Congressman Urges US Regulators Not To Ignore Bitcoin
Congressman Kevin McCarthy is urging Janet Yellen and Jerome Powell not to ignore Bitcoin or America will ‘fall behind’.
Congressman McCarthy serves California’s 23rd district and is currently the Republican leader in the U.S. House of Representatives and has long been bullish on Bitcoin.
He was speaking on a Squawk Box interview, when he was asked about Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell’s understanding of Bitcoin
‘I was right then and I’m right now,’ demanded McCarthy, who warned both regulators that ignoring Bitcoin would harm America.
‘I think they tried to ignore it to make it go away. I think Jamie Dimon will tell you that from the beginning he was wrong. This is moving toward the future. They should not ignore it.’
‘This is something that those who regulate, those who are in government that make policy better start understanding what it means for the future, because other countries are moving forward especially China,’ warned the congressman.
‘I do not want America to fall behind. I want the next century to be ours. That’s why I want to look forward, not backward, and not keep my head in the sand.’
What Are Janet Yellen and Jerome Powell’s Stance On Bitcoin?
Congressman Kevin McCarthy has warned the regulators not to put their head in the sand with Bitcoin or America will fall behind its competitors.
The US has hardly clamped down on Bitcoin and has let it evolve organically, so what is Janet Yellen and Jerome Powell’s stance on Bitcoin?
Treasury Secretary Janet Yellen recently called Bitcoin a ‘highly speculative asset’ and warned that it was an ‘extremely inefficient way of conducting transactions,’ most of which is used for illicit trades.
‘To the extent it is used I fear it’s often for illicit finance,’ explained Yellen. ‘It’s an extremely inefficient way of conducting transactions, and the amount of energy that’s consumed in processing those transactions is staggering.’
Wrong Janet. According to a Chainalysis report, illicit activity using cryptocurrencies makes up for 0.34% of all transactions on all cryptocurrencies, including privacy coins.
Whereas, according to the UN, it is estimated that between 2% and 5% of global GDP is connected with money laundering and illicit activity. A big difference.
Yellen also claims the amount of energy Bitcoin uses is staggering, but Yellen forgot to reference a report by the University of Cambridge, which states ’76% of digital currency miners use renewable power sources.’
And actually, Bitcoin is good for the environment. Because there is the option of turning energy into value, Bitcoin is helping speed up renewable innovation, something the legacy financial system failed to do.
Federal Reserve Chair Jerome Powell said last month that ‘the US public needs to understand the risks behind Bitcoin’ and called it a ‘vehicle for speculation.’
Powell was speaking at a virtual summit hosted by the Bank for International Settlements, and appeared unconcerned by the idea of Bitcoin replacing the dollar.
‘They’re really vehicles for speculation,’ claimed Powell. ‘They’re not really being actively used as payment’ and are ‘essentially a substitute for gold rather than for the dollar.’
What US Regulators Say In Public Probably Defies What Is Really Going On
Jerome Powell is right that Bitcoin is a substitute for gold, and it’s without question Bitcoin has taken market share from gold in a time when the price of gold should have been rocketing.
Of course, it’s nothing compared with any government currency, but for a currency with no government backing, Bitcoin has made giant leaps in its 12 years of existence.
Janet Yellen and Jerome Powell have to dismiss Bitcoin publicly, but if they really have their head in the sand, America will fall behind.
The way America is letting Bitcoin regulate itself, however, tells me their public statements defy what is really going on behind the scenes in Washington.
A Bitcoiner since 2017 and a Bitcoin Maximalist since 2018, Tommy is our main writer and editor at Bitcoin Maximalist. Other than researching and writing about Bitcoin, Tommy loves spending time with his family and supporting his beloved Leeds United.