On Friday, Republican Sen. Mike Lee of Utah outlined three outcomes that could endanger the nascent cryptocurrency industry: (1) the creation of central bank digital currencies, and (2) patchwork by states. regulation, (3) coercive federal regulation;
Speaking at the Permissionless III crypto conference in Salt Lake City, Lee said three possibilities pose significant risks to the burgeoning digital asset sector. Lee and fellow Republican Rep. John Curtis have been particularly critical of federal and state regulations on digital assets, likening them to financial surveillance that could stifle the cryptocurrency industry.
“Instead of chasing you, we should protect you,” Curtis said of the government’s role.
Mr. Lee has been a vocal defender of the status of cryptocurrencies as a medium of exchange and criticized the classification of cryptocurrencies as securities. This is a key issue for the U.S. Securities and Exchange Commission, which has filed multiple lawsuits against the industry for failing to register virtual currency products as securities. Security. Cryptocurrency is not a commodity. Cryptocurrency is used as a medium of exchange,” Lee explained. “I don’t even think capital gains should be taxed on a transfer,” Lee said.
The speech also criticized central bank digital currencies (CBDCs), which governments around the world are exploring as a way to streamline payment systems and reduce the volatility and fraud associated with traditional cryptocurrencies. Although China’s CBDC program has already been launched, the US Federal Reserve is still assessing the potential and feasibility of CBDC in the domestic context, and the cryptocurrency industry has mainly seen CBDC as a threat to economic freedom. It is considered that
