US Senate to Hold Debate on Crypto, Blockchain Regulatory Frameworks

The United States Senate Banking Committee is set to hold a broader debate on crypto and blockchain regulatory frameworks next week.

An official committee announcement indicates the hearing — entitled “Examining Regulatory Frameworks for Digital Currencies and Blockchain” — will take place on July 30. 

The planned witnesses will be Jeremy Allaire, co-founder and CEO of payments company Circle, who will speak on behalf of The Blockchain Association; Rebecca M. Nelson, a specialist in International Trade and Finance at “Congress’s think tank,” the Congressional Research Service; and Professor of Law Mehrsa Baradaran, from the Irvine School of Law at the University of California.

The hearing is scheduled for 10 a.m. EST and will be broadcast live. 

Lawmakers eye regulatory matters beyond Libra

The announced hearing comes on the heels of proceedings before congressional committees on Facebook’s Libra earlier this month. As reported, the Banking Committee of the U.S. Senate grilled social media titan Facebook on its planned cryptocurrency project Libra, homing in on concerns such as privacy, trust and regulatory compliance. 

In the aftermath of the Banking Committee Hearing, Chairman Mike Crapo and Ranking Member Sherrod Brown shared additional insights into their concerns. At the time, Crapo said: 

“We've got to look at how we structure data protection in the United States […] We need to move to a comprehensive approach. What that structure exactly is, I can't tell you.”

During a hearing at the U.S. House Financial Services Committee held the following day, one House representative asked David Marcus — the CEO of Facebook’s planned Calibra wallet service — how lawmakers could be expected to trust a firm whose collection, storage and misuse of customer data had landed it a $5 billion penalty.