When it comes to the development and regulation of cryptocurrencies, many in Washington have been producing more heat than light. By all accounts, the crypto industry and its dozens of digital asset applications are the next wellspring of innovation for the American economy. As these developments approach the cusp of mainstream adoption, what is truly needed is a clear regulatory framework at the federal level that gives developers the ability to move forward with confidence. That will take Congress and regulators to be thoughtful, and careful, from here onward.
I recently discussed the seriousness of these concerns ahead of a mid-July hearing convened by the House Financial Services Committee to examine Libra, Facebook's foray into cryptocurrencies. It was important that Chairwoman Maxine Waters hold the hearing and raise questions regarding the consequences of the social media giant's plans, but some others on Capitol Hill went overboard in attacking the whole industry.