Congress for Sale: Cryptocurrency Firms Write Their Own Laws
A recent bill passed by the House of Representatives is supposed to control the cryptocurrency industry and protect consumers. But it might actually be a trap designed by wealthy companies to help themselves keep making money.
The Bill That Changes Everything
The Financial Innovation and Technology for the 21st Century Act is a big deal for the cryptocurrency world. In simple terms, this law would stop the SEC (Securities and Exchange Commission) from overseeing crypto businesses. Since the 1930s, the SEC has been the main body protecting small investors. But if this bill becomes law, crypto companies would be regulated by the Commodity Futures Trading Commission (CFTC), a much smaller and less powerful agency.
The Big Concerns
This change could be dangerous. The FBI reported in 2023 that over $4 billion was lost due to investment scams involving cryptocurrencies. Another report showed that more than 90% of stablecoin transactions (a type of cryptocurrency) are fake.
Mark Hays, senior policy analyst at Americans for Reform, warns, "This bill, if enacted, would close the purported crypto regulatory gap with a wrecking ball instead of a modest patch, damaging financial regulatory safeguards for all Americans, not just crypto consumers."
Using Jargon to Mislead
Crypto companies have been using complicated words and making big promises about "innovation" to trick lawmakers. They dress up their real intentions, which are to avoid strict rules that could stop their risky practices.
Money Talks
The push for this bill shows how much money influences politics. The crypto industry has spent a massive amount on lobbying and supporting political candidates. Crypto Super PACs (Political Action Committees) have spent over $100 million in this election cycle.
Lawmakers Captive to the Industry
An alarming number of lawmakers, including 71 Democrats, joined Republicans to pass this bill, even though they generally distrust the crypto industry. This shows the power the crypto lobby has over lawmakers, despite opposition from many consumer and labor groups, state regulators, and the Biden administration.
What Voters Can Do
Voters need to tell Congress to resist the temptation of false promises and fancy public relations. Lawmakers must hold the crypto industry to the same standards as everyone else. Why should crypto investors get less protection? The industry's record shows that’s not a risk worth taking.
Note: All views expressed above reflect the opinions of the author, not necessarily those held by People’s World.
