US Faces Pressure From China As Digital Currency Adoption Debate Continues: Broadband Breakfast

WASHINGTON, Feb. 16, 2022 — Despite the unknowns in cryptocurrency, experts warned last week against overregulation lest it stifle innovation in the burgeoning sector.

At the Broadband Breakfast event on February 9, the University of Arkansas law professor Carole Goforth argued that one of the biggest issues facing cryptocurrencies is balancing regulation and consumer safety.

“The growing challenge is to balance the legitimate need to protect the public, investors and our financial structures and systems from abuse, [with] the desire to protect and encourage legitimate entrepreneurs,” Goforth said.

One benefit that often piques consumer interest while worrying regulators is the decentralized nature of cryptocurrency. Cryptocurrency advocates often tout the lack of a single regulator with a domain on blockchain and cryptocurrency as an appealing feature, while governments often scramble to find ways to protect consumers. in the often anonymous and deregulated sector.

Matthew Snider is the senior vice president of Centri Tech – an organization dedicated to improving broadband connections and using those connections to improve users’ quality of life. “Decentralization is a spectrum,” Snider said. “There are a lot of different places people can land on this [spectrum].”

He explained that this spectrum has extremes on both sides – with one extreme relying on a central bank, to a completely disaggregated blockchain that operates independently of any body.

Goforth said if regulators, such as the Securities and Exchange Commission, are successful, entrepreneurs and businesses may find themselves discouraged from doing business in the United States if they plan to take advantage of blockchain and crypto-technology. cash.

“There is enormous pressure – not just not to do business [in the United States] – but to protect US investors by not letting them decide for themselves whether or not this is a risk they want to take.

“In my view, this is a very clear example of over-regulation that has the potential to harm American investors and has the potential to drive technology and entrepreneurs away from our country in ways that are not optimal for anyone. – apart from people who like big jurisdictions for the SEC.

Uncertainty still exists

Snider said while some countries are looking at the technology, many still don’t know how to approach it.

“You have countries that have made [cryptocurrency] their national currency, and you have countries like Russia and China that said ‘no, it’s forbidden’,” Snider said. “I think you have people who don’t understand something who take laws that are anachronistic in nature – very old – and say ‘hey, these buckets apply because we can’t think of other buckets in which the put at the moment and we do not. have the time or the effort, so we’ll just put them in these buckets and hope they work.

Snider also added that despite the best efforts of regulators and countries to try to regulate cryptocurrency, all it takes to get around the laws is a virtual private network, or VPN, which allows users to send and receive data while hiding their location from those who might try to monitor them.

“There is a very big lack of being able to control [cryptocurrency]and it scares them,” Snider said.

Our Broadband Breakfast Live Online events take place on Wednesdays at noon ET. You can also PARTICIPATE ONLINE in the ongoing Broadband Breakfast Live Online event on Zoom.

Wednesday, February 9, 2022, 12:00 p.m. ET – Cryptocurrency mining

Join us in person for a Broadband Cryptocurrency Lunch Breakfast. In Broadband Breakfast’s first session on the topic of decentralized finance, we’ll explore recent blockchain developments, examine the impact of cryptocurrencies on global financial transactions and transfers, and discuss government officials’ attempts to exploit – or banish – the blockchain. based on digital currency.

Panelists for this Broadband Breakfast Live Online session:

  • Jennifer Schulp, Director of Financial Regulation Studies at the Center for Monetary and Financial Alternatives at the Cato Institute
  • Carol Goforth, Clayton N. Little Professor of Law, University of Arkansas at Fayetteville
  • Matthew SniderSenior Vice President, Centri-Tech
  • Drew Clark (moderator), editor and publisher, Broadband Breakfast

Panelist Resources:

  • New Technology and Old Rules: Constructing a Crypto Regulatory Framework, Cato Institute four-event series, November 22, 2021-January 13, 2022
  • Regulation of cryptotransactions, by Carol Goforth and Yuliya Guseva
  • Broadband Internet Solutions for Affordable Housing, Centri Tech
  • NFT Board
  • Will web3 reinvent internet business?, The Economist, January 28, 2022
  • CES 2022: Cryptocurrency leaders argue the benefits as regional crackdowns uncertainby Benjamin Kahn for Broadband Breakfast
  • US needs to modernize with blockchain and cryptocurrencies, says former Trading Commission chairmanby Benjamin Kahn for Broadband Breakfast
  • NFTs Could Be Central to Emerging ‘Internet of Value’ Say Experts at Pulver VON3, by Megan Boswell for Broadband Breakfast

Jennifer Schulp is Director of Financial Regulation Studies at the Center for Monetary and Financial Alternatives at the Cato Institute, where she focuses on securities and capital markets regulation. She testified before the US House Committee on Financial Services, and her writings have appeared in Business Intern, MarketWatch, and others. Prior to joining Cato, Schulp was Director of the Financial Industry Regulatory Authority Inc.’s Enforcement Department, representing FINRA in investigations and disciplinary proceedings relating to violations of federal securities laws and regulators’ rules. self-regulation.

Carole Goforth is Clayton N. Little Professor of Law at the University of Arkansas at Fayetteville. She is the author of more than a dozen academic articles dealing with the regulation of crypto-assets and the transactions within them, as well as the regulation of crypto-transactions, a comprehensive text for law students and others. people interested in cryptocurrency regulation published in 2020 by West Academic. The second edition of this book is expected in April this year.

Matthew Snider is Senior Vice President of Strategy and Business Development at Centri Tech. His career has focused on broadband accessibility and adoption in underserved communities, both urban and rural. An active participant in the blockchain economy for six years, Snider understands the impact these technologies play in creating use case solutions that drive broadband and blockchain adoption.

Drew Clark is the editor and publisher of BroadbandBreakfast.com and a nationally respected telecommunications attorney. Drew brings together experts and practitioners to advance the benefits offered by broadband. Under the American Recovery and Reinvestment Act of 2009, he spearheaded a State Broadband Initiative, the Partnership for a Connected Illinois. He is also president of the Congress of Rural Telecommunications.

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Illustration of Exin’s blockchain used with permission

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Sylvia B. Polson