Tech trade group Chamber of Progress has called on members of the US Senate and House of Representatives to clarify regulations in the area of crypto to prevent companies from leaving the country.
In a letter Wednesday to eight House and Senate committee chairs, House Progress Financial Policy Director Janay Eyo urged Congress to consider moving forward on “ fund to secure the future of our country’s crypto industry,” citing concerns about jobs and the country’s position as a leader in global finance. According to the trade group, government leaders, including those of the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal Reserve and the Biden administration, have called on Congress to lead the establishment of a regulatory framework for digital assets.
“Without congressional action, a lack of clear rules and regulations has contributed to the current instability in crypto markets,” Chamber of Progress said. “Some of the failed companies have taken advantage of a lack of clear market regulation. Industry leaders have warned that smaller exchanges offering generous margin lending are quietly becoming insolvent.
The group added:
“It is imperative that Congress act to ensure investor protection by providing rules of conduct, which, in turn, would help weed out bad actors from the industry.”
For the crypto industry, the combination of an unclear regulatory environment and a market downturn has led to layoffs, bankruptcies, and even the possibility of moving overseas. To save jobs in the United States, Congress must act.
Read our full letter here: https://t.co/FUaS28KJNf pic.twitter.com/tXzJMwZrpy
— Chamber of Progress (@ProgressChamber) July 20, 2022
According to Chamber of Progress, the lack of regulatory clarity in the United States could cause companies to “seek greener pastures abroad”, potentially threatening the country’s interests by forcing many high-paying, remotely accessible jobs that have largely survived the pandemic overseas. Crypto firms like Ripple have considered moving their headquarters outside of the United States, and others have expanded their offerings to regions such as the Middle East.
“The increase in the number of countries developing crypto regulatory policy should motivate the United States to move quickly to consider relevant legislative proposals before Congress,” the group said. “It’s time to move the crypto policy debate from ‘we need regulation’ to ‘what are the impacts of specific regulatory proposals?’
Related: US Department of Commerce asks digital asset industry for input on Competitiveness Framework
Unlike the United States, the European Union has passed legislation to harmonize cryptocurrency regulation among EU member states, called the Markets in Crypto-Assets Framework, or MiCA. On Wednesday, the UK government also introduced its Financial Services and Markets Bill which included regulations on stablecoins.