The Democrats’ split on crypto isn’t all bad news for regulation

The Biden administration just passed an executive order to increase research on crypto assets in order to regulate them, but politicians in the ruling Democratic Party remain deeply divided over digital currencies.

The lack of consensus among Democrats could mean that a progressive regulatory framework for cryptocurrencies is still a long way off – but it’s also more likely that final regulations won’t be so harsh thanks to the work of crypto-friendly representatives. The crypto community is familiar with names that pop up time and time again in the digital asset debate.

On one side are vehement anti-crypto politicians like Democratic Senators Elizabeth Warren and Sherrod Brown, and on the pro-innovation camp are Democratic Congress members Ritchie Torres and Jim Himes.

Deep operational divisions and political controversies could further delay any regulatory process in the United States.

Senator Warren recently make an invoice restrict cryptocurrency exchanges to prevent digital assets from being used to evade sanctions. However, it has been widely reported that Russia will not switch to cryptocurrencies to circumvent sanctions, even if the Russians did.

Warren has continued his battle with crypto with letters to the Treasury Department calling for further crackdowns on the industry. Based on reportshe recently criticized the banking system, adding the reference cryptocurrency:

“However, replacing an unregulated, unverified system in which fraudsters, fraudsters and terrorists infiltrate ordinary consumers and no one can tell who is on the other side the other side of the transaction is not a safe alternative.”

Fortunately, some Democratic lawmakers support the cryptocurrency industry and the innovation it will bring to the US financial system. One such policy-maker is New York representative Ritchie Torres, who has said, “The project to completely decentralize the internet and finance makes me appreciate as a deeply progressive goal. ” before adding:

“You should never define any technology by its worst use… There’s more to crypto than ransomware, just like having more money than money laundering.”

Related: Biden Executive Order Promises Great Things for Crypto Industry – Finally

Democrat Josh Gottheimer, who represents New Jersey, has promoted plans to regulate cryptocurrencies and stablecoins. Last month, he gave Stablecoin Innovation and Protection Actstated at the time that “the expansion of cryptocurrencies offers enormous potential value to our economy.”

The four Democrats put their names on a bipartisan letter sent to the Securities and Exchange Commission on March 16. Gottheimer and Torres of course signed, along with Florida representatives Darren Soto and Massachusetts congressman Jake Auchincloss.

Republican Congressman Tom Emmer drafted letterwas also signed by three other Republicans, addressing the problem of overloading crypto companies with excessive reporting requirements and increasing industry oversight. The Democrats’ split on crypto isn’t all bad news for regulation

Fry Electronics Team

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