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Utah Congressman John Curtis and Senator Mike Lee have discussed the future of digital currency regulation in the US. The debate centered around Staff Accounting Bulletin-121, which is strict on banks holding cryptocurrencies. Curtis emphasized the importance of bipartisan agreement on crypto rules and urged industry experts to help clear up lawmakers’ misunderstandings. Senator Lee pointed out risks including over-regulation, conflicting state rules, and potential Federal Reserve interference in digital currency. He argued against tax on cryptocurrency profits and stressed the need for light regulation to foster innovation.

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Utah Congressman John Curtis recently joined Utah Senator Mike Lee at an event called Permissionless III to talk about what the future might look like for digital currency rules in the US.

The discussion involved a law called Staff Accounting Bulletin-121 which was pretty tough on banks that hold cryptocurrency. Some people wondered if there could be a bipartisan comeback to repeal (or do away with) this law. Curtis said he thought it was possible, but that it wouldn’t be very firm or stable.

Curtis emphasized the importance for everyone to realize if we let politics get in the way, we will have a hard time. So he said we need to find common ground with the Democrats to agree on rules for crypto. Curtis also mentioned that some of his fellow lawmakers have a hard time understanding the complexities of digital currencies.

He called on experts in the industry to help educate lawmakers and clearly explain how the cryptocurrency industry works to clear up any fears they might have about the unknown.

As for Senator Mike Lee, he shared his thoughts on the three worst things he believes could happen to cryptocurrencies. They include the Federal Reserve creating its own digital currency (already facing some pushback in states like North Carolina and Florida), too much regulation by the federal government, and conflicting rules from state to state.

Lee warned letting each state decide their own crypto rules could be lethal for the industry. He emphasized that digital currencies need new different regulation as it is neither a security nor a commodity but used as a means of exchange. He also said he doesn’t believe we should tax the profit made from cryptocurrency transfers.

Lee finished by emphasizing the need for government to avoid heavy regulation so the innovative crypto industry doesn’t get choked out.

Source: Cointelegraph