Photo Cred To Justin Aptaker Via Flickr

During a recent hearing over the Facebook Libra project, members of the House Committee on Financial Services expressed concerned about the project. Despite these concerns, a growing number of US lawmakers are speaking out in favor of the cryptocurrency industry.

A good example of this is the passing of the Blockchain Promotion Act. It indicates that the US government is serious about creating a legislative framework that will help oversee the possible use of the blockchain in various areas. While there has been a lot of skepticism regarding Facebook Libra, it indicates that lawmakers are warming up to crypto assets, and especially the blockchain.

Bitcoin is Unstoppable

Rep Patrick McHenry described Bitcoin as an unstoppable force during a hearing of the House Committee on Financial Services. He asked regulators to encourage innovation in the US around digital currencies. Rep. McHenry is of the opinion that the US Congress should not attempt to stifle innovation. He noted that governments, which had tried to stop crypto, ended up failing. Later on, he was interviewed on Squawk Box about the Facebook Libra hearings at Capitol Hill. He described current measures as a knee-jerk reaction meant to stifle the project before it even launches.

Regulating Crypto is about Financial Inclusion

When talking about crypto, it is all about financial inclusion, according to McHenry. He was of the opinion that the immigrant community would be a great beneficiary of the Facebook Libra project. Currently, it costs about 10% to send money around the world. However, this project would lower that cost by a great deal.

The legislator also believes that the blockchain will play an important role in the transfer of large amounts of money. He noted that using the SWIFT network was expensive and archaic. Thus, there was a major opportunity for innovation using the blockchain.

About the Blockchain Promotion Act

The Senate Commerce, Science, and Transportation Committee approved the Act on July 9. It first arrived in the House of Representative in October 2018. It then arrived in the Senate on February 2019. The Act directs the Department of Commerce to come up with a standard definition for the blockchain.

The bill was created to avoid a situation where a patchwork of regulation emerges around blockchain technology. It will help to establish a framework around which future legislation can be based. Interesting to note is that the bill received bipartisan support in Congress and the Senate. This is a rare thing in US politics today. It is a clear sign that all members of the House and Senate understand the importance of blockchain technology.

The hope is that this bill will help to promote the use of blockchain technology by the federal government. It will also ensure that more departments of government are exposed to the blockchain technology. As a result, it will ensure they become more transparent and efficient. A member of the US Senate noted that not only can the blockchain technology provide financial benefits, but it also had humanitarian benefits.

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