Opinion: GOP crypto maxis almost as bad as Dems’ ‘anti-crypto army’

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Crypto doesnt need to be “a fraud versus the dollar.” It can be a powerful tactical possession, but just if U.S. crypto policy truly puts America initially.

Most significantly, U.S. officials should acknowledge that extending dollar supremacy to Web3 is a strategic important. Forget blockchain as an “alternative” to the dollar; it is a powerful tool for extending Americas economic reach. Republicans should lead the charge.

The Houses latest draft stablecoin costs is a great start and highlights McHenrys policy chops in Web3, but legislators can do more. That consists of supporting Circle Internet Financial, the issuer of USDC. In the Senate, Republicans must imitate Roger Marshall by working with crypto-savvy Democrats, consisting of Warren, to draft industry-friendly KYC and AML rules..

Elizabeth Warren is a builder, not a hodler. (Twitter).

Alex ODonnell is the founder and CEO of Umami Labs and worked as an early contributor to Umami Protocol. Prior to Umami Labs, he worked for seven years as a monetary reporter at Reuters, where he covered M&An ipos and s.

During his governmental project statement in May, Florida Governor Ron DeSantis firmly insisted that “the current regime, clearly, has it out for Bitcoin.” The prospects populist red meat has actually been the Republican “party line” on crypto in this election cycle. So far, it has actually been challenging to separate the rhetoric of GOP presidential hopefuls from that of “freedom-maximalist” influencers on Crypto Twitter.

This post is for basic details functions and is not intended to be and ought to not be taken as legal or investment recommendations. The ideas, viewpoints and views revealed here are the authors alone and do not necessarily show or represent the views and opinions of either Umami Labs or Cointelegraph.

Misguided policymaking.

The proposed bill does more to control Web3 as crypto locals envision it to be than as the market runs today. In keeping with Republicans enduring choice, DAMS conceives of crypto assets mostly as “digital commodities” to be supervised by the Commodities Futures Trading Commission. Undoubtedly, the expense paves a clear course for CFTC compliance.

Amongst the uncommon exceptions are crypto-savvy GOP legislators such as Financial Services Committee Chair McHenry, who led the House Subcommittee on Digital Assets earlier this year. However, the impact of the crypto industrys memeified rhetoric is obvious even in the partys inner policy-making circles..

From uncritical crypto “maximalism” to Orwellian monitoring fear, Web3s industry bromides have actually sneaked into the celebrations campaign rhetoric and, even worse, its policy propositions. In influential upcoming legal chances, such as the Houses draft crypto regulative bill, Republican policymakers must focus on putting “America initially.”.

At the other extreme, progressive Senator Elizabeth Warren and her “anti-crypto army” portray crypto as an omnipresent risk, simultaneously eroding investor defenses, abetting cash launderers and aggravating Americas “tax space.” What is doing not have in this partisan hothouse is any educated gratitude of blockchains possible or its significance to Americas long-term financial interests.

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@GOPMajorityWhip Tom Emmer joined me in this important battle to protect our markets: “American financiers and market are worthy of constant and clear oversight, not political gamesmanship. The SEC Stabilization Act will make sensible modifications to guarantee that the SECs top priorities …
— Warren Davidson (@WarrenDavidson) June 12, 2023.

The GOP may quickly have a shot at defining Americas crypto policy. Now is not the time to catch partisan talking points or industry bromides. Legislators need to clearly evaluate Web3 as it exists today so that the U.S. can unlock its benefits for decades to come.

After almost a decade of gridlock, the United States might finally be on the cusp of crafting a cohesive policy structure for digital possessions. In Congress, lawmakers are mulling a variety of proposed expenses governing everything from securities and stablecoins guidelines to sanctions. The 2024 governmental race, meanwhile, might be the first to see crypto as a centerpiece..

The proposed bill does more to regulate Web3 as crypto natives envision it to be than as the industry operates today. In keeping with Republicans enduring choice, DAMS conceives of crypto assets mostly as “digital commodities” to be managed by the Commodities Futures Trading Commission. The GOP might soon have a shot at defining Americas crypto policy.

From uncritical crypto “maximalism” to Orwellian security fear, Web3s market bromides have sneaked into the partys project rhetoric and, worse, its policy propositions. In seminal upcoming legal opportunities, such as the Houses draft crypto regulatory costs, Republican policymakers should focus on putting “America initially.”.

Memeified campaign rhetoric.

As a very first action, Republicans must bury the half-baked idea that crypto is antagonistic to the standard monetary system. In the near term, policymakers must create clear SEC exemptions for digital assets so nascent U.S. protocols can get off the ground.

Take, for instance, the Digital Assets Market Structure (DAMS) bill. The watershed draft legislation, penned in part by McHenrys committee, marks Congresss many trustworthy proposed regulatory framework for crypto to date. While, as Messari CEO Ryan Selkis said, DAMS is “a 10x enhancement” over previous bills, it still disappoints bringing regulatory clearness to the market.

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For prospects like DeSantis, protecting Americans from “a federally controlled reserve bank digital currency monitoring state” ranks high amongst blockchains prospective usage cases. Even GOP longshot Vivek Ramaswamy, a biotech business owner who declares to “understand this things in a far more abundant and deep method” than DeSantis, says he sees Bitcoin as a “decentralized option” to the U.S. dollar and wishes to “make the 2024 election a referendum on fiat currency.”.

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In other words, much of the more than 160-page draft expense just applies, with any certainty, to two digital assets: Bitcoin and Ether. On the other hand, protocols with any level of central operations (read: most) remain under the jurisdiction of the Securities and Exchange Commission. An enhancement on the status quo, the path to SEC compliance under DAMS is relatively convoluted.

America-first crypto laws.

Other Questions People Ask

What are the implications of GOP crypto maxis being compared to Dems’ ‘anti-crypto army’?

The comparison highlights a troubling trend where both sides of the political spectrum fail to recognize the potential of crypto as a strategic asset for the U.S. Instead of fostering innovation, GOP crypto maxis may inadvertently align with the restrictive policies of their Democratic counterparts. This could stifle the growth of the crypto industry and limit America's economic reach in the evolving Web3 landscape.

How can Republicans improve their stance on crypto in light of the ‘anti-crypto army’?

Republicans can enhance their approach by collaborating with crypto-savvy Democrats to draft more industry-friendly regulations, particularly in areas like KYC and AML. By moving beyond partisan rhetoric and focusing on practical solutions, they can create a more favorable environment for crypto innovation. Supporting initiatives like the House's draft stablecoin bill is a step in the right direction, but more comprehensive policies are needed to truly put America first in the crypto space.

What role does the proposed DAMS bill play in shaping GOP crypto policy?

The Digital Assets Market Structure (DAMS) bill represents a significant attempt by Republicans to establish a coherent regulatory framework for crypto. While it marks an improvement over previous proposals, it still falls short of providing the clarity needed for the industry to thrive. By viewing crypto assets primarily as "digital commodities," GOP lawmakers risk limiting the potential benefits that blockchain technology can offer to America's economy.

Why is bipartisan support crucial for effective crypto legislation?

Bipartisan support is essential for crafting effective crypto legislation that balances innovation with necessary regulation. When both parties work together, they can create a framework that acknowledges the potential of blockchain while addressing concerns about security and compliance. This collaboration can lead to more robust policies that benefit the entire industry and position the U.S. as a leader in the global crypto market.

What should be the GOP's priority regarding crypto policy moving forward?

The GOP's priority should be to move past outdated notions that view crypto as a threat to traditional finance. Instead, they should focus on creating clear regulatory exemptions for digital assets to foster innovation and growth. By prioritizing America’s leadership in Web3 and recognizing crypto's potential as a strategic asset, Republicans can help shape a positive future for the industry.