Democratic congresswoman Maxine Waters has long been against blockchain technology, crypto, and its currencies. As the current Chairwoman of the House Committee on Financial Services, she has been publicly against any form of digital currencies and generally believes they are used for only illegal transactions.
Maxine Waters recently announced that she is calling six CEOs of major cryptocurrency companies to testify in front of the Federal Trade Committee (FTC) on 8 December 2021.
According to the press release, the witnesses who will attend include Jeremy Allaire, CEO of Circle, Sam Bankman-Fried, CEO of FTX, Brian Brooks, CEO of Bitfury, Chad Cascarilla, CEO of Paxos, Denelle Dixon, CEO of Stellar and Alesia Haas, CEO of Coinbase.
Waters has most likely called this testimony to berate the executives and cast a negative shadow on the cryptocurrency industry. The long-time protagonist in the crypto industry has always had harsh words towards anything related to blockchain and accuses all cryptocurrency companies of endangering consumers. she has deemed the crypto industry as a poorly understood and minimally regulated industry.
One year ago the Office of the Comptroller of the Currency (OCC) passed favorable crypto-guidelines which included a provision that allowed banks to store stablecoins for their clients. Maxine Waters begged President Biden to reverse the guidelines claiming it would be poor for consumers. This argument is one Waters likes to use when she cracks down on financial institutions she does not favor.
This testimony titled “Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States”, will likely fall on deaf ears as many people are beginning to see what cryptocurrencies are capable of. This accountability committee will also see the likes of Mark Zuckerberg as well as other CEOs.
Crypto enthusiasts can only hope that this committee allows CEOs to speak highly of digital assets. If this committee is successful in putting the shade on the crypto industry, it could lead to negative regulations put in place against cryptocurrencies.
The US has already passed into law a provision in the latest Infrastructure Bill that could be worrisome to those who trade NFTs or use decentralized finance products. While there are a few proponents of Bitcoin and other digital currencies, there are still many in congress who do not fully understand the technology.