U.S. Congressman Jim Himes says that Congress is not ready to pass cryptocurrency legislation anytime soon, citing a lack of deep understanding of cryptocurrencies among lawmakers. â€œThereâ€™s going to be a lot of discussion in the coming years about ways to regulateâ€ cryptocurrencies, said the congressman.
Crypto Legislation Not Expected From Congress Anytime Soon
U.S. Representative Jim Himes has revealed some discussions Congress is having regarding cryptocurrency legislation in an interview with Yahoo Finance Friday. The Connecticut representative serves as the chair of the National Security, International Development and Monetary Policy Subcommittee of the House Financial Services Committee. He previously worked at investment bank Goldman Sachs for 12 years.
His crypto comments came as the U.S. Treasury published a proposal to require businesses to report crypto transactions above $10K to the Internal Revenue Service (IRS).
Himes said that Congress is not ready to act on crypto legislation anytime soon. â€œMost of my colleagues donâ€™t have a deep understanding of cryptocurrencies, what they can do, what the dangers are,â€ he described, emphasizing that â€œCongress has not spent a lot of time on it.â€ The lawmaker elaborated:
â€œThat said, more and more of my colleagues are becoming aware,â€ he continued. Congress also has a pro-bitcoin senator, Cynthia Lummis, who has vowed to show her colleagues in Congress that bitcoin is a great store of value. She also plans to convince Treasury Secretary Janet Yellen of the same.
Congressman Himes proceeded to describe the atmosphere in Congress surrounding crypto discussions, referencing Nobel laureate Paul Krugmanâ€™s recent opinion piece, published in The New York Times, which he said was â€œrelatively well characterized.â€
Himes described, â€œInnovative ideas, thatâ€™s interesting, what does it actually do, what problem does it solve.â€ Pointing out that the benefits to â€œdrug dealers, human traffickers, [and] potential terroristsâ€ are pretty clear to him, he reiterated, â€œTell me what the other benefits are.â€ The congressman noted, â€œThat is sort of general atmosphere in Congress where people are saying â€˜tell me again whatâ€™s good about cryptocurrencies, what problem does it solve.’â€
Nonetheless, Himes emphasized:
He expects that â€œThereâ€™s going to be a lot of discussion in the coming years about ways to regulate, how to tax, etc. etc. â€” all this stuff that causes the government to intersect with something like cryptocurrency.â€
â€œIn a bigger frame of reference, the piling into cryptocurrencies, the Gamestop bubble, Robinhood, SPACs, I could list for you 12 things that feel to me like they are largely a function not of deep fundamental investment research but largely a function of immense amounts of liquidity,â€ he added, noting:
â€œBut it is very clear to me that thereâ€™s a lot of people out there who believe that trees grow to the sky and will get a very expensive education in what the downside of volatility looks like when we do see some kind of bear market or some kind of depression in asset prices. A lot of people are going to get very expensive education when that happens,â€ the congressman warned.
What do you think about Congressman Himesâ€™ statements on cryptocurrency? Let us know in the comments section below.
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.