In a bid to advance America’s position in the digital finance landscape, the Chamber of Digital Commerce is urging the U.S. Congress to expedite the creation of a comprehensive legal framework for cryptocurrencies.
In a move aimed at securing America’s place in the burgeoning world of digital finance, the Chamber of Digital Commerce is urging Congress to fast-track the development of a legal structure for cryptocurrencies.
The advocacy group has proposed the establishment of a “Digital Asset and Blockchain Technology Solarium Commission”, a strategic initiative that would be tasked with creating an extensive policy package to govern digital assets and blockchain technology.
The Chamber of Digital Commerce expressed concerns in its statement on May 18, regarding other nations, both allies and adversaries, making substantial advances in blockchain and digital asset technology.
This, they fear, threatens to undermine U.S. leadership in next-generation finance, trade, and business while the country remains relatively idle, which could lead to the industry shifting overseas.
There is bipartisan agreement amongst lawmakers that crypto-focused businesses are leaving the U.S., but there is discord as to why this is happening.
Representative Stephen Lynch, a democrat from Massachusetts, argued during the House Financial Service Committee Digital Asset Subcommittee hearing that crypto companies, especially stablecoin issuers, are moving to areas with less regulation in a “race to the bottom.”
In Lynch’s view, these firms are motivated by a desire to “escape regulation.”
On the other hand, some lawmakers such as Warren Davidson, a republican from Ohio, posits that the reason crypto firms are moving overseas is actually a quest for more regulatory clarity due to the lack of precise industry oversight in the U.S.
In highlighting the initiatives other countries are undertaking in the realm of crypto policy, the chamber noted that South Korea has poured nearly $45 billion into its “Digital New Deal.”
Japan, on the other hand, is significantly further ahead in terms of stablecoin legislation compared to the U.S., according to the chamber.
The chamber stressed that a commission would foster collaboration and leadership from government, industry, and academia for the growth of the industry.
In anticipation of the legislative push, the Chamber of Digital Commerce has prepared draft legislation, which is expected to be released soon, with backers already “lined up,” according to Cody Carbone, vice president of policy at the chamber.