News
Adopting Blockchain Industries Can Be Fruitful
Alexander Cutchey, Marathon Digital Holdings | Special to the St. Cloud Times
Dear Editor,
The cryptocurrency and blockchain industries have immense potential for economic growth and technological advancement. To realize the industry’s full potential, we need to establish regulatory clarity to ensure consumer protection and that the industry operates within ethical and legal boundaries.
While the United States has been slow to adopt meaningful regulation in this area, we are seeing growing bipartisan recognition of the need for regulatory clarity regarding digital assets. The House of Representatives, with bipartisan support, passed the Financial Innovation and Technology for the 21st Century Act (FIT21), a bill that will establish a market framework for regulating digital assets. Additionally, a bipartisan House and Senate passed H.J.Res. 109, a resolution to overturn the regulatory overreach of the SEC’s Accounting SAB 121, over concerns about its harmful impact on consumers and financial institutions. This bipartisan support underscores the importance and need for FIT21 to provide clear rules and standards for this growing industry.
There are some key areas where legislation is crucial for the cryptocurrency and blockchain industry.
First, consumers need to be protected. Cryptocurrencies and transactions can be complex, making them vulnerable to fraud. Regulations that protect consumers from scams will ensure that this new industry can be safely used for legitimate purposes. Second, clear delineation between the SEC and CFTC’s regulatory authority is needed to create a streamlined and effective regulatory environment to foster innovation and regulatory certainty in the digital asset space. The act’s provisions for registration, compliance, and oversight help improve market integrity by ensuring that digital asset exchanges and custodians operate under strong and clear standards. In addition to protecting individual consumers, regulation that supports cybersecurity more broadly will ensure that users and institutions are protected from cyberattacks when using this new technology.
FIT21 and the regulations it outlines are not just about regulation, they are a critical part of maintaining America’s global competitiveness in this new industry. A strong framework of clear and consolidated regulations will not only protect consumers and institutions, but will also attract talent and investment to our country. This, in turn, will support continued innovation and entrepreneurship, promoting jobs and economic growth in America.
To realize these benefits, FIT21 must reach the finish line, and the next step is Senate approval. I hope Minnesota Senators Smith and Klobuchar see the benefits of cryptocurrency and blockchain technology and lend their support to FIT21. This legislation will ensure America remains a leader in technological innovation.
Alexander Cutchey, Chief Executive Officer of Marathon Digital Holdings
Government Affairs Officer, St. Cloud