The US government is failing us regarding fintech and blockchain regulation.
Devoid of any regulatory framework in the last four years when we are talking about the development and growth of crypto products. Innovators in the fintech and blockchain industries have the ability and vision to create products that solve real problems for everyone, from individuals to large banks, but without a clear path, these products fail to grow and grow to their fullest Capacity scales do not survive.
Regulation should not be a guessing game. Since 2019, when the Securities and Exchange Commission declared that neither Bitcoin (BTC) nor Ethereum (ETH) are securities, the industry is at a standstill. Without clarity, blockchain innovation would be limited to just two coins – the industry is much larger than this. The lack of regulation affects the immense potential that crypto and blockchains provide.
If we know the rules of the game, we are playing, we can do what we do best: innovation.
A new administration presents a new opportunity for elected officials across the political spectrum to develop clear policies and regulations, enabling crypto to enable banks, fintechs, and corporations to achieve efficiency and provide a better customer experience Enables to use.
We can learn lessons from recent history here. In 1991, we saw the passage of the High Performance Computing and Communications Act (HPCCA), a bipartisan effort led by Senator Al Gore and signed into law by President George HW Bush.
This law paved the way for companies such as Amazon, eBay, Yahoo, Google and others and made America an early Internet leader. By 1993, we saw the introduction of web browsers, and soon after that, in 1994, the dot-com era began which made America a symbol of innovation.
The browser changed everything. This creates new jobs, new economic opportunities and new categories in technology that we could not have predicted 30 years ago. Looking at the top 100 Fortune 500 companies in 1991, IBM was the only technology company to have technology scarcely on a standing radar. By 2020, this is a completely different picture, with the list completely dominated by technology giants such as Microsoft, Apple, Alphabet, Facebook and Salesforce.
Technology companies have contributed nearly three million jobs in the top 100, with many having market value. Despite an unconventional year, we continue to see successful technology IPOs such as DoorDash, Snowflake, Asan and Palantir.
Products and services that we carry now such as Google, iPhone, Uber, Salesforce, Spotify, Postmates and more were made possible by HPCCA. We now have another opportunity to create a bipartisan effort focused on crypto innovation, with a public and private sector support to ensure a clear regulatory framework. The regulation will make it easier for innovators to manufacture new products that keep the United States in competition with other countries and attract more investment.
There is no dispute that the adoption of crypto and blockchain is increasing. Major companies including PayPal, Square and Robinhood are bent on cryptoing and pushing it into the mainstream. With the verification of these brands, interest in the utility of cryptocurrency and the ability of crypto to better serve businesses and their customers continues.
Leading crypto companies such as Wave, Coinbase, Gemini, DCG and Channelis are currently based in the United States. However, unclear regulation will prevent new entrepreneurs from innovating in the United States. Although other countries move forward with a defined regulatory framework, it is possible that we will forgo new entrepreneurs and companies in the US to set up shop in areas where the rules are clear.
If we know the rules of the game, we are playing, we can do what we do best: innovation. We’re only at the beginning – developers can build on open-source technologies, entrepreneurs can launch new companies and develop new products, and investors can invest in those companies.
We want the most innovative cryptocurrencies and blockchain companies to be built and developed here in the US, where they can create value and opportunities for American citizens. Like the early days of the Internet, we do not know what the industry will look like in 5–10 years, but with a flexible framework the opportunity is massive.
There is a huge opportunity for the Biden administration to influence new policies and new legislation and provide clear guidance that will accelerate innovation in fintech and crypto for many generations to come. Can administer:
- Create a National Digital Banking Licensing Charter (similar to) Digital Banking Charter of Singapore), To streamline the process for fintech to apply for cryptocurrency, loan and payment licenses. Companies in the US today are left to apply state-by-state for licenses, which cost millions of dollars in legal fees and completion.
- Define a clear classification for digital assets, derivatives (created through smart contracts) and fixed stocks.
- Build a bipartisan public and private sector group led by tech-savvy leaders like Andrew Yang to collaborate on landmark legislation that HPCCA has done for fintech for Internet companies.
- Appoint an SEC chair who understands how to truly advance innovation while protecting consumers and markets. The pro-innovation lip service we are getting from this SEC is – lip service. Every cryptocurrency project that the SEC has touched, went bankrupt in the US or left useless tokens.
Even though policy makers and regulators decide to approach the issues facing our industry, we need to continue working with the government to ensure that people using fintech and blockchain products are increasingly Increasing numbers continue to receive best-in-class solutions with appropriate consumer and market protection.
It is clear that this technology is here to stay, and I hope that the chosen leaders will recognize the power that has to influence the progress of the financial industry at large. Similar to the HPCAA, smart regulation can protect our consumers and markets, while allowing proud American companies to create life-changing innovations.