The House Commission on Financial Services heard from several CEOs of major crypto firms in the United States, some of whom seemed to nowadays a united front in urging lawmakers to provide a clear regulatory framework for crypto.

Speaking at a Wednesday hearing titled "Digital Avails and the Future of Finance: Agreement the Challenges and Benefits of Financial Innovation in the United States," Circumvolve CEO Jeremy Allaire, FTX CEO Sam Bankman-Fried, Bitfury CEO Brian Brooks, Paxos CEO Chad Cascarilla, Stellar Development Foundation CEO Denelle Dixon and Alesia Haas, chief financial officer of Coinbase and CEO of its U.S. subsidiary, told U.S. lawmakers most the challenges their companies faced every bit both stablecoin issuers and digital asset exchanges.

In a written statement released prior to the hearing, Allaire said Circumvolve supported Congress' efforts for "national licensing and Federal supervision" of stablecoin issuers, given many were now "too big to ignore." Cascarilla seemed to echo this sentiment, describing the U.S. financial system as "inadequate" for treatment the emerging digital economy, but blockchain engineering science may offer a possible solution:

"A blockchain-based financial architecture could settle trades on the same day, mitigate counterparty chance and eliminate the costly central clearinghouse," said the Paxos CEO. "This would enable market participants and regulators to monitor and right settlement and margin shortfalls in real time. We agree that shortening the trade settlement bicycle should be a high priority for the SEC, and we are working aggressively to make that possible."

Circumvolve CEO Jeremy Allaire addressing the House Commission on Financial Services on Wednesday

Brooks added that in that location were already examples of companies involved in the digital nugget space finding a more regulatory-friendly environment in other countries, such as Fidelity launching a Bitcoin (BTC) exchange-traded fund in Canada in the absence of the U.S. Securities and Exchange Committee's approval of one.

"At that place is a reason why crypto talent is no longer full-bodied in Silicon Valley, the birthplace of the original commercial Internet," said Brooks. "Sure, some talent has merely moved from Silicon Valley to Miami — simply a surprising number of talented founders have left for Portugal, Dubai, Abu Dhabi, Singapore, and other jurisdictions that are not at all unregulated merely that have a more positive posture toward innovation and growth."

Related: Usa lawmaker urges congressional action on crypto equally government avoids shutdown

Addressing the panel of crypto CEOs, Representative Patrick McHenry argued the technology in the crypto space was "already regulated" merely acknowledged that whatsoever existing framework could be "clunky" and "not up to date." According to the Northward Carolina congressperson, a lack of understanding among his boyfriend committee members could risk overregulating crypto and blockchain:

"We need reasonable rules of the road, nosotros know that. We don't need knee-jerk reactions by lawmakers to regulate out of fearfulness of the unknown rather than seeking to empathize. And that fear of the unknown in the move to regulate earlier understanding will only stifle American ingenuity and put us at a competitive disadvantage."

Notwithstanding ongoing at the time of publication, the House commission hearing seeks to discuss four cardinal aspects of the crypto space: exchanges, stablecoin offerings, regulatory concerns in digital assets, and federal regulatory responses. Lawmakers volition besides likely discuss decentralized finance, given its potential to "replicate and supplant conventional delivery of financial services such as loans, asset trading, insurance, and other services."