One of the most impressive features of Bitcoin and other cryptocurrencies is its decentralized character. However, the beauty of a decentralized virtual currency has been brought into legal question by US House Representative Bill Huizenga of Michigan. He asks this question on behalf of the very investment firms that pay him money to squash innovation, so they can maintain their hold on the US economy.
He proposes that the Congress together with the Securities and Exchange Commission and the Commodity Futures Trading Commission should also take a major role in regulating the different kinds of cryptocurrency investments and transactions. He asserts the need for congressional oversight in order to protect US citizens from fraudulent activities and digital currency scams.
The intention of the proposal on crypto market regulation, however, seems to be questionable because of Representative Huizenga’s campaign donation records. As he asserts during an April 2018 hearing of the Subcommittee on Capital Markets, Securities, and Investment, he is very concerned about the constantly declining number of IPOs or initial public offerings happening in the country which creates a negative effect to the common investors.
It is not a surprise that his campaign donation records reveal that most of his financial supporters are investment firms. You could check from this website that his top campaign contributors all have business interests that may need legislative influence for their own benefit. Could there be a lobbying activity happening to control the cryptocurrency market?
As a key member of the House Financial Services Committee, Congressman Bill Huizenga can potentially cause negative perceptions about the health and viability of the cryptocurrency market. An increase in regulation could scare potential crypto investors, and thereby bring forth a price drop in most virtual currencies.
What could be the main reason for Rep. Huizenga’s pushing for cryptocurrency regulation? Is it really for the benefit of the US populace or is it more likely done to satisfy campaign donors?