Brian Armstrong criticized the approach to regulating digital currencies
A draft law has been submitted to the US Congress, suggesting a two-year ban on creating algorithmic stablecoins, such as TerraUSD. The US authorities are concerned about the risks associated with a repeat of the collapse of TerraUSD.
The documents propose introducing a ban on creating tokens, whose value is provided by other crypto assets and is calculated using algorithms. In addition, according to the bill’s text, the authority to regulate issuers of stablecoins may be given to the Office of Foreign Exchange Control under the US Department of the Treasury and the Federal Deposit Insurance Corporation.
Issuing algorithmic stablecoins without the authorities’ consent can lead to imprisonment for up to 5 years and a fine of up to $1 million.
“Those who understand cryptocurrencies know that Terra does not represent all other stablecoins, Celsius does not equal the entire DeFi space, and Three Arrows Capital does not apply to blockchain technology. But it’s too difficult for deputies to figure it out because it’s much easier to say “cryptocurrencies are bad, they need to be regulated to death,” wrote one of the users of the social network Twitter.
According to Bloomberg sources, the bill could be put to vote as early as next week.
Coinbase CEO Brian Armstrong believes that an overly harsh approach towards crypto companies hinders the development of this area. In particular, the crypto enthusiast pointed to the SEC’s too difficult actions, forcing startups working in the Web3 field to leave the US and register in other jurisdictions.
“One of the most common arguments against cryptocurrency is that it is a matter of national security. The US has already missed out on semiconductors and 5g, which are currently mostly manufactured overseas. They can’t let crypto go offshore as well,” Armstrong wrote on social media.
The founder of one of the popular crypto platforms also promised to continue the fight for the effective development of digital assets in the United States. He stressed that this area is essential for the state and the entire free world.
