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At the Permissionless III conference, Utah Congressman John Curtis and Senator Mike Lee talked about where crypto regulations are headed in the U.S. Curtis said bipartisan support is there, but it’s very “fragile.” If crypto becomes a divisive political issue, getting any meaningful regulations passed will be an uphill battle.
Why Bipartisanship Is Tough
Curtis pointed out how important it is for Republicans and Democrats to work together on crypto policy. He also stressed that people in the industry need to help lawmakers understand the complicated world of cryptocurrency, as many still don’t fully get it.
Mike Lee’s Thoughts on Regulating Crypto
Senator Mike Lee shared his concerns about three main threats to crypto: the creation of a Central Bank Digital Currency (CBDC) by the Federal Reserve, too much federal regulation, and different states making their own conflicting rules. He called having different state laws “death by 50 cuts” for crypto.
Lee also said that cryptocurrency shouldn’t be regulated like traditional assets, such as stocks or commodities. He even suggested that capital gains taxes shouldn’t apply to crypto transactions. He ended by saying that if the government overregulates the crypto industry, it could kill innovation before it really gets a chance to grow.
