Bitcoin, Crypto currency, Blockchain

Hearing before the US Congress to ICOs: Deputy unpack all of the stereotypes

047d28cfde658feb9504b1119962bfe2 - Hearing before the US Congress to ICOs: Deputy unpack all of the stereotypes

Like on Sunday already announced, took place yesterday, Wednesday, once again a hearing before the U.S. Congress on the topic of crypto-currencies and ICOs. In the hearing before the sub-Committee of the House of Financial Services many of the deputies took out all the clichés that exist about crypto-currencies.

The hearing lasted a little over two hours, and wandered around some of the issues. Such as CNBC the headline, however, it is at times a veritable “crypto-Bashing”. The most striking statements we would like to summarize at this point. Input should also be mentioned that not only negative and hateful voices have become loud.

The opinion was quite divided. In addition to the partly non-factual statements, it was also important that there is a lack of a uniform Federal scheme for the regulation of the market.

Opinions of the members of Congress

Congress member Brad Sherman, said:

Cryptocurrencies are a crock. They allow a few dozen men in my district to sit in their pajamas all day and tell their wives they’re going to be millionaires.

The cliché of all clichés, it is hardly. Sherman was but the clichés are still a long way to go, and explained that Bitcoin terrorists, Criminals and tax evaders will be used. The term of the ICO would be used by the industry to create the Association to the legitimate financing instrument of the Initial Public Offering (IPO). This is a “fraudulent happiness will system game without social benefits”, before the population should be protected. Also, “cave of Bitcoin the USA” and the US Dollar and trimming the US $ 50 billion the Federal Reserve.

In a Reddit noted, should not sit Sherman but too far out of the window. His main campaign supporters, Allied Wallet, a credit card company that Offshore in 2010, 13.3 million US-Dollar gambling and money laundering was sentenced.

Bill Huizenga, Chairman of the sub-Committee stated that he could not accept that investors will receive adequate protection on the part of regulatory authorities. He referred in his testimony to a not-yet-published study, mit Professor Christian Catalini, who had come to the conclusion that in 2017, for example, 270 to 317 million dollars in fraud-ICO.

Committee member Carolyn Maloney explained that they are working on a set design, the “crypto-currencies and not the technology” would regulate. In addition, they also pointed to the lack of protection for the investors:

They’re pouring their life savings into virtual currencies and they stand to lose a lot of money when this bubble eventually bursts.

Maloney to handle the cliché of the financing of Terrorism, and asked the Preloaded Mike Lempres, Chief Legal and Risk Officer of Coinbase, which takes Coinbase to stop extremists and white nationalists, in order to Finance their activities with Kryptos. Then, Lempres said that Coinbase will take this issue very seriously and special provisions. The Blockchain technology, all transactions can be tracked continuously, and by means of analysis tools analysed in order to identify this group of people.

Tom Emmer, a member of the house of representatives and a member of the Congressional Blockchain Caucus took in the contrast, a totally different opinion.

This is something that Democrats and Republicans should be celebrating here in Congress not going ‘oh my gosh, this is terrible, we don’t understand it’. I realize there has to be some regulation but there needs to be a balance.

He fast the consultation, from our point of view, very suitable. Part of the reason seemed to be the deputies to a lack of comprehension for crypto-currencies. The discussion degenerated at times into a “Bashing” of crypto-currencies, without reference to facts.

In the case of all stereotypes and unproven assertions, a point was made during the hearing. While centralized companies like Coinbase can be controlled by governments, is not to stop the underlying, decentralized Blockchain technology is very difficult to and controllable.

Whether and to what extent, the hearing had currencies have an impact on the massive price drops (almost) all the Crypto in the last 24 hours, it is hard to assess. At the beginning of February, the consultation with the SEC and CTFC in front of the US Congress was still a spark for the rest of the cryptocurrency market.

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