Cryptos came to Capitol Hill on Wednesday this week, with a subcommittee of the U.S. House of Representatives Financial Services Committee holding a hearing entitled “Examining Cryptocurrencies and ICO Markets.” The hearing, which marked the first time Congress tackled the regulatory issues surrounding initial coin offerings, highlighted an apparent schism between US lawmakers regarding blockchain technology and digital currencies.<\/p>\n
The Wednesday morning hearing presented was largely educational in tone, drawing a range of industry, legal, and academic witnesses, and focused on questions regarding the regulatory parameters governing both cryptocurrencies and initial coin offerings present in the US today.<\/p>\n
Featured at the hearing were witnesses such as Georgetown University law professor Dr. Chris Brummer, Wilson Sonsini Goodrich and Rosati partner Robert Rosenblum, and Coinbase's chief legal and risk officer Mike Lempres.<\/p>\n
The strong lineup of advisors, however, appeared to provide little context to some of Congress\u2019s less technically-apt members, with Rep. Brad Sherman demonstrating a lack of context regarding the purpose and function of cryptocurrencies:<\/p>\n
“A currency is both a store of value… and a medium of exchange … is there any reason why I would need a cryptocurrency to pay for my groceries or anything else that wouldn\u2019t be adequately served by using dollars?\u201d<\/p><\/blockquote>\n
Democratic Party member Carolyn Maloney presented a critical perspective of digital currencies as a whole, making references to the \u201cinevitable burst\u201d of the cryptocurrency \u201cbubble.\u201d Less-informed positions on the nature of cryptocurrencies and blockchain technology, however, were balanced by more nuanced perspectives from Representatives such as Tom Emmer, who highlighted the lack of clarity present within the hearing:<\/p>\n
“I hear elected officials who don't have any concept of what we're dealing with here … talking about ‘we have to go in and regulate.”<\/p><\/blockquote>\n
Emmer was supported by Rep. Ted Budd, who called attention to the need for a forward-leaning US position on cryptocurrency regulation:<\/p>\n
“Regulation in this space is something that the U.S. has to get right, because poor or rushed policy in cryptocurrencies really threatens our reputation in finance and technology.”<\/p><\/blockquote>\n
Some of the more inflammatory remarks made during the hearing, however, drew ire from the crypto community \u2014 specifically, California Rep. Brad Sherman\u2019s statements referring to cryptocurrencies as a \u201ccrock\u201d:<\/p>\n
\u201cCryptocurrencies are a crock. They are popular with guys who sit around in their pajamas and tell their wives they're going to be millionaires.”<\/p><\/blockquote>\n
The response from the crypto Twittersphere was unsurprising, with many community members taking to the social media platform to vent their frustration with Rep. Sherman\u2019s position.<\/p>\n
\nTagging @BradSherman<\/a> because I'd rather talk to him than about him. Congressman, your views on cryptocurrencies are outdated & poorly researched. You showed extreme ignorance of both the world economy and the technology behind crypto. You left mid-hearing, why? #ICOsInTheHouse<\/a><\/p>\n
— Michelle L. Staton (@MichelleLStaton) March 14, 2018<\/a><\/p><\/blockquote>\n