The leaders of the top Wall Street firms, along with venture capital titans met with lawmakers in Washington to ask for more cooperation and clarity around regulations. If the leadership in Washington does not provide a working framework and clarity, Wall Street firms are suggesting that jobs will move overseas – blockchain, in their view, is being ignored. And when we look at China, Japan and other leading economies, there seems to be a clear and well defined framework, a structure if you will, in place that paints a clear picture of strategy. The US needs more clarity.
While the US stays neutral or rejects blockchain support, the world seems to be in the fast lane with regards to embracing this new technology. Despite shutting down crypto-exhcnages to stop illicit and bogus cryptocurrencies, China is embracing blockchain. “The competition around the world is real. But there’s still time and opportunity for the US to be a leader here,” says Joyce Lai, a lawyer in blockchain technology.
The main message from the cryptocurrency industry – Congress must regulate soon.
Representatives from Nasdaq, the US Chamber of Commerce, Fidelity, State Street, and Andreessen Horowitz filled a room in the Library of Congress to make their case. More than 50 industry participants gathered on Capital Hill for a round table hosted by Rep Warren Davidson, R-Ohio. Davidson prepares to introduce a bill later this fall.
One ongoing complaint is the US Securities and Exchange Commission which uses a 72 -year-old law that employs the “Howey Test” which comes from a 1946 US Supreme Court decision to determine whether a cryptocurrency is a security. Some feel that this method is outdated.
For now, the SEC has no intention of changing its stance to Congress may be the next entity to challenge laws or enact new ones.