What Last Week’s Hearing Means for U.S. Competitiveness and the Future of the U.S. Dollar as the World’s Reserve Currency

Last Wednesday’s historic hearing in the House Financial Services Committee was in many ways reflective of the many years of work and development by the U.S. blockchain and cryptocurrency industry both in terms of combatting risks and bad-actors but also educating policymakers on these technologies which will be the bedrock of the world’s financial system and the infrastructure for Web3 (which seeks to solve many of the issues presented by the over-centralization of the internet and the issues caused by central points of failure). The hearing was organized in a bipartisan manner by both Chairwoman Maxine Waters (D-CA) and Ranking Member Patrick McHenry (R-NC) with witnesses receiving many thoughtful questions from House members on both sides of the aisle (in addition to negative lines of questioning from cryptos biggest critic, ABA backed Congressman, Brad Sherman (D-CA). Despite some media coverage portraying this hearing as overly partisan, this hearing was actually the most bipartisan hearings ever conducted in the U.S. Congress to date.

One of the most important developments shown throughout the hearing was the importance of the U.S. utilizing blockchain innovation for a future digital dollar or CBDC. Combined with our military, the United State’s role in the global financial system are the core of our nation’s leadership as a superpower on the world stage. Our ability to hold rogue regimes and human rights abusers accountable through sanctions has been an important part of our ability to be a force for freedom and democracy across the world. The question of how our nation seeks to combat attempts by the CCP and Russian government to create an alternative financial system free from the control of international standards and multilateral institutions dedicated to preserving world peace and prosperity through the ability to hold those who commit crimes against humanity or facilitate terrorism and international criminal activities. 

The importance of the dollar remaining a preferred currency has recently been brought front and center due to the recent increase in rapid inflation due to a myriad of effects caused by the COVID-19 pandemic and the government’s response. Former Acting Comptroller of the Currency under President Trump, Brian Brooks, who is now CEO of BitFury shared his perspective on how regulated stablecoins in the U.S. are already winning the digital currency race with the CCP, despite any meaningful support from Congress and the current administration. With some vocal members of the crypto industry still embracing anarchist doctrines routing for the fall of nation-states and the demise of the U.S. dollar, last weeks hearing presented an alternative way to view blockchain innovation in the United States. 

The myth that the cryptocurrency industry remains unregulated in the U.S. is still a common theme among cable news anchors and industry opponents in traditional finance and big tech. This hearing helped to clear up this blatant myth for many members of the committee still unaware of the current regulatory regimes followed by the wide majority of the industry in the U.S., with each CEO breaking down the myriad of state, federal, and multi-jurisdictional regulators currently overseeing their activities.

This Tuesday, another hearing is taking place in the Senate Banking Committee featuring both crypto industry innovators as well as some of the industry’s biggest critics who are currently leading the effort to discredit both cryptocurrency and innovation in public-blockchain networks at some of the nations most respected institutions of higher education. The slew of misinformation being spread by both private interests threatened by blockchain innovation, in addition to foreign powers (Russia, China, North Korea, Iran, Venezuela) seeking to surpass us in the development of and implementation of these technologies is extremely concerning. Therefore, it is critical that instead of engaging in rhetoric anticipating the United States, industry leaders and advocates must continue to better educate policymakers on these crucial innovations, as well as properly explain the benefits blockchain technology can provide for the United States, both domestically and internationally.