On Tuesday, May 3rd, Axios fintech reporters Ryan Lawler and Lucinda Shen unpacked the future of crypto adoption – from how the crypto industry plans to improve its legitimacy as a viable form of currency to what’s next for its regulatory framework, featuring Sen. Cynthia Lummis (R-Wyo.) and Haun Ventures chief policy officer Tomicah Tillemann.
Sen. Cynthia Lummis discussed key components of legislation in the works to create a digital assets regulatory framework, thoughts on agency action on the crypto market while awaiting regulatory direction and the value of potential cryptocurrencies beyond commonly known ones such as Bitcoin.
- On the importance of a regulatory framework for the crypto industry: “We’re dealing with a $1.8 trillion industry and growing rapidly. It’s important that they have a regulatory framework where they understand the rules of the road but can still innovate, because the innovation in this space is absolutely astounding.”
- On how government agencies would benefit from regulatory guidelines: “We hope this bill is something that can move more quickly through the legislative process than you might normally see with a brand new topic that is this complex, because the agencies so desperately need the additional guidance that will come through this piece of legislation.”
Tomicah Tillemann illustrated the reasoning behind the crypto economy’s calls for regulatory clarity, the areas of the industry where more regulatory oversight is needed and why existing systems need to be updated to reflect the use of new financial tools.
- On the difficulties of operating under an outdated regulatory system: “It makes it extremely challenging, even for those that are trying to keep the rules to do things the right way. What we’ve seen with March’s executive order…is that there’s now a whole of government effort on the part of the administration to step in and rethink how we are going to regulate these tools going forward. So some simplification there…is going to be very critical.”
- On the path forward for crypto regulation: “What I think we need to be mindful of going forward is the fact that a lot of regulation right now, specifically from certain agencies, is occurring in the context of litigation and specifically taking enforcement actions…without providing clear guidance on the right way to keep the rules and the right way to develop these solutions. That’s something that really needs to change.”
In the View from the Top segment, Circle chief strategy officer & head of global policy Dante Disparte highlighted how blockchain payments have provided new opportunities for participation in the financial system.
- “The advent of cryptocurrencies, the advent of internet native finance, what is known as decentralized finance or DeFi, are creating a safe series of alternatives for people to be banked, for people to execute payments and ultimately for people to participate in a revolutionary new asset class.”
Thank you Circle for sponsoring this event.