Crypto News: What Tech Experts Are Saying to Lawmakers About Digital Currency

  • A group of tech experts are reaching out to U.S. lawmakers about the dangers of cryptocurrency.
  • 26 industry leaders wrote a letter to Congressional financial committee members and vocal crypto advocates.
  • The letter comes as Congress starts to entrench itself in the debate over crypto legislation.
Crypto coins on a phone screen showing stats for various cryptocurrencies. Cryptos. Cryptocurrencies.

Source: Chinnapong / Shutterstock

Today’s crypto news sees tech experts reaching out to lawmakers on behalf of the industry. But while this type of interaction historically favored digital money, today this group of industry bigwigs is warning against blockchain tech and crypto-friendly policies. But who are these experts, and why are they so opposed to digital assets?

Throughout this year, the conversation about crypto has picked up significantly at the legislative level. Lawmakers have held several meetings on different facets of the industry, ranging from its environmental impact to security and on-chain criminal activity. These meetings are setting the tone for the broad infrastructure plan legislators are meant to set at some point this year.

In that time, investors have seen several standout members of Congress who feel strongly about crypto. Plenty of legislators have shown their distaste for the assets, like Senator Elizabeth Warren. But with near-equal frequency, they see bulls cropping up in Senators Pat Toomey and Ron Wyden. Interestingly enough, the issue has not yet become wholly partisan; members on both sides of the aisle are speaking on behalf of and against the industry.

Crypto lobbyists have also become a force in the political landscape as a result of the building hype. The Blockchain Association, for one, is growing into one of the largest crypto-centric lobbyists, booming after Congress passed its tax reporting provisions last year. Additionally, FTX CEO Sam Bankman-Fried has personally contributed to pro-crypto candidates’ campaigns. He is projected to spend upwards of $1 billion on campaign funding during the 2024 election cycle.

Crypto News: Tech Experts Try to Talk Down Crypto Bulls in Congress

Quite obviously, the industry is earning some sway among the country’s most powerful individuals. But in today’s big crypto news, tech experts on the other side of the debate are taking the industry to task. They’re warning lawmakers against falling under the influence of this increasingly lucrative industry and encouraging them to create sensible regulations.

A letter urging Congress to implement responsible fintech policies was signed by 26 tech experts from some of the most esteemed institutions and tech companies in the world. Most notably, the letter includes support from Harvard University’s Bruce Schneier, Microsoft (NASDAQ:MSFT) expat Miguel de Icaza and famed crypto skeptic Molly White.

The contents of the letter are short yet profound. The experts simply warn members of Congress to be skeptical when debating crypto regulations. They argue lobbyists and others with financial interests in digital money overstate the safety of crypto assets. They also believe broad implementation of blockchain technologies in the finance industry will deal a major blow to citizens’ privacy.

The letter addresses 12 legislators by name, and most of them are on Congressional committees focused on finance and banking. Also included are House Speaker Nancy Pelosi as well as the House and Senate minority and majority leaders.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Brenden Rearick is a Financial News Writer for InvestorPlace’s Today’s Market team. He mainly covers digital assets and tech stocks, with a focus on crypto regulation and DeFi.

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