Top crypto executives urge for clearer industry rules

• Executives emphasized for careful rules rather than forcing the existing regulations on them

• Regulators have been worried about the rapid growth of cryptocurrencies and stablecoins

Top crypto executives from six major companies on Wednesday asked Congress to provide clearer rules for the rapidly expanding industry.

The executives from six major cryptocurrency companies including Coinbase and Circle have emphasized for careful rules rather than forcing the existing regulations on them.

"Without tailored legislative solutions that are openly debated with public participation, the United States risks unnecessarily onerous and chilling laws and regulations," warned Alesia Haas, chief executive of Coinbase Inc.

The hearing of the U.S. House of Representatives Financial Services Committee was the first one where cryptocurrency leaders talked to U.S. lawmakers about the regulations on the industry.

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Others who testified included Circle CEO Jeremy Allaire, FTX Trading CEO Sam Bankman-Fried, Paxos CEO Chad Cascarilla, Stellar Development Foundation CEO Dennelle Dixon and BitFury head Brian Brooks.

Regulators’ worries

Democratic Representative Maxine Waters said proper supervision was questioned and also pointed out towards concern around Facebook’s stablecoin plans due to its global reach.

Regulators have been worried about the rapid growth of cryptocurrencies and stablecoins, fearing they could be a risk to the financial system if not monitored properly. Some lawmakers are even worried that the products could be used for illicit purposes.

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Executives said that they would prefer clarity over the regulations helping the industry to grow, and warned the overly restrictive rules could be counterproductive.

They said the growth of the industry shows strong investors’ demand and that the industry should be supported by clear rules.

Picture Credits: Reuters