Blockchain sectors have the potential for economic growth

Dear Editor,

The crypto and blockchain sectors have enormous potential for economic growth and technological advancement. To fully realize the sector’s potential, we must establish regulatory clarity to ensure consumer protection and ensure the industry operates within ethical and legal boundaries.

Although the United States has been slow to adopt meaningful regulation in this area, we are seeing increasing bipartisan recognition of the need for regulatory clarity around digital assets. The House of Representatives, with bipartisan support, passed the Financial Innovation and Technology for the 21st Century Act (FIT21), a bill that would establish a market structure for regulating digital assets. Additionally, the bipartisan House and Senate passed H.J.Res. 109, a resolution seeking to invalidate the SEC’s overbroad accounting regulation SAB 121, due to concerns about its harmful impact on consumers and financial institutions. This bipartisan support underscores the importance and necessity of FIT21 to provide clear rules and standards for this emerging industry.

There are several key areas where regulation is critical to the cryptocurrency and blockchain industry.

First and foremost, it’s important to protect consumers. Cryptocurrencies and transactions can be complex, making them susceptible to fraud. Regulations that protect consumers from fraud will ensure that this new sector can be used with confidence for legitimate purposes. A second clear demarcation is needed between the SEC and the CFTC regulators to create a streamlined and effective regulatory environment to foster innovation and regulatory certainty in the digital asset space. The Act’s registration, compliance, and oversight provisions help enhance market integrity by ensuring that digital asset exchanges and custodians operate to strong—and clear—standards. In addition to protecting individual consumers, regulations that support cybersecurity more broadly will ensure that users and institutions are protected from cyberattacks when using this new technology.

FIT21 and the regulations it outlines are not just about regulation, they are a critical part of keeping America globally competitive in this new sector. A strong framework of clear and well-established regulations will not only protect consumers and institutions, but will also attract talent and investment to our country. This, in turn, will support continued innovation and entrepreneurship, supporting jobs and growth in America.

To realize these benefits, FIT21 must cross the finish line, and the next step is Senate passage. I hope Minnesota Senators Smith and Klobuchar will see the benefits of cryptocurrencies and blockchain technology and support FIT21. This bill will ensure that America remains a leader in technological innovation.

Alexander Cutchey, Marathon Digital Holdings

Manager of Government Affairs, St. Cloud

This article originally appeared in the St. Cloud Times: Letter to the Editor: Blockchain Sector Implementation Could Be Fruitful