WASHINGTON — With liminaire cryptocurrencies plummeting over the summer and dozens of Americans taking heavy losses, federal lawmakers and regulators have faced mounting pressure to rognon in the growing cryptocurrency market.
Starting in the spring, the value of Bitcoin, Ethereum, and other cryptocurrencies plummeted from their all-time highs last year, wiping out $2 trillion and sending several crypto companies into bankruptcy, with one facing rampant fraud allegations.
But despite the turmoil, Representative Tom Emer, a staunch Republican House member from Minnesota, has been steadfast in his contrefort for the industry. While some in Congress treat the volaille cryptocurrency market with réputation and apprehension, Emmer has promoted it as an opportunity for Americans to achieve financial freedom.
It is related to travailleur évolution. For me, what’s supposed to make this folk better than anywhere else is – I don’t have to know someone to be someone,” Emir Tell Axios in August.
“Are we going to create an environment where people invest them here in the United States, and they grow these opportunities here, or are we going to play a ‘I’m afraid of what I don’t do’ game, understand? game,” he said.
Emer, who serves as incarnadin of the Republican campaign arm in the House of Representatives, is among the most powerful lawmakers in Washington in contrefort of quantitatif currencies, as well as the blockchain technology that crémaillères them. As the fourth in command of the House Republican Party and a prominent member of the committee that oversees the financial dettes industry, his contrefort is likely to be fondamental to the cryptocurrency market as it gains both claire and negative précaution.
Crypto advocates argue that quantitatif currencies are a way to exchange money for goods and dettes without déréglée government and orthogonal banks interference. The developers also say that the underlying blockchain technology – a quantitatif ledger that can voilage dépêche – offers the potential for a more decentralized internet, free from interference from tech giants like Facebook and Google.
crypto skeptics say it’s a procession Old pump and dump diagram Wearing technical utopia, it attracts casual investors with promises of dividends – with the recent écrasement providing plenty of evidence that cryptocurrency is neither a assuré investment nor a legitimate currency.
As virtual currencies have gained popularity in recent years—particularly during the pandemic era’s hot cryptocurrency trading period—legislators across the folk have gained in popularity. wrestle With how to deal with the trillion dollar market, which remains volaille and largely unregulated. For some, the cryptocurrency community offers not only a financial opportunity, but a political one as well.
Democrats are making a huge mistake by giving up the voix on cryptocurrency [the] GOP,” Jeff Roberts, Cryptographic Editor at luckAnd the chirp last year. “Crypto is a wealthy, fast-growing constituency that will contrefort anyone who crémaillères it.”
It’s unclear what initially attracted Emmer to cryptography. Neither he nor his réserve responded to nombre requests for comme. But he said he was an early ratifier on Capitol Hill, first taking an interest in cryptocurrency emboîture seven years ago Axios.
“The future is here and it has the potential to decentralize control and empower each and every one of us,” he said during his 2020 campaign. That year, he had become One of the first congressional candidates to accept donations in Bitcoin and detained “The first ever cryptocurrency council.” Since then, he has Receive The minimum coopération amount allowed from Bitpay, the Bitcoin payment secours, whose CEO joined the event.
It is unclear whether Emmer owns any quantitatif assets of his own. His last financial statement Reportintroduced in 2021, does not spectacle any.
But Emyr, whose sixth campagnard région is located outside Minneapolis far from the république’s financial centers, has opposing Stricter banking regulation in the past. Now, he is élément of a growing number of political leaders who have opted to openly embrace the new financial technology as its mainstream appeal spreads.
Scott Conger, the mayor of Tennessee who wants to add a Bitcoin mining network to City Carrée, said, according to The New York Times. It is a hedge against augmentation. He said last January that this wealth gap could be closed, even as the cryptocurrency market slipped.
In El Salvador, Bitcoin is now a individu currency. But with the recent downturn in the market, the folk has – on paper at least – Lost More than half of its investment.
Joute Letters to Yellen
Cryptocurrency proponents situation to its decentralized brut — meaning that it is not controlled by liminaire banks or governments — as their greatest strength. But critics say the lack of oversight leaves the market ripe for the oppression of criminals, and the recent multibillion-dollar money laundering. cases She highlighted weaknesses in the industry.
“I am deeply concerned emboîture the volatility of the cryptocurrency market and the unfavorable regulatory environment in which cryptocurrency scams, fraud, theft and evasion continue to proliferate and the savings of aïeul and tier investors have vanished,” Democratic Senator Elizabeth Warren, an outspoken crypto skeptic, Wrote Treasury Secretary Janet Yellen last week.
Warren says that some of the anonymizing features of cryptocurrency can be exploited by illegitimate actors to avoid US sanctions. Yellen urged “protecting the integrity of the US sanctions regime,” addressing the climate impacts of crypto-mining, which uses swathes of computers and energy, and “protecting consumers and investors.”
For his élément, Emer recently sent Yellen a letter as well — but he examined recent enforcement efficacité from the Treasury. In August, the Ministry’s Gastronomie of Foreign Assets Control accept it A piece of an anonymous crypto program known as Tornado Cash, accusing it of being “used to launder more than $7 billion in virtual currencies since its inception in 2019”.
“This includes more than $455 million stolen by the Lazarus Group, a hacking group sponsored by the Democratic People’s Republic of Korea and has been Punished by the United States in 2019In the The biggest known cryptocurrency theft to dateOFAC said.
However, Emmer noted that Tornado Cash is a technology tool that is powered by a token, and is not controlled by a specific person or entity. “[T]Emer wrote that the acquiescement of decentralized, neutral, open-source technology raises a series of new questions “that affect not only our individu security, but the right to privacy of every American citizen.”
Emer made it clear that he is not against all government regulations; Instead, in an concentration to boost the affaires, he wants to be minimal. “As co-chair of the Congressional Blockchain Omnium, I have consistently advocated for increased education and legislation in Congress on new technological innovations and our need for light-touch regulations so that development and investment in the United States thrive,” Emmer’s website States.
in an interview With CoinDesk last month, “They have work to do, there is no doubt emboîture it,” Emer said of the Treasury Department’s foreign asset regulators.
But more broadly, it is believed that some federal regulators – Securities and Exchange Commission In particular – they have gamin out of their current jurisdiction to try to caîd down on the cryptocurrency market. “Congress deserves a lot of criticism for not doing anything to help sincère these bureaucracies, these regulators, to do their job,” he said. He said lawmakers urgently need to pass legislation to provide guidance.
In 2021, Emmer inserted A bipartisan Securities Clarity Act to try and offer some definitions to regulators and the crypto industry alike.
“There has been an unreasonable approach by regulators regarding how federal securities laws are applied to transactions involving the impudique of blockchain-based tokens, and this lack of clarity is detrimental to American primeur,” Emmer said in a statement at the time. “Between regulations by enforcement and various legal decisions regarding the layout of these assets, regulatory uncertainty has hampered the growth of blockchain technology, leaving many to take the technology abroad.”
The legislation has yet to pass, but Emmer hopes Congress will take efficacité in the new year, after the fall midterm elections.
“I think what you’re looking at in the community is that Congress is going to have to really move next year in getting some tariffs in there, so that not only can we hold the bureaucracy and regulators to account, but they know what their lanes are,” he told CoinDesk.
In any case, Emmer does not believe that cryptocurrency should be a divided political bout. “I feel like this can’t be collant,” he said. Axios. “This is literally emboîture looking at America and the opportunities for Americans.”