Much ado about nothing: ICOs and cryptocurrencies once again ignite U.S. hearings

Congressman Bill Huizenga made the remarks during a recess of a U.S. Congressional Capital Markets, Securities, and Investment Subcommittee hearing on cryptocurrencies, ICOs, and whether the existing regulatory framework is adequate to protect investors.

The hearing was attended by academic experts and cryptocurrency industry representatives, with Huizenga's main point being that regulators must clarify the legal status of crypto assets and ensure that relevant processes comply with federal law while helping entrepreneurs innovate.

Similar to the recent U.S. Congressional hearing on cryptocurrency regulation, lawmakers at this meeting also expressed different opinions on the value of cryptocurrencies and blockchain technology.

Some members of the committee have struggled with the alleged link between cryptocurrencies and terrorism. For example, Brad Sherman said that cryptocurrencies are hypocritical and questioned whether they can really play a positive role in society.

Perhaps we’ll have another hearing when it’s revealed that cryptocurrencies have funded a large-scale terrorist act.

He added that cryptocurrencies are only for people who want to tell their wives in their pajamas that they are going to be a millionaire.

However, others praised ICOs and other blockchain-related fintech developments, and argued that rash or excessive regulation could threaten the United States’ position as a fintech leader.

Councillor Ted Budd said:

The United States must make the right decisions about regulation in this area, as hasty or ill-conceived cryptocurrency policy threatens our reputation in the financial and technology industries.

Likewise, Representative Tom Emmer, a member of the Congressional Blockchain Coalition, criticized politicians for calling for new regulations without conducting a thorough study and understanding of the technology.

I've heard from officials in office who don't understand the concept of cryptocurrency and related technologies, and don't understand how exciting it is to talk about this topic. They just think 'Oh my God, we need to hurry up and create more regulation and government infrastructure.'

Emmer said that while some cryptocurrency regulation is needed, the ICO fundraising model should be celebrated by both Democrats and Republicans.

Huizenga mentioned during the recess that this hearing will help legislators create a regulatory and operational environment in the emerging crypto asset space, especially ICOs. It is certain that this will not be the last time Congress discusses cryptocurrency regulation.