making them subject to suffocating securities regulations and oversight. This bungling is perfectly illustrated in a current lawsuit, SEC v. Ripple Labs, which has potentially far-reaching implications related to the power of government regulatory authorities. But at its core, it serves as a reminder that the United States continues to be outpaced by other developed economies in establishing a safe and secure regulatory framework for digital assets.
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