‘Americans are waiting, act now’: CMIC urges US Congress to legislate crypto

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As a seasoned crypto investor with years of experience navigating the ever-changing landscape of digital assets, I wholeheartedly support the Crypto Market Integrity Coalition’s call for action. The current lack of clarity and regulation in the U.S. digital asset market is not only detrimental to consumers but also stifles innovation and puts American firms at a disadvantage against their international competitors.

The Crypto Market Integrity Coalition urged Congress to set up a national regulatory system for digital assets prior to the conclusion of this year’s legislative session.

In a letter dated November 14, which was obtained by crypto.news, CMIC recommended that Congress should cultivate an attitude of compliance towards cryptocurrencies. This stance was emphasized due to the fact that procrastination in this area leaves consumers vulnerable and discourages innovative advancements within the U.S. market.

The letter’s message to Congress argued that consumers remain vulnerable to bad actors without regulation, and American firms will lose ground to international competitors who benefit from cleaner regulatory environments abroad. 

CMIC’s correspondence highlights that while nations such as the European Union and Japan have established digital asset guidelines, the United States is still lacking in clarity on this matter.

The CMIC is a group of 55 digital asset companies, including Coinbase, Robinhood, and Circle.

Calls for action on stablecoins and fraud prevention

A significant focus for CMIC was establishing guidelines on how to regulate digital currencies known as payment stablecoins. These stablecoins are a type of cryptocurrency that aim to keep their worth consistent, frequently tied to the value of the U.S. dollar, and they have gained popularity for facilitating transactions within the digital marketplace.

CMIC proposed that establishing formal guidelines for stablecoins would boost the usage of the US dollar in international cryptocurrency markets, providing both economic advantages and enhanced security. The letter emphasized that stricter regulations on stablecoins could minimize fraud risks and allow American consumers and businesses to utilize secure digital assets with greater confidence.

The coalition emphasized that the earlier method, often referred to as “reacting after harm,” resulted in a volatile situation.

Adopting a reactive stance allowed for spaces where unchecked cryptocurrency businesses thrived, increasing the risk of consumer fraud or financial loss in the United States, according to the letter’s assertion.

Due to the absence of action from Congress, the U.S. finds itself in a situation where it can only regulate through enforcing laws. This situation communicates strongly to those who manipulate markets and unregulated crypto firms operating offshore that they can successfully carry out fraud and misconduct as long as they manage to stay one step ahead of U.S. law enforcement agencies.

Crypto Market Integrity Coalition

A push for immediate legislative action

In simpler terms, CMIC’s letter encouraged its members to align with the ongoing bipartisan digital asset regulations being discussed in Congress. It suggested that various government departments should share the responsibility of regulating cryptocurrencies, ensuring safety and compliance within the crypto market.

“Americans are eagerly anticipating…we urge you to respond to the plea from millions of Americans for immediate action. Failing to legislate now could lead to a regrettable error, with consequences felt both domestically and internationally. The Coalition of Manufacturers and Industries (CMIC) is prepared to assist in advancing the interests of our nation’s regulated and responsible industries.

Crypto Market Integrity Coalition

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2024-11-14 20:06