In a new memo delivered to the House Committee about Financial Services, the Republicans admit that the digital asset market is a flourishing trillion-dollar domain. Part of the memo reads,
“The current market value of digital assets is estimated to be over $1.05 trillion, out of which Ether and Bitcoin contribute to roughly 60% of the market share. The digital asset industry is still in its early stages, but it comprises a wide range of enterprises and activities that share a common reliance on blockchain technology.”
According to the lawmakers, the Biden administration’s proposed rules have endangered the United States cryptocurrency industry from being displaced to other countries in the past two years. Hence, the Republicans are calling for collaboration among law enforcement agencies and legislators to develop unambiguous regulatory frameworks for the cryptocurrency sector to prevent this from happening.
“The Biden Administration has taken several actions that exceed their jurisdictional authority, and the consequences should not be underestimated. As a result of these policies, the digital asset ecosystem can move overseas.
A Call For Better Cooperation
Republican Committee members have consistently called for better cooperation among agencies to establish regulatory assurance in the digital asset sector. Recent developments have emphasized the need for Congress to pass legislation to bring transparency to the cryptocurrency ecosystem.
The memorandum was announced before the House Subcommittee concerning Digital Assets, Financial Technology, and Inclusion’s inaugural hearing. The memo stated that the discussion would focus on the administration’s “assault on the digital asset industry.”
Meanwhile, the United States president commented on the recent collapse of two crypto-friendly banks last week. In his comments, President Biden stated that he would re-inaugurate the 2010 Dodd-Frank Act.
He said the act, which became law under President Obama, strengthened financial institutions. However, the law was weakened by the previous administration. President Biden added that there would be a thorough investigation into the cause of the collapse of Silvergate and Silicon Valley banks, and those found guilty would face the law.