Alexander Katchei, Marathon Digital Holdings | Special to the St. Cloud Times
Dear Editor,
The cryptocurrency and blockchain sector holds great potential for economic growth and technological advancement. To realize this sector’s full potential, regulatory clarity must be established to ensure consumer protection and the industry operates ethically and within legal bounds.
Although the United States has been slow to adopt meaningful regulation in this space, there is growing bipartisan recognition of the need for regulatory clarity regarding digital assets. The House of Representatives passed, with bipartisan support, the Financial Innovation and Technology for the 21st Century Act (FIT21), a bill that would establish a market structure for the regulation of digital assets. Additionally, a bipartisan House and Senate passed HJRes. 109, a resolution to repeal the regulatory overreach of SEC Accounting SAB 121 due to concerns that it would negatively impact consumers and financial institutions. This bipartisan support underscores the importance and need for FIT21 to provide clear rules and standards for this burgeoning industry.
There are several areas where regulation is crucial for the cryptocurrency and blockchain industry.
First, consumers must be protected. Cryptocurrencies and transactions can be complex and prone to fraud. Rules that protect consumers from fraud will ensure they feel confident using this new sector for legitimate purposes. Second, clear distinctions between SEC and CFTC regulators are necessary to create a streamlined and effective regulatory environment to foster innovation and regulatory certainty in the digital asset space. The act’s registration, compliance, and oversight provisions will help promote market integrity by ensuring that digital asset exchanges and custodians operate to robust and clear standards. In addition to protecting individual consumers, regulations that support cybersecurity more broadly will protect users and institutions from cyberattacks as they utilize this new technology.
FIT21 and the regulations it prescribes are more than just regulations; they are a critical part of maintaining America’s global competitiveness in this new sector. A strong framework of clear and established regulations not only protects consumers and institutions, but also attracts talent and investment to our country. This, in turn, supports continued innovation and entrepreneurship, and drives American jobs and economic growth.
For these benefits to be realized, FIT21 needs to cross the finish line and the next step is passage in the Senate. We hope that Minnesota Senators Smith and Klobuchar understand the benefits of cryptocurrency and blockchain technology and will support FIT21. This bill will ensure that America remains a leader in technological innovation.
Alexander Katchey, Marathon Digital Holdings
St. Cloud Government Relations Manager
