Circle CEO, Jeremy Allaire was the only crypto industry representative at Tuesday’s U.S Senate Committee on Banking, Housing, and Urban Affairs hearing on the growing need for regulations to guide the emerging space.
Interestingly, Allaire did not fail to speak in the best interest of the community asserting in his opening sentences that lawmakers must "allow crypto innovators room to grow" in the United States.
Going in full detail on how such a goal could be met, Allaire suggested that the Congress adopts “national policies that define and establish digital assets as a new asset class including appropriate rules and exemptions.”
He argued that if the U.S fails to make the necessary adjustments to accommodate the emerging industry, then the country would fall behind their counterparts who do so.
Such a situation, according to him, will also make the U.S “miss out on the benefits of the economic transformation that digital assets will bring.”
“These types of assets have the broadest applicability and should be encouraged in their development in the same way we encouraged the rapid development of technical standards that made the internet flourish,” the Circle CEO said.
He also criticized the supposed guideline released by the United States Securities and Exchanges Commission (SEC) regarding when a cryptocurrency should be considered ‘security.’ This guideline, according to Allaire, is extremely narrow since “the utility value of the asset would not be possible to function if it were treated as a security.”
Meanwhile, Jeremy Allaire’s call for a new national regulatory framework for crypto assets in the U.S is the second of such an appeal made this week by a top executive at a crypto company.
On Monday, Stmarket.co reported that Ripple CEO Brad Garlinghouse and co-founder Chris Larsen wrote an open letter to the U.S Congress asking lawmakers to resolve the regulatory uncertainty facing crypto projects.