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A Quick Dive into the Digital Asset Reg Bill in the House

26 July 2022

Sabo on Twitter breaks down the 68-page Loomis-Gillibrand digital asset bill into a quick read that hits all the high points of a push that, if passed, could dramatically change crypto.

(Click here for the thread.)

Passage of the bill this session is doubtful, given that it’s an election year and a divisive topic, but the proposed framework looks like a first step towards the comprehensive digital asset regulation they want. And the bill may get a better reception in the next Congress.

Sabo asks questions such as, do the policies provide market stability? Do the policies provide clarity regarding issues like taxes, asset definitions and regulatory enforcement? He says they do, and says it would be good for crypto.

But that misses the point. The people pushing for this don’t have a clue what they are doing, or the damage they could do.

Any regulation will stifle innovation. It won’t keep up with decentralized international financial technology. And it will subject market participants to political censorship.

Ultimately, any attempt to regulate crypto is as doomed now as it was when the FCC tried to regulate Internet broadcasting in 1997.

The government can’t seize a power that has already evaporated. Attempts to rekindle the past will just lead to innovation happening in other countries, which is the last thing we need.