FinTech law professor tells the congress that crypto should be excluded from the banking system

FinTech law professor tells the congress that crypto should be excluded from the banking system

Lee Reiners, political director at the Duke Financial Economics Center, recommended bank agencies to prevent the crypto industry from access to the banking system, while he testified on Tuesday before the Senate banking committee.

The professor claimed that Krypto had not benefited in the 14 years since Bitcoin's white paper was published.

what to do against crypto

The hearing with the title " crypto crash " examined why crypto needs a stricter regulation and protective measures to protect investors, especially after the infectious Market slump last year.

The chairman of the banking committee, sherod brown, opened the hearing with violent criticism. Call the industry on this year's no advertisements Super Bowl , in the name of Cryptocom about Matt Damon's famous advertisement: "It turns out that happiness does not favor the brave. Insider ”, he said.

Reiners followed Brown's skeptical tone and claimed that the "killer application" of crypto had still not revealed itself after over a decade.

font-weight: 400 ">" Most people simply invested in Krypto because they thought they could sell it in the future at a higher price, he said. Rather, he argued that there is numerous evidence of the damage that can cause crypto, including chop fraud, terrorism financing, circumvention of sanctions and endangerment of the climate goals of the nation.

In view of the dangers, Reiners said that he "agreed" that crypto should be excluded from access to the banking system as much as possible. However, as long as crypto remains legal, the banks are obliged not to discriminate the industry.

font-weight: 400 "> The professor recommended that the bank agencies are opened to the public in which all options are disclosed, as banks are exposed to. He also suggested that the authorities stipulate which crypto -related activities are not allowed to carry out banks - including a rule against keeping crypto in their balance sheets.

acceleration of the regulation

Linda Jeng-a former member of the SEC CFTC and the Federal Reserve-was also present to testify. Her belief in the innovative strength of crypto was more optimistic than that of Reiners - although even she admitted that it was serious in the industry in regulatory clarity.

"The congress urgently has to say goodbye to a well thought-out, comprehensive legislation that creates a federal regulatory framework for digital assets that appeals to both securities and non-value papers in this complex and nuanced area," she said.

The Senator Cynthia Lummis and Kirsten Gillibrand designed non-partisan laws last year to create fundamental standards for the proper regulation and classification of digital assets. The invoice was checked by both controller and bitcoin-bullen

.