Warren Davidson and Mike Flood, two members of Congress from the United States, have written a letter to the head of the Council of Economic Advisers (CEA) requesting an explanation for a chapter the organisation wrote for the “Economic Report of the President” that “expressed a hostile view towards the digital asset ecosystem.” The legislators made it clear that the most recent Economic report “represents a significant change in tone.”
The Whitehouse report cautioned the US Congress against passing legislation that would strengthen the connections between the cryptocurrency business and the larger financial system. The two lawmakers pointed out how, unlike the recent one, the earlier assessments had emphasised how crucial it was for the United States to continue to lead innovations in the crypto business.
On the other hand, this recent report claims that “digital assets have brought none of the promised benefits.” This claim was deemed “patently false” by the lawmakers, who also stated that “digital assets and the technology that enables them are showing their value and potential future value through numerous use cases.”
Many of the concerns raised in the report immediately came to the thoughts of crypto advocates who disagreed with the report’s assertions. When the laws that are supposed to apply start clashing, such as when a product is regarded as both a security and a commodity, the writers challenged how businesses could uphold the law.
The chapter “The Reality of Crypto Assets” in the report, which was sent in March, asserted that these assets “have brought none of the promised benefits.” The MPs said that the agency’s decision represented a shift from the president’s “Executive Order on Ensuring Responsible Development of Digital Assets,” which had taken the opposite stance.
They stated, “We are working to do our part in Congress to put forth a regulatory regime for digital assets that will allow this innovative ecosystem to thrive in the U.S. while enacting critical protections.” The authorities were criticised in the report by stating that “By taking such a hostile view towards the digital asset ecosystem, the Administration is only pushing digital asset innovation offshore.” They continued by stating that this attitude would begin drawing capital and economic growth away from the United States to the benefit of other countries.
A CBDC and the FedNow Instant Payment System would offer a better and more inclusive financial system than blockchain technology, according to the pro-crypto politicians, who questioned this claim. Even with the ongoing sceptic crypto stances taken by the government in recent times, such opposition will put the industry back into the spotlight and bring a decision quicker which can favour investors who are waiting to see a more welcoming environment in the country to flourish.