LIVE BLOG: House Meets on Crypto Regulation

10:37 a.m. Brooks made the claim that the current regulatory regime is driving legitimate activity offshore: “Can anyone explain … why Fidelity Investments, one of America’s best-known investment advisors, had to go to Canada to offer a bitcoin ETF?”

He pointed to other activities legal in locations like Germany to further emphasize this point.

10:35 a.m. Bitfury Group CEO Brian Brooks (/former Binance US CEO/former Acting Comptroller) briefly outlined Bitfury’s business (i.e. mining) before pivoting to what he sees as the key issues in the regulation conversation. He quoted from his written testimony directly here, asking about securities enforcement without allowing registration, treating stablecoin issuers as banks but not granting them bank charters, etc.

10:32 a.m. FTX CEO and founder Sam Bankman-Fried emphasized the role he sees cryptocurrencies playing in providing financial services to un/underbanked individuals, pointing to the stated goal of disintermediation in his remarks.

10:30 a.m. Circle CEO Jeremy Allaire summarized his written remarks in his opening testimony: He briefly summarized the history of stablecoins and the role they can play in financial services. He pointed to what Circle in particular has been doing, including a mention of USDC’s backing.

10:16 a.m. And yes, crypto twitter got a shoutout lol

10:15 a.m. Rep. Patrick McHenry (R-N.C.), the ranking member, calls 2021 “the year of cryptocurrency,” adds that much of the sector is already regulated, even if the regulations that exist are “clunky.” He warns against overregulating the industry in his opening statement.

10:14 a.m. Rep. Maxine Waters (D-Calif.), the committee chair, kicked off the hearing with “today’s hearing is part of this Committee’s ongoing [effort]” to understand crypto and the issues around it. Much of her opening statement resembled the hearing memo, outlining both what FSC has done this year on crypto as well as some of the key issues to be discussed.

10:02 a.m. While we wait for this hearing to get started, here’s a quick preview I wrote up for CoinDesk. The House Financial Services Committee also published a memo outlining the broad focus for today, which is worth a look as well.

10:00 a.m. The House Financial Services Committee is meeting to discuss crypto trading platforms and stablecoins today. CoinDesk’s Nikhilesh De will liveblog the hearing.

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