US Senate Crypto Hearing Key Takeaways: Blockchain Is 'Inevitable'

The main consensus was that the influx of cryptocurrencies and blockchain is inevitable and that the U.S. would prefer to be a leader in this sector.

Positive start: Crypto is "Inevitable," can't be bannedIn his opening statement, Sen. Mike Crapo from Idaho admitted that the crypto space is emerging, and it is important for the U.S. to be at the forefront of that innovation.

Allaire asked for a regulatory frameworkThe Circle CEO's testimony stressed the necessity for the U.S. to adopt clear regulations for cryptocurrencies and around the custody of assets in particular.

Many new services, like advanced trading products and new crypto asset listings, won't be available to U.S. consumers.

"There is a fundamental mismatch between the regulatory structure and guidance that we have here in the U.S. and the nature of these digital assets. Markets around the world are adopting these, not just Bermuda but Singapore, Switzerland, even jurisdictions like France introducing tailor proposed definition of digital assets so that issuers can feel comfortable."

Baradaran and senators argued over financial inclusivity in cryptoFollowing on from the ideas in her prepublished testimony, Baradaran, who specializes in financial inclusivity, argued that the current problems in the U.S. economy are issues of policy, not of technology - so blockchain is not necessarily the answer.

Do congressional hearings matter?Despite the increase in the number of Senate hearings on cryptocurrencies, the U.S. authorities still seem overall hesitant about cryptocurrencies.

It is not so much restrictive laws or rules which hinder Crypto adoption in the U.S. it is more the total lack of any clarity which leaves people confused as to their legality and status.

The U.S. would not want to forfeit the crypto space to other jurisdictions, according to McCormick.

"The US is falling behind the rest of the world in terms of regulatory clarity and this led to blockchain startups moving out of the US, evident by Circle moving to Bermuda recently to set up their exchange HQ.".