More than two dozen top tech experts have signed a letter asking congressional leaders to take a skeptical look at the booming crypto industry.
The letter, released Wednesday and addressed to Senate Majority Leader Chuck Schumer, Senate Minority Leader Mitch McConnell, House Speaker Nancy Pelosi and House Minority Leader Kevin McCarthy, among others, comes from 26 industry experts, including Harvard’s Bruce Schneier and Google Cloud’s lead engineer. Kelsey High Tower.
Tech leaders question claims by crypto evangelists that “crypto-assets are innovative technology that is unqualifiedly good” and instead urge lawmakers to “take a critical and skeptical approach” to of cryptography.
“We urge you to resist pressure from financiers, lobbyists and digital asset industry boosters to create a regulatory haven for these risky, flawed and unproven digital financial instruments and instead adopt an approach that protects the public interest and ensures the deployment of technology in genuine service of the needs of ordinary citizens,” the letter read.
He argues that claims that the crypto-asset industry is “in any way suited to solving the financial problems facing ordinary Americans” are simply “peddled by those with a financial stake” in its hit.
Despite its prolonged fall, the cryptocurrency sector still has a market capitalization of $1.27 trillion, according to CoinGecko, with the leading digital token bitcoin alone occupying $562 billion.
The signatories write that “not all innovation is necessarily good” and say that “the history of technology is full of dead ends, false starts and false turns”.
He goes on to assert that blockchain technology is “ill-suited for almost any purpose currently presented as an actual or potential source of public benefit” and calls it “a solution in search of a problem.”
They urge lawmakers to ensure that people “are not left vulnerable to predatory finance, fraud and systemic economic risk in the name of technological potential that does not exist,” saying crypto assets are often used in “unhealthy and highly volatile speculative investments”. schemes” that mislead retail investors “who may be unable to understand their nature and risk”.
The letter comes as Senators Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-NY) are set to introduce their crypto oversight bill, which Lummis told CNBC last week “ creates regulation for digital assets that … hits the sweet spot between clear and understood regulation and that doesn’t stifle innovation.”
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