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December 10, 2021
2021-2228

House Financial Services Committee questions CEOs on cryptocurrency risks and benefits

Democrats express concern about digital assets' volatility, use by criminal actors; crypto CEOs say their products empower consumers but disagree on regulatory approach

The House Financial Services Committee held a hearing December 8 on "Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States." Materials from the hearing are available here. The witnesses were the CEOs of several cryptocurrency companies:

  • Jeremy Allaire, co-founder, chairman and CEO, Circle
  • Samuel Bankman-Fried, founder and CEO, FTX
  • Brian P. Brooks, CEO, Bitfury Group
  • Charles Cascarilla, CEO and co-founder, Paxos Trust Company
  • Denelle Dixon, CEO and executive director, Stellar Development Foundation
  • Alesia Jeanne Haas, CEO, Coinbase Inc. and CFO, Coinbase Global Inc.

At the hearing, Democratic members often expressed concern about digital assets' volatility, whether consumers are adequately protected from their risks, and the use of cryptocurrency by terrorists and other criminals, while Republicans focused on the prospect that overregulation of the nascent industry would kill innovation or cause crypto companies to move overseas. The Senate Banking Committee is holding a hearing on stablecoins next Tuesday, December 14.

Additional information is available in the attached memorandum and Tax Alert.

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Contact Information
For additional information concerning this Alert, please contact:
 
Washington Council Ernst & Young
   • Will Heyniger (will.heyniger@ey.com)
   • Bob Schellhas (bob.schellhas@ey.com)

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ATTACHMENTS

Digital Assets and the Future of Finance

Cryptocurrency Risks and Benefits

 

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