US Congressmen Warren Davidson and Mike Flood have sent a letter to the chairman of the Council of Economic Advisers (CEA) demanding an explanation for a chapter the agency prepared for the "President's Economic Report" that expresses "hostility toward the United States." Viewpoint "Digital Asset Ecosystem."
The report, presented to Congress in March, included a chapter titled “The Reality of Cryptoassets,” which claimed that such assets “did not deliver any of the promised benefits.” The lawmakers claimed that the agency's opinion marks a reversal of the president's position on the “Executive Order to Ensure Responsible Development of Digital Assets.” They write: "We're working hard in Congress to do our part in creating regulations for digital assets that allow this innovative ecosystem to thrive in the United States, while enforcing important protections."
“By taking such an adversarial stance toward the digital asset ecosystem, the government is simply pushing digital asset innovation overseas,” they wrote, adding that this dynamic would begin to “suck capital and economic growth out of the US and into for the benefit of other countries". The letter raises a number of questions, many of which immediately come to the minds of cryptocurrency proponents who oppose the claims made in the report. The authors ask how companies comply with the law "when allegedly applicable laws conflict, " for example, when a product is considered both a security and a commodity. They further asked why the agency dismissed the role of Congress by saying that existing regulations cover most activities in the crypto space. They wrote, "Does the CEA believe that Congressional legislation will not mitigate potential risks and provide consumers with greater protections than they currently have?"
Finally, lawmakers demanded to know why the agency, which is part of the executive office of the president, claims that the upcoming FedNow instant payment system and central bank digital currency will be simpler and more effective than digital assets in upgrading the financial system. letter did not explain what purpose the requested information would be used for. The authors set a deadline of May 26 for answers.
Davidson, a longtime cryptocurrency advocate, introduced legislation in April that would remove Gary Gensler as SEC chairman.
In 2021, Flood introduced a bill as a Nebraska lawmaker that would allow financial institutions in the state to operate digital asset custody businesses. The bill has been signed into law. At the federal level, Flood supported Rep. Tom Emmer's“ CBDC Anti-Surveillance State Act” when it was unveiled in February.
