US financial advisors support the Crypto-Currency Act of 2020 and fear that the obstructionism of industry players may hinder its approval.
The Crypto-Currency Act was promoted by Arizona Congressman Paul Gosar and proposes a broad classification framework for cryptocurrencies and digital assets while entrusting an existing federal agency with the task of monitoring the markets.
The aim of its promoters would be to bring cryptocurrencies into a regulated environment.
However, this proposal was not very warmly welcomed by the American crypto industry, which either dismissed it or criticised it. On the contrary, for financial advisors and institutions, these new rules would be a step towards legitimizing digital assets as a viable alternative for investors.
It is precisely this coldness that has caused some disappointment among financial advisors, who have expressed concerns that this might mean opposition from the crypto lobby towards the approval of the Crypto-Currency Act.
For example, the CEO of Sarson Funds, John Sarson, said:
“We were disappointed that CoinDesk’s coverage of the bill did not accurately represent broad industry sentiment”.
He also pointed out that the Blockchain Insider group, a forum of 100 cryptocurrency professionals, had enthusiastically supported the legislation.
In fact, he reveals that the Blockchain Association, another organization that calls itself the “unified voice of the blockchain” and supported by the same company that owns Coindesk (Digital Currency Group), is actually promoting its own bill on cryptocurrencies, called The Token Taxonomy Act, currently stalled in committee.
Jahon Jamali, Managing Partner of Sarson Funds, added:
“There needs to be some level of transparency in digital asset blockchains. The Treasury Department archaically tracks dollar bills for anti-fraud, anti-terrorist funding, and anti-money laundering activities – activities that harm our society and weaken the market. Serious investors need to know that those safeguards exist with cryptocurrency and in the American financial system. As other nations pass legislation to normalize digital assets, our laggardness in embracing cryptocurrencies is becoming a vital national security concern. The blockchain wars have started and China is winning”.
To tell the truth, this seems more like a clash of lobbies, all within American politics, than a serious discussion about how digital assets could be regulated to protect consumers or retail investors.
In fact, lobbies usually pursue their own interests, and certainly not those of citizens, so these controversies seem to be basically just part of the game of the parties in an attempt to influence, in one way or another, the drafting of these rules.