The US House of Representatives is taking aim at the Biden administration’s “toxic” approach to cryptocurrency. According to a group of American politicians, the administration’s tactics are suffocating the young industry, posing a serious threat to its future growth. In a scathing new memo, the House of Representatives states that the burgeoning crypto industry is worth over $1 trillion, and should not be stifled by excessive regulations and government overreach.
A Thriving Industry
Despite the industry’s rapid growth and increasing popularity, the memo argues that the Biden administration has been overreaching in its regulatory efforts. The House of Representatives writes mostly positively about the crypto industry, saying, “Today, the total market for digital assets is worth about $1.06 trillion, where Bitcoin and Ether account for approximately 60%. The digital asset ecosystem, though still in its infancy, encompasses a wide array of companies and operations that utilize distributed ledger technology.”
However, the politicians in the House of Representatives argue that the industry is now at risk because of the Biden administration’s development of strict regulations over the past two years.
Clear Guidelines Needed
The Republicans who wrote the memo are calling for collaboration between authorities and requesting that legislators establish clear guidelines for the industry. “Many of the actions of the Biden administration are characterized by an overreach of originally granted powers,” the memo further states. According to the House of Representatives, they are therefore often exceeding their authority.
Impact on Bitcoin and Cryptocurrency
The crypto market has been under siege in recent months, with the SEC coming down hard on enforcement and targeting several big names in the industry. The ban on Paxos issuing new Binance USD (BUSD) stablecoins, or the decision to shut down Kraken’s staking program without any warning have left many in the industry feeling threatened and unsure of the future.
These are both decisions that come virtually out of nowhere for a large part of the industry. Clarity on regulatory issues is not only necessary, but also critical for Bitcoin and the rest of the crypto market to continue its upward trajectory. The Biden administration must heed the calls of the House of Representatives and work with industry leaders to ensure that the regulatory framework is fair, effective, and conducive to growth.