SwanBitcoin445X250

Yesterday, Congress addressed in two full hearings why it’s time to start taking a closer look at why and how digital assets, including cryptocurrencies, are impacting U.S. marketplaces.

The following condensed information is a run-down of what the House Committee on Agriculture and the U.S. Commodity Futures Trading Commission (CFTC) discussed during the hearings regarding cryptocurrency and distributed ledger technology (DLT).

Congress Has a Vested Interest in Securities and Economic Growth

Some might find it odd to see the House Committee on Agriculture represented at a hearing on digital assets and their related technologies. But Chairman Michael Conaway made it very clear why the House Agriculture Committee was there, explaining that they have a vested interest in shaping and constructing the definition of a security because it directly impacts the definition of a commodity.

Working in tandem, both Chairman Conaway and Ranking Member Collin Peterson identified five main goals for clarifying blockchain industry regulation:

  • Promoting a safe, efficient and transparent tokens market
  • Proper regulation doesn’t always mean intrusive regulation
  • Identifying whether tokens are securities
  • Parsing through whether our current laws are appropriate to apply
  • Ensuring enough oversight to help the space grow responsibly

Understanding Why Blockchain Technology Is Valuable

The panel of witnesses sitting on Capitol Hill presented in-depth yet simplistic explanations for what needs to be done. Applying those proposals, however, is an entirely different conversation.

Observing the Communities Using the Technology

hearing2

Joshua Fairfield addresses Congress about the value cryptocurrency potentially brings consumers. (Photo credit: HOUSE AGRICULTURE COMMITTEE)

According to Joshua Fairfield — William Donald Bain Family Professor of Law at Washington and Lee University School of Law in Staunton, VA — the potential value of blockchain technology is considerable.

First, the technology has allowed for collaboration among communities of artists.

Second, new

Read more from our friends at Bitcoin Magazine: